TechEra Engineering IPO Opens For Subscription — Check GMP, Price Band, Offer Size And Other Details

The initial public offering (IPO) of TechEra Engineering Ltd. will open for subscription on September 25. TechEra Engineering IPO is an entirely fresh issue of 43.78 lakh shares aggregating to Rs 35.9 crore.

Here are some key details for those interested in applying for the IPO:

The three-day subscription window for TechEra Engineering IPO is scheduled to conclude on September 27.

TechEra Engineering IPO price band has been fixed in the range of Rs 75 to Rs 82 per share. Retail investors can place bids in the issue with a minimum lot size of 1600 shares, totalling an investment of Rs 1,31,200.

According to the company's Red Herring Prospectus (RHP), the company has reserved 50% of the net offer size for Qualified Institutional Buyers (QIB) and 15% is set aside for the Non-Institutional Investors category. The remaining 35% of the offer is reserved for retail investors.

Kfin Technologies Ltd is the registrar for the issue. TechEra Engineering has appointed SKI Capital Services Ltd. as the book-running lead manager for the IPO. The market maker for Thinking Hats Entertainment Solutions IPO is Giriraj Stock Broking Pvt.

The company will finalise the allotment of shares on September 30. This will be followed by the initiation of refunds and credit of shares into the demat account of non-allottees on October 1

TechEra Engineering shares are set to list on the NSE SME platform, Emerge, tentatively on October 3.

The grey market premium (GMP) of TechEra Engineering IPO was Rs 20 as of 6:03 a.m. on September 25, implying an 24.39% gain over the IPO price, according to Investorgain.

Based on the GMP, the estimated listing price of the stock is likely to be Rs 102 per share. GMP is not an official price quote for the stock and is based on speculation.

Also Read: How to Increase Chances of Getting IPO Allotment

TechEra Engineering Ltd is engaged in the design, manufacturing and supply of precise tooling and components for aerospace and defence industries. The company’s product portfolio includes assembly tools, jigs, fixtures, maintenance and repair tools, and other such components. The company, incorporated in 2018, employed 177 full-time qualified professionals as of September 2024.

Use of Proceeds

TechEra Engineering plans to use the proceeds from the issue to purchase new machinery and for the working capital requirements. Additionally, the proceeds will be used to pay off outstanding borrowings. The funds will further be used for general corporate purposes and issue-related expenses.

Financials

TechEra Engineering’s revenue for FY24 increased 46.93% to Rs 39.07 crore as compared to Rs 26.59 crore in FY23. The company’s profit after tax increased 315.67% to Rs 5.57 crore in FY24, up from Rs 1.34 crore in the previous financial year.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.