TechEra Engineering Share Price Lists At 52% Premium On NSE In Strong Debut

Shares of TechEra Engineering Ltd. debuted on the National Stock Exchange at a premium of 52.4% over the upper price band of the issue price of Rs 82. The stock listed at Rs 125 apiece on the NSE. Investors who were allotted a minimum of 1 lot or 1,600 shares in the IPO would have made a profit of Rs 68,800 against an investment of Rs 1,31,200 at listing.

The stock was trading 5% higher at Rs 131.25 per share around 10:10 a.m. on the NSE.

The grey market premium on TechEra Engineering Ltd. shares stood at Rs 18 just ahead of the listing on Thursday. As per InvestorGain, shares of TechEra Engineering were expected to list at Rs 100 against an issue price of Rs 82, marking a possible premium of 21.95%.

Investors must note that GMP is highly speculative and may not be a true indicator of how a stock may perform in reality.

TechEra Engineering IPO was booked around 70 times during the bidding window between Sept. 25 to Sept. 27. The IPO subscription was led by non-institutional investors who subscribed their allotment 128.88 times. Retail investors booked their portion 66.52 times followed by qualified institutional buyers subscribing their quota 31.22 times.

TechEra Engineering IPO was an entirely fresh issue of 43.78 lakh shares totalling Rs 35.9 crore shares. The price band for the IPO was set between Rs 75 and Rs 82 per share. Retail investors needed to apply for a minimum of 1,600 shares, requiring an investment of Rs 1,31,200.

The IPO share allotment status was finalised on Sept. 30. KFin Technologies Ltd. served as the registrar for the issue.

TechEra Engineering Ltd. aims to use the net proceeds from the IPO to fund capital expenditures on the acquisition of new machinery. Further, the money will also be used for working capital requirements and settlement of debts.

TechEra Engineering is a supplier of precise tooling and components for aerospace and defence industries. The company, founded in 2018, offers automation system solutions.

The company’s portfolio includes 3D modelling, assembly tools and precision machined components, and leveraging advanced manufacturing technologies like 5-axis machining.

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.