Teja Engineering Industries IPO

About this issue

Teja Engineering Industries listed at +90.0% against its issue price of ₹220. The book is 1.37 times subscribed overall. The grey market premium is +₹36 (+16.4%), which is an informal figure and not a quoted price. Our call is Not Suggested, on 44% of our checks.

Segment

SME

Price

₹220

Lot size

600 shares

One lot costs

₹1,32,000

Issue size

₹35 Cr

Grey market premium

+₹36 (+16.4%)

Subscribed

1.37x

Listed at

+90.0%

Our call

Not Suggested

What we checked

• Profitable in the latest yearPAT ₹4 Cr
• Profit grew year on yearPAT -0%
• Revenue grew year on yearRevenue -2%
• Margin not collapsingPAT margin 7.3% vs 7.4%
• Borrowing under half of net worthDebt/net worth 1.04
• Return on net worth above 15%RoNW 31.9%
• Post-issue P/E under 40P/E 26.4
• Price to book under 6P/B 8.2
• Majority is fresh capital100% fresh issue
• Promoters keep at least half67.2% held post-issue
• Anchor investors participatedNo anchor book
• Overall book more than 10× covered1.4× overall
• Lead manager above segment medianInteractive Financial Services Ltd.: 31 past issues, +6% avg vs +8% segment median

2 further checks could not be judged, because the issue did not disclose enough. They count neither for nor against.