The IPO allotment for TechEra Engineering has been completed as of Monday, September 30, after high demand and significant subscriptions.
This SME IPO, worth ₹35.9 crore, opened for bidding from September 25 to September 27, with shares priced between ₹75 and ₹82 each. Investors can now check the allotment status online via Kfin Technologies Ltd., the IPO registrar.
Shares will be credited to investors’ Demat accounts by Tuesday, October 1, while refunds for those whose applications were not successful will also be processed on the same day. The company’s shares will officially list on the NSE SME on Thursday, October 3, 2024.
How to Check IPO Allotment Status:
- Visit the official Kfin Technologies website.
- Select TechEra Engineering IPO from the menu.
- Choose how you want to check: either by PAN, Demat account, or application number.
- Enter your information (PAN, application number, or Demat account).
- Complete the captcha for verification.
- Click Submit to see your allotment status.
IPO Details:
The TechEra Engineering IPO was entirely a fresh issue, meaning there were no shares offered for sale by existing shareholders. A total of 43.78 lakh shares were offered, with a minimum application size of 1600 shares, meaning retail investors needed at least ₹1.31 lakh to invest.
The IPO was in high demand, receiving 69.80 times more bids than the shares available. Retail investors subscribed 66.52 times, while non-institutional investors (NIIs) subscribed 128.88 times. Qualified Institutional Buyers (QIBs) subscribed 31.22 times.
The funds raised will be used for purchasing machinery, working capital needs, repaying some debts, and general corporate purposes.
Company Background:
Founded in 2018, TechEra Engineering (India) Limited focuses on designing, manufacturing, and supplying specialized tools and components for the aerospace and defense sectors. The company also provides automation system solutions, producing items like jigs, fixtures, and precision machined parts using advanced technologies. TechEra is certified with ISO 9001:2015 and ISO 14001:2018 for quality management.
Between FY23 and FY24, TechEra saw its revenue grow by 47% and its profit after tax (PAT) jump by 270%.
IPO Review:
According to Dilip Davda from Chittorgarh.com, the IPO is fully priced based on the company’s FY24 earnings. While it has shown strong growth in the aerospace and defense sectors, the offer document had some missing information. Davda suggests that well-informed investors may consider investing moderately for the medium term.
TechEra Engineering IPO GMP:
As of today, the grey market premium (GMP) for TechEra Engineering shares is ₹22 per share, meaning the expected listing price is around ₹104, a 26.83% premium over the issue price of ₹82. The GMP has been steady for the past few days but dropped slightly from ₹25 on September 27.
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