TechEra Engineering (India) Limited is poised to launch its Initial Public Offering (IPO) on September 25, 2024, in the Aerospace, Defence, and Automation sectors. The Book Built Issue aims to raise ₹35.89 crores by offering 43.77 lakh equity shares. The subscription period for this IPO will close on September 27, 2024, and allotment is expected to be finalized by September 30, 2024. The shares will be listed on the NSE SME, with a tentative listing date around October 3, 2024.

The price band for the TechEra IPO is set between ₹75 and ₹82 per share, and the minimum lot size for retail investors is 1,600 shares, requiring a minimum investment of ₹1,31,200. High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,62,400, which covers 2 lots (3,200 shares).

TechEra Engineering IPO GMP Today

The Grey Market Premium (GMP) for TechEra Engineering is expected to range from ₹10 to ₹13, reflecting limited enthusiasm based on the company's financial outlook. It is crucial to understand that actual trading does not occur based on GMP, and prices may fluctuate based on unregulated market demand and supply dynamics.

TechEra Engineering IPO Live Subscription Status Today

The IPO will be open for subscription on September 25, 2024, with real-time updates available during the subscription period.

TechEra Engineering IPO Anchor Investors Report

TechEra Engineering has successfully raised ₹10.22 crores from anchor investors at the upper price point of ₹82 per share. The allocation includes 12,46,400 equity shares specifically from the Qualified Institutional Buyers (QIBs) reservation portion.

TechEra Engineering IPO Allotment Date

The IPO allotment date is set for September 30, 2024. Investors can check their allotment status by visiting the Registrar’s website and entering their application number, PAN, or DP Client ID.

Objectives of TechEra Engineering India Limited IPO

The proceeds from the fresh issue are earmarked for several key objectives:

₹2,000.00 Lakhs for capital expenditure to acquire new machinery.

₹600.00 Lakhs for working capital requirements.

₹500.00 Lakhs for prepayment or repayment of certain outstanding borrowings.

General corporate purposes.

To cover issue expenses.

TechEra Engineering IPO Review

TechEra Engineering operates within the Aerospace, Defence, and Automation sectors, contributing to India's technological advancements and national security. The company's focus is on manufacturing high-quality components that meet stringent industry standards.

The leadership team comprises experienced professionals:

Nimesh Rameshchandra Desai has over 30 years of experience in engineering.

Meet Nimesh Desai holds over 5 years of industry experience.

Kalpana Nimesh Desai has a diploma in education and 9 years of diverse industry experience.

Financial Performance

TechEra Engineering has shown significant growth in revenue over the past three fiscal years:

Fiscal 2024: ₹3,907.66 Lakhs

Fiscal 2023: ₹2,659.13 Lakhs

Fiscal 2022: ₹736.74 Lakhs

The company’s EBITDA and Profit After Tax (PAT) figures reflect a positive trend:

Fiscal 2024 EBITDA: ₹901.38 Lakhs; PAT: ₹482.25 Lakhs

Fiscal 2023 EBITDA: ₹424.74 Lakhs; PAT: ₹130.50 Lakhs

Fiscal 2022 EBITDA: -₹357.69 Lakhs; PAT: -₹628.70 Lakhs

For this IPO, TechEra Engineering is issuing shares with a pre-issue EPS of ₹4.14 and a post-issue EPS of ₹3.83. The pre-issue P/E ratio stands at 19.80x, and the post-issue P/E ratio is 21.40x, compared to an industry average of 84.98x. The company also boasts a Return on Capital Employed (ROCE) of 23.47% and a Return on Equity (ROE) of 30.33%, suggesting that the IPO is fairly priced.

However, the current GMP indicates potential Gain of 10% to 15%. Given these metrics, investors are advised to avoid the TechEra Engineering IPO for both listing gains and long-term investments.

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