TechEra Engineering (India) Limited operates in the Aerospace, Defence, and Automation sector, playing a pivotal role in advancing technological innovation and enhancing national security in India. With a focus on manufacturing, TechEra’s team is integral in producing high-quality components and systems that adhere to the stringent standards of the Aerospace and Defence industries.

The company is launching a Book Built Issue IPO amounting to ₹35.89 Crores, consisting entirely of a fresh issue of 43.77 lakh shares. The subscription period for the TechEra Engineering IPO opened on September 25, 2024, and will close on September 27, 2024. Allotment results are anticipated to be finalized on or around September 30, 2024, with shares listed on the NSE SME on or about October 3, 2024.

The share price band for the IPO is set at ₹75 to ₹82 per equity share, with a minimum lot size of 1,600 shares. Retail investors are required to invest a minimum of ₹1,31,200, while High-Net-Worth Individuals (HNIs) need to invest at least ₹2,62,400 for 2 lots (3,200 shares). SKI CAPITAL SERVICES LIMITED serves as the book-running lead manager, while KFIN TECHNOLOGIES LIMITED is the registrar for the issue. SKI Capital Services Limited and Acme Capital Market Limited act as market makers for the IPO.

TechEra Engineering India Limited IPO GMP Today

The Grey Market Premium (GMP) for the TechEra Engineering IPO is projected to be in the range of ₹10 to ₹13, suggesting a potential upside. However, it is important to note that the GMP is an unregulated indicator and does not guarantee price discovery.

Subscription Status:

As of 4:28 PM on September 27, 2024, the live subscription status for the TechEra Engineering IPO indicates a strong subscription rate of 63.77 times on its final day of the subscription period. Investors can check the current subscription status via the NSE.

Anchor Investors Report:

TechEra Engineering successfully raised ₹10.22 Crores from anchor investors at a price of ₹82 per share, allocating a total of 12,46,400 equity shares to these investors, with shares allotted from the Qualified Institutional Buyers (QIBs) reservation portion.

Allotment Process:

The TechEra Engineering IPO allotment date is set for September 30, 2024. Investors can check their allotment status by following these steps:

Visit the IPO allotment status page.

Select TechEra Engineering Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID, and submit to view your allotment status.

Utilization of IPO Proceeds:

The proceeds from the IPO will be allocated to:

₹2,000 Lakhs for funding capital expenditure for the purchase of new machinery.

₹600 Lakhs for funding working capital requirements.

₹500 Lakhs for prepayment or repayment of certain outstanding borrowings.

General corporate purposes.

Meeting issue expenses.

Financial Overview:

TechEra Engineering has demonstrated significant financial growth, with revenues for Fiscal Years 2024, 2023, and 2022 reported at ₹3,907.66 Lakhs, ₹2,659.13 Lakhs, and ₹736.74 Lakhs, respectively. The EBITDA figures for these years were ₹901.38 Lakhs, ₹424.74 Lakhs, and ₹-357.69 Lakhs, while the Profit After Tax stood at ₹482.25 Lakhs, ₹130.50 Lakhs, and ₹-628.70 Lakhs.

For the TechEra Engineering IPO, the pre-issue Earnings Per Share (EPS) is ₹4.14, and the post-issue EPS is ₹3.83. The pre-issue Price to Earnings (P/E) ratio is 19.80x, and the post-issue P/E ratio is 21.40x, compared to the industry P/E of 84.98x. The company's Return on Capital Employed (ROCE) for FY24 is 23.47%, and the Return on Equity (ROE) is 30.33%, indicating that the IPO is reasonably priced.

Investment Recommendation:

With a Grey Market Premium (GMP) suggesting potential listing gains of 10% to 15%, and considering the company's robust financial performance, we recommend investors to consider the TechEra Engineering (India) Limited IPO for potential listing gains, but to approach it with caution for long-term investments.

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