TechEra Engineering IPO Allotment Status: The allotment of TechEra Engineering’s initial public offering (IPO) was completed on Monday, September 30, 2023, following tremendous investor interest and robust subscription levels.
The SME IPO, with a valuation of ₹35.9 crore, was open for bidding from September 25 until September 27. A price band was set between ₹75 and ₹82 per share, making it an attractive investment opportunity for retail and institutional investors alike.
Investors can conveniently check their TechEra Engineering IPO allotment status online via the official portal of the IPO registrar, Kfin Technologies Ltd. This enables quick access to information regarding the shares allocated to them.
The company is set to credit equity shares into the Demat accounts of investors who received allotment on Tuesday, October 1. Additionally, refunds for applications that were not successful will also be processed on this date. TechEra Engineering’s IPO is scheduled to list on the NSE SME platform on Thursday, October 3, 2024.
How to Check IPO Allotment Status
Step 1: Navigate to the IPO registrar website of Kfin Technologies Ltd.
Step 2: From the selection menu, choose TechEra Engineering IPO for your query.
Step 3: Select your method of inquiry: PAN, Demat account, or application number.
Step 4: Provide the required details such as your application number, PAN (Permanent Account Number), or Demat Account number.
Step 5: Complete the CAPTCHA to verify that you are a human user.
Step 6: Click ‘submit’ to view your allotment status.
About the IPO
The TechEra Engineering IPO consisted entirely of a fresh issue of 43.78 lakh shares, with no offer-for-sale (OFS) component. The minimum lot size for applications was set at 1,600 shares, resulting in a minimum investment requirement of ₹1.31 lakh for retail investors.
This IPO was marked by substantial demand, achieving an impressive bid-to-offer ratio of 69.80 times over the three-day subscription period. It attracted bids for 20.32 crore shares against 31.31 lakh shares available, with the retail segment seeing a 66.52 times subscription rate. The Non-Institutional Investors (NII) category was oversubscribed by 128.88 times, indicating strong confidence in the offering.
The funds raised from this IPO are earmarked for various important purposes, including acquiring new machinery to boost operational efficiency, fulfilling working capital requirements, and refinancing part of existing debt obligations. The remaining funds will go towards general corporate purposes and covering issues related expenses.
SKI Capital Services Limited acted as the book-running lead manager for the TechEra Engineering IPO, with market-making responsibilities split between SKI Capital Services and Acme Capital Market.
About the Company
Established in 2018, TechEra Engineering (India) Limited specializes in designing, manufacturing, and supplying precision tooling and components, particularly for the aerospace and defence sectors. The company’s product offerings include a variety of assembly tools, jigs, fixtures, maintenance and repair tools, ground support equipment, and precision-machined components, utilizing cutting-edge technologies such as 5-axis machining and 3D modeling.
Having received certifications for its quality management systems (ISO 9001:2015 and ISO 14001:2018), TechEra Engineering reported a remarkable 47% increase in revenue and a staggering 270% rise in Profit After Tax (PAT) from FY23 to FY24. This growth reflects the strong market demand for its products and services.
Market Review and Insights
“The company is pivotal in manufacturing and supplying critical components and tools for the aerospace and defence sectors, excelling in the maintenance, repair, and operations (MRO) domain. While the offer document shows some discrepancies, the IPO appears to be fully priced based on FY24 earnings. Savvy investors may consider allocating moderate funds with a medium-term perspective,” commented Dilip Davda of Chittorgarh.com, giving it a ‘may apply’ rating.
Current Grey Market Premium (GMP)
The IPO’s current grey market premium (GMP) stands at ₹22 per share. This suggests a projected listing price of ₹104, presenting a premium of 26.83% above its issue price of ₹82. The GMP remained consistent throughout the last two trading sessions, although it experienced a decline from ₹25 on September 27.
