Tega Industries Has a Strong Public Debut—Share Price, Explained

After a three-day bidding process, Tega Industries is now listed on the National Stock Exchange with a share price much higher than its issue price.

Ade Hennis - Author

Dec. 13 2021, Published 12:44 p.m. ET

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Source: Tega Industries Twitter

Mills are crucial in manufacturing materials and resources for people’s everyday needs. Tega Industries ensures that the quality of these mills stays in the best shape possible. The name Tega Industries might not sound familiar to the average consumer, but global companies around the world, especially in the Middle East, are familiar with the mill manufacturing company. Its success has led to a successful IPO where its share prices are much higher than its issue price.

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Tega is an Indian company, so its shares were publicly listed on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange of India) on Dec. 13. Its IPO period had its shares priced at 453 rupees ($5.98) and prices soared to 753 rupees ($9.93) on the BSE and 760 rupees ($10.03) on the NSE. With over a 60 percent increase in share prices from the initial offering, the company could be a promising investment.

Source: Tega Industries Twitter
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What is Tega industries?

Founded in India, Tega Industries specializes in industrial activities like mining, mineral processing, material handling, and engineering. The company is currently one of the largest mill liners in the world. The mill liners help protect mill shells from the wear and tear of the grinding that occurs during milling production. The industrial company operates in over 70 countries including South Africa, Chile, Australia, and India.

Tega Industries helps ensure that companies around the world have the right materials to mill different materials safely and properly. The company offers products like mill inner linings, screening solutions, liners that are resistant to wear and tear, spare parts, and material handling. Tega is the second-largest company in the world that produces polymer-based mill liners. Various companies trust the durability and strong build of its products.

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Founded in 1976, Tega is a subsidiary of MM Group, which is a holding company that has ownership in a variety of companies that are in the industrial, agriculture, and energy sectors. Madan Mohanka is the chairman of MM Group and many of its subsidiaries like Tega, MM Aqua Technologies Limited, Maple Orgtech Limited and Hosch Equipment Limited. Mohanka has a strong background in the industrial and engineering fields and he holds multiple degrees in civil engineering.

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According to Lead India, Mohanka and the company practice good ethics like providing reimbursement for workers who have to pay for their children’s education costs. The reimbursement covers expenses like computer costs, supply costs, and more. The chairman’s son, Mehul Mohanka, serves as the CEO of Tega Industries.

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Is Tega Industries IPO a buy?

According to Live Mint, the company has a target price of 840 rupees ($11) for the next 3–6 months. Those who were able to buy shares during the initial issue period are recommended to hold for the long term and sell for profits if needed.

With a significant increase in the share prices already from Tega Industries' initial offering period, it could also be beneficial to wait for the price to retrace to lower prices before entering a buy order for the stock. Regardless, with Tega being one of the most trusted mill liner manufacturers in the world, it could become one of the biggest industrial stocks on the NSE and BSE.


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