Tempsens Instruments IPO Surges Over 7X on Day Two; Grey Market Premium Hits 90% Amid Massive Institutional Interest
The initial public offering (IPO) of Tempsens Instruments is commanding significant market attention, continuing its strong performance into the second day of bidding. The issue has been subscribed at a robust level, demonstrating high investor appetite for the specialized manufacturing company.IPO Subscription Details and Market Demand
As of 5:00 pm on August 21, data from NSE indicated that Tempsens Instruments received 21.65 times subscription. The total offering was for 1,51,81,667 shares against which bids were placed for 32,86,32,350 shares.The demand distribution shows strong enthusiasm from institutional investors. Non-Institutional Investors (NIIs) drove the bidding, achieving a subscription of 52.97 times. The Retail Individual Investors (RIIs) portion was also highly successful, subscribed at 18.65 times.
Grey Market and Listing Price Outlook
In the grey market, Tempsens Instruments shares are trading with considerable momentum. On August 21, the stock was commanding a premium of Rs 270 according to InvestorGain.Given that the upper end of the IPO price band is set at Rs 300, a grey market premium (GMP) of Rs 270 suggests a potential listing price around Rs 570. This translates to a premium of approximately 90 percent over the issue price. Investors should note that GMPs are unofficial indicators and do not guarantee actual returns or final listing prices.
IPO Structure and Anchor Investor Allocation
The total size of the IPO is Rs 650 crore. The offering includes a fresh issue worth Rs 95 crore, along with an Offer for Sale (OFS) comprising 1.85 crore shares valued at Rs 555 crore at the upper price band.Tempsens Instruments secured Rs 194.5 crore from anchor investors ahead of the public issue on August 19. This allocation included allotments to 64.84 lakh equity shares across 29 anchor investors.
Domestic mutual funds constituted a significant part of this anchor investment. Eight domestic mutual funds, including HDFC AMC and Nippon Life India, received 37.21 lakh shares through 14 different schemes. Axis Max Life Insurance and Kotak Mahindra Life Insurance were allotted an additional 4.67 lakh shares.
Company Finances and Future Plans
Tempsens Instruments reported solid financial figures for the fiscal years FY25 and FY26. The company’s revenue reached Rs 444.9 crore in FY26, a 17.5 percent increase from Rs 378.5 crore in FY25. Profit demonstrated growth, rising 11.2 percent to Rs 67.3 crore in FY26 from Rs 60.6 crore the previous year.Geographical split of revenue shows domestic business contributing 71.5 percent of the FY26 revenue. Exports accounted for the remaining 28.5 percent.
The company has specified how the net proceeds will be utilized. Of the fresh issue funds, Rs 18.1 crore is earmarked for capital expenditure in its electrical heating and specialised cable solutions segments. Furthermore, Rs 55 crore is designated for debt repayment, with the remainder allocated to general corporate purposes.
Company Profile and Business Operations
Tempsens Instruments is a Rajasthan-based manufacturing company specialized in contact and non-contact temperature sensors. The company maintains operations across 15 global manufacturing units.The business holds significant market standing in India's sensor segment. It reportedly commands a 10.5 percent market share in the domestic temperature sensor market. Additionally, it has secured a 21.3 percent share in the non-contact temperature sensor market. ICICI Securities and JM Financial are serving as the book-running lead managers for the IPO.
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