Tega Industries, a Kolkata based design and production of consumables for the mineral beneficiation, mining & bulk solids-handling industry, has filed for an IPO of Rs.700-750 crore with the market regulator.
According to sources, the issue would be a complete offer for sale (OFS) of 1.36 crore equity shares of face value of Rs.10 each by promoter and investor selling shareholders. Details of OFS are “promoter selling shareholders” 33 lakh equity shares by Madan Mohan Mohanka, up to 6.6 lakh equity shares by Manish Mohanka and up to 96 lakh by Wagner, an affiliate of the US-based private equity firm TA Associates.
The firm may not receive any proceeds from the offer as it involves only the offer for sale. However, Tega offers a range of abrasion and wear-resistant products and services required for mining and processing of minerals. Between FY19 to FY21, it’s earnings before interest, tax, depreciation and amortization (EBITDA) has grown at a CAGR of 50 percent and return on capital employed has almost doubled. Sources in the major states that with an extensive global footprint in more than 70 countries, Tega’s focus end-customers are mineral processing sites involved in gold and copper ore beneficiation accounting for 34.9 percent and 27.2 percent respectively, of its revenue from sale of products.
Furthermore, it has operations at Dahej in Gujarat and at Samali and Kalyani in West Bengal. “Our international manufacturing operations are in proximity to the world’s major copper and gold mining locations in Chile, South Africa and Australia, with a total built-up area of 74255 sq mt,” says the company sources.
Investment bankers appointed to the issue are Axis Capital and JM Financial while Link Intime India is the registrar to the offer.