The TechEra Engineering IPO is a book-built issue valued at Rs 35.90 crores, consisting entirely of a fresh issue of 43.78 lakh shares.
The IPO opens for subscription on September 25, 2024, and closes on September 27, 2024. The allotment is expected to be finalized on September 30, 2024, with the listing on the NSE SME tentatively set for October 3, 2024.
The IPO price band is between ₹75 and ₹82 per share, with a minimum application size of 1,600 shares. Retail investors must invest at least ₹131,200, while HNIs need a minimum of two lots (3,200 shares), totaling ₹262,400.
Below are the details of TechEra Engineering IPO Details, Timeline, Lot Size, Anchor Investor, and Promoter Holding.
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TechEra Engineering IPO Details
| IPO Date | September 25, 2024 to September 27, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹75 to ₹82 per share |
| Lot Size | 1600 Shares |
| Total Issue Size | 4,377,600 shares (aggregating up to ₹35.90 Cr) |
| Fresh Issue | 4,377,600 shares (aggregating up to ₹35.90 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 12,143,325 |
| Share holding post issue | 16,520,925 |
TechEra Engineering IPO Timeline
| IPO Open Date | Wednesday, September 25, 2024 |
| IPO Close Date | Friday, September 27, 2024 |
| Basis of Allotment | Monday, September 30, 2024 |
| Initiation of Refunds | Tuesday, October 1, 2024 |
| Credit of Shares to Demat | Tuesday, October 1, 2024 |
| Listing Date | Thursday, October 3, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 27, 2024 |
TechEra Engineering IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1600 | ₹131,200 |
| Retail (Max) | 1 | 1600 | ₹131,200 |
| HNI (Min) | 2 | 3,200 | ₹262,400 |
Reservation Details
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | 12,46,400 (28.47%) |
| Market Maker Shares Offered | – |
| QIB Shares Offered | 8,32,000 (19.01%) |
| NII (HNI) Shares Offered | 8,43,200 (19.26%) |
| Retail Shares Offered | 14,56,000 (33.26%) |
| Total Shares Offered | 43,77,600 (100%) |
TechEra Engineering IPO Anchor Investors
| Bid Date | September 24, 2024 |
| Shares Offered | 1,246,400 |
| Anchor Portion Size (In Cr.) | 10.22 |
| Anchor lock-in period end date for 50% shares (30 Days) | October 30, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | December 29, 2024 |
TechEra Engineering IPO Financial Information
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||
| Assets | 37.24 | 39.21 | 21.36 | |||||||||||||||||||||||||||
| Revenue | 39.08 | 26.59 | 7.37 | |||||||||||||||||||||||||||
| Profit After Tax | 4.82 | 1.31 | -6.29 | |||||||||||||||||||||||||||
| Net Worth | 15.9 | 11.08 | 9.78 | |||||||||||||||||||||||||||
| Reserves and Surplus | 3.76 | -2.72 | -4.02 | |||||||||||||||||||||||||||
| Total Borrowing | 14.3 | 13.77 | 8.87 | |||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||
TechEra Engineering IPO Review
TechEra Engineering Ltd. (TEL), established in October 2018, specializes in the design, manufacture, and supply of precision tooling and components for the aerospace and defense industries. Their product portfolio includes assembly toolings, MRO toolings, and precision machined components, utilizing advanced manufacturing technologies such as 5-axis machining and 3-D modeling.
The company, certified with ISO 9001:2015 and AS9100D:2018, is positioned within a complex market characterized by high capital investment and technological advancements. TEL is launching its IPO of 4,377,600 equity shares at a price band of ₹75 to ₹82, with subscription open from September 25 to 27, 2024. The funds raised will be directed towards capital expenditures, working capital, and debt repayment.
Financially, TEL has seen significant growth, with total income increasing from ₹7.37 crores in FY22 to ₹39.08 crores in FY24, though concerns about the sustainability of margins remain. With a current P/E ratio of 28.08 based on FY24 earnings, the IPO appears fully priced. While no dividends have been declared, the company maintains a prudent approach towards future payouts.
Compared to peers like Paras Defence and Azad Engineering, which trade at higher P/E ratios, TEL’s valuation is more favorable, though direct comparisons may be challenging. Overall, TEL presents a compelling investment opportunity for well-informed investors considering moderate allocations for the medium term.