Stellar Debut! TechEra Engineering shares list at ₹125 on NSE SME, 52.5% premium over IPO price

IPO Listing: TechEra Engineering (India) made a stellar stock market debut on Thursday, 3 October, as its shares were listed at ₹125 each on NSE SME, a premium of 52.5% over the issue price of ₹82. 

The SME IPO, valued at ₹35.90 crore, was open for subscription from September 25 to September 27. The issue was priced between ₹75 and ₹82 apiece.

The IPO consisted solely of a fresh issue of 43.78 shares, without any offer-for-sale component. It garnered strong interest, achieving an overall subscription of 70 times. Notably, the non-institutional investor (NII) segment was oversubscribed by 128.88 times, while the retail portion saw an oversubscription of 66.52 times. The qualified institutional buyer (QIB) portion was booked at 31.22 times.

The company proposes to utilise the net proceeds for several key purposes. The primary objective is to fund capital expenditures for the purchase of new machinery, which will enhance operational efficiency. Additionally, the proceeds will be used to meet the company's working capital requirements, ensuring sufficient liquidity for day-to-day operations.

About TechEra Engineering

TechEra Engineering (India) Limited, established in October 2018, designs, manufactures, and supplies precision tooling, components for the aerospace and defence industries, and automation system solutions.

The company's product portfolio includes assembly toolings, jigs, fixtures, maintenance, repair, and overhaul (MRO) toolings, ground support equipment, and precision machined components. It utilises advanced manufacturing technologies, such as 5-axis machining and 3-D modelling for design visualisation, to meet the requirements of its target sectors.

The company has participated in notable projects, including the manufacture of tooling for the commercial aircraft vertical fin assembly line and fighter wing skin layup tool, indicating its capability to execute complex engineering projects. It aims to contribute to technological advancement and the upliftment of the sectors it serves through continuous improvement and innovation in its processes and offerings, according to the RHP report.

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