Tega Industries stock slips over 8% a day after stellar listing

Shares of Tega Industries fell over 8% in trade today a day after the mining industry player made a stellar debut on bourses.

Tega Industries stock lost 8.13% to Rs 667 against previous close of Rs 726.05. Market cap of the firm stood at Rs 4,503 crore on NSE. The share opened 1.66% lower at Rs 713.95.

The stock fell 7.98% to Rs 667.55 against the previous close of Rs 725.50 on BSE. Market cap of the firm slipped to Rs 4,511 crore on BSE. Total 1.99 lakh shares of the firm changed hands amounting to a turnover of Rs 13.82 crore.

The stock opened 3.01% lower at Rs 703.65 on BSE.

On Monday, Tega Industries share listed at a premium of 67% to the issue price. The firm made its market debut at Rs 760 per share (up 67.77 per cent) on the NSE against the IPO issue price of Rs 453. On BSE, the stock listed at Rs 753, 66.22% higher to the IPO price.

Aayush Agrawal, Sr. Research Analyst - Merchant Banking, Swastika Investmart said, "The fundamentals of the company are very sound whereas valuations are also attractive. It witnessed strong top-line and bottom-line growth with a rise in margins in recent years and it has healthy cash flows. The outlook for the industry is also bullish. Therefore, long-term investors should hold this company in their portfolios."

Post the stellar listing, Parth Nyati, Founder, Tradingo said, "The company might perform much better going forward if this momentum continues. New investors can wait for a dip to buy, while long-term investors should hold this stock. Those who have received the allotment should keep a stop loss of Rs 690."

The IPO was held from December 1 to December 3. It received a stellar response with the share sale subscribed 219.04 times on the last day.

The share sale received bids for 209.58 crore equity shares against an offer size of 95.68 lakh shares. The portion for qualified institutional buyers saw the highest ever subscription of 215.45 times at least in a decade.

Non-institutional investors placed bids for 666.19 times the portion set aside for them.

Retail investors submitted bids for 29.44 times their reserved portion. Shares were available in a price band of Rs 443 to Rs 453.

The company collected Rs 619 crore from the public issue that was entirely an offer-for-sale. Hence, the company will not get any money from the offer.

The objective of the offer was to achieve the benefits of listing the equity shares on the stock exchanges.

Kolkata-based Tega Industries offers comprehensive solutions to marquee global clients in the mineral beneficiation, mining and bulk solids handling industry, through its wide product portfolio.