1 week ago
Tempsens Instruments IPO Closes With 184x Subscription, GMP Near 97%
Tempsens Instruments sold shares to the public in a ₹650-crore IPO.
The offer received far more applications than the number of shares available.
Overall, investors subscribed more than 184 times the shares offered.
Large investors and non-institutional investors showed especially strong demand.
The share price was set between ₹285 and ₹300.
In unofficial grey-market trading, the shares were priced much higher than ₹300.
This suggested a possible listing gain, but grey-market prices can change and are not guaranteed.
Some brokerages liked the company’s growth, products and international business.
They also said the IPO was expensive, so long-term investors should consider the risks.
Tempsens Instruments’ ₹650-crore IPO closed after receiving 184.07 times overall subscription, with bids for 279.44 crore shares.
Non-institutional investors subscribed 314.44 times, QIBs 302.88 times, retail investors 60.69 times and employees 124.95 times.
The issue had a ₹285–₹300 price band, a 50-share lot size and a minimum upper-band investment of ₹15,000.
Grey-market premiums were reported between ₹290 and ₹313 per share, suggesting potential gains of roughly 97% to 104%, but GMP is unofficial.
Brokerages recommended subscribing for the long term while warning that the IPO valuation was fully priced or at a premium.
- Who
- Tempsens Instruments (India) Limited, investors, anchor investors and brokerages reviewing the IPO.
- What
- A ₹650-crore IPO comprising a ₹95-crore fresh issue and a ₹555-crore offer for sale.
- Where
- The Udaipur-based company proposed listing its shares on the BSE and NSE.
- When
- Bidding ran from August 20 through August 24, 2026; allotment was expected on August 25 and listing on August 28.
- Why
- The company planned to use proceeds for expansion, capital expenditure, debt repayment and general corporate purposes.
Reasons to Consider Applying
Reasons for Caution
Business and growth
Reasons to Consider Applying
Brokerages highlighted strong revenue and profit growth, a diversified portfolio of temperature-sensing, electrical-heating and specialised-cable products, industrial applications and expanding international operations.
Reasons for Caution
The company operates in a specialised industrial segment, and its investment case depends on sustaining its reported growth and overseas expansion.
Valuation
Reasons to Consider Applying
KC Securities said the premium valuation could be justified by Tempsens’ growth, niche positioning and segment leadership; Anand Rathi and other brokerages recommended subscribing for the long term.
Reasons for Caution
Anand Rathi described the valuation as fully priced at the upper band, citing a FY26 P/E of 35.4 times and EV/EBITDA of 25.64 times; KC Securities cited a 37.3-times FY26 P/E.
Expected listing gains
Reasons to Consider Applying
Reported grey-market premiums of ₹290–₹313 per share suggested that the shares could list substantially above the ₹300 upper price band.
Reasons for Caution
Grey-market trading is unofficial and fluctuates with investor sentiment, so it may not accurately predict the actual listing price.
Key facts
- Final subscription
- 184.07 times overall, based on bids for 279.44 crore shares against 1.51 crore shares offered
- Investor demand
- NIIs: 314.44x; QIBs: 302.88x; retail: 60.69x; employees: 124.95x
- Issue size
- ₹650 crore, including a ₹95-crore fresh issue and ₹555-crore offer for sale
- Price and lot
- ₹285–₹300 per share; 50 shares per lot; ₹15,000 minimum at the upper band
- Grey-market premium
- Reports cited premiums from ₹290 to ₹313 per share, implying approximately 97% to 104% potential listing gains
- Use of proceeds
- ₹18.13 crore for capital expenditure, ₹55 crore for borrowing repayment, with the balance for expansion and general corporate purposes
- Expected listing
- August 28, 2026, on the BSE and NSE
Quotes
KC Securities
Brokerage firm that recommended subscribing to the IPO.
“At the upper price band of ₹300, the issue is valued at 37.3x FY26 P/E, which is at a premium but can be justified by its superior growth, niche positioning and leadership in the segment.”
livemint.com
“Given its strong revenue growth, diversified product portfolio and expanding international presence, the company may command a valuation premium.”
livemint.com
Sources
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