5 days ago
Tempsens Instruments Shares Debut With 110% Premium, Then Slip
Tempsens Instruments makes special sensors, heating products and cables for industrial customers.
Its shares began trading on Friday, 28 August, on the BSE and NSE.
The company sold the shares to IPO investors for ₹300 each.
They opened at more than ₹631, which was over twice the IPO price.
This was close to the price predicted by the grey market.
Later, some investors sold their shares to lock in profits, so the price came down.
Experts said the company has specialised products and opportunities to grow.
They also warned that the shares may already be expensive compared with the company’s earnings.
Tempsens Instruments shares debuted at ₹631.20 on the BSE and ₹634 on the NSE, more than 110% above the ₹300 issue price.
The shares later fell to ₹620.35 on the BSE and ₹611.25 on the NSE as investors booked profits.
The debut broadly matched the reported grey market premium of ₹330, which indicated a potential listing price near ₹630.
The IPO was subscribed 184 times, with a fresh issue worth ₹95 crore and an offer for sale worth ₹555 crore.
Experts cited Tempsens’ specialised products and growth prospects but differed on whether its premium valuation was justified.
- Who
- Tempsens Instruments (India) Ltd, its IPO investors, and market experts Mahesh M. Ojha and Tushar Badjate.
- What
- Tempsens Instruments shares listed at a premium of more than 110% to the ₹300 IPO price before giving up some gains.
- Where
- The shares listed on the BSE and NSE after a special pre-open session.
- When
- Friday, 28 August; trading began at 10:00 IST after allotment was finalised on Tuesday, 25 August.
- Why
- Strong investor demand was linked to the company’s specialised industrial products, reported financial growth and business prospects, although valuation remained a concern.
Bullish View
Cautious View
Business prospects
Bullish View
Mahesh M. Ojha said Tempsens has a strong position in a niche industry, customised products, established customer relationships, high entry barriers and opportunities from industrial automation, localisation, manufacturing and exports.
Cautious View
Tushar Badjate was also positive about the business but said investors should look beyond the grey market excitement and assess the company carefully.
Market position and products
Bullish View
Ojha cited estimated market shares of 10.5% in the overall temperature-sensor segment and 21.3% in non-contact temperature sensors, where he described Tempsens as the only Indian manufacturer.
Cautious View
Badjate emphasised that the company’s products serve critical sectors including steel, power, aerospace, electric vehicles and semiconductors, but said its certifications and long customer-qualification cycles should be considered alongside the valuation.
Valuation
Bullish View
Ojha said the premium valuation was supported by Tempsens’ growth profile, niche positioning and segment leadership, and said allotted investors with medium- to long-term horizons might consider holding.
Cautious View
Badjate said the business deserved a premium but cautioned that the IPO was valued at roughly 35 times FY26 earnings; Ojha separately estimated the valuation at about 37.3 times FY26 earnings.
Key facts
- Issue price
- ₹300 per share
- BSE debut
- ₹631.20, a 110.40% premium
- NSE debut
- ₹634.00, a 111.3% premium
- Later prices
- ₹620.35 on the BSE and ₹611.25 on the NSE after profit booking
- IPO subscription
- 184 times overall
- FY26 revenue
- ₹444.88 crore; experts also cited the rounded figure of ₹445 crore
- FY26 profit
- ₹67.35 crore attributable to owners of the parent; one expert cited approximately ₹71 crore
- IPO structure
- Fresh issue of ₹95 crore and offer for sale of ₹555 crore
Quotes
Tushar Badjate
Director at Badjate Stock & Shares Pvt. Ltd.
“The business clearly deserves a premium”
livemint.com
Sources
Related news
Tempsens Instruments Sets ₹650-Crore IPO for August 20
Tempsens Instruments Makes Blockbuster Debut With 96% Premium
Tempsens Instruments IPO Sees Strong Demand Despite Valuation Concerns
Tempsens Instruments IPO Set for Debut as GMP Soars
Tempsens Instruments IPO Closes With 184x Subscription, GMP Near 97%
Tempsens Instruments IPO Draws Strong GMP Amid Valuation Concerns
PVR Inox Buyback: September 3 Last Day to Buy
Augmont Enterprises Rises Despite Gold-Buying Appeal and Market Risks
BSE Shares Fall as New Closing Auction Session Draws Scrutiny
Spice Lounge Food Works Stock Hits Upper Circuit Amid Crash
Indian Stocks Slide as Oil, Conflict and Yields Rise
