Tempsens IPO closes today as GMP crosses 100%
What's the story
The initial public offering (IPO) of Tempsens Instruments has garnered strong investor interest on its third and final day of bidding. The issue has been subscribed over 38 times, with a gray market premium (GMP) suggesting a potential listing gain of up to 105%. The ₹650-crore IPO comprises a fresh issue of shares worth ₹95 crore and an offer for sale (OFS) worth ₹555 crore.
Investment specifics
Everything to know about the IPO
The Tempsens Instruments IPO is priced at ₹285-300 per share with a lot size of 50 shares.
At the upper end of the price band, retail investors will have to invest a minimum of ₹15,000 for one lot.
The issue closes today, with allotment expected tomorrow and listing on NSE and BSE on August 28, according to the schedule.
Market performance
What is the gray market trend?
The latest GMP for the Tempsens Instruments IPO is ₹313, which translates into a 105% premium over the upper price band of ₹300 per share.
This puts the estimated listing price at around ₹613 per share, indicating strong potential gains.
However, it's important to note that GMP is an unofficial market indicator and can fluctuate before shares start trading.
Fund allocation
Key details about the company's fundraising plans
Tempsens Instruments plans to use ₹73.13 crore of the net proceeds from the fresh issue to fund its growth and strengthen its balance sheet.
Of this, ₹18.13 crore will go toward capital expenditure for its electrical heating and specialized cable solutions businesses while ₹55 crore will be used toward prepayment/scheduled repayment of certain borrowings.
The remaining funds will be utilized for general corporate purposes, giving the company flexibility to meet broader business requirements.
Company profile
Strong financial performance in FY26
Tempsens Instruments (India) Limited, incorporated in 1990, is a thermal engineering and specialized cable manufacturer.
The company has witnessed strong financial performance with total income growing to ₹455.86 crore in FY26 from ₹382.47 crore in FY25, a 19% year-on-year growth.
It also recorded a 14% year-on-year increase in Profit After Tax (PAT), which rose to ₹71.07 crore in FY26 from ₹62.56 crore in FY25.