Tega Industries Limited, global leader in the design & production of consumables for the mineral beneficiation, mining & bulk solids handling industry has filed for initial public offer of Rs 700-750 crore with the market regulator, according to market sources.
The issue will be a complete Offer for Sale (OFS) of 1,36,69,478 Equity Shares of face value of Rs. 10 each by Promoter and Investor Selling Shareholders. Details of OFS are "Promoter Selling Shareholders" 33,14,657 Equity Shares by Madan Mohan Mohanka, up to 6,62,931 equity shares by Manish Mohanka and up to 96,91,890 by Wagner Limited, an affiliate of the US-based private equity firm TA Associates. The Company will not receive any proceeds from the Offer since it involves only the Offer for Sale.
The portion reserved for Qualified Institutional Buyers will be upto 50% of the offer, Non-Institutional Investors to have upto 15% of the portion reserved while upto 35% will be reserved for the Retail Investors. The Equity Shares offered are proposed to be listed on the BSE & NSE Stock Exchanges.
Headquartered in Kolkata, India, Tega offers a range of abrasion and wear resistant products and services required for mining, mineral processing, screening, grinding, material handling and beneficiation of minerals. Tega's philosophy is to uphold traditional values through the empowerment of professionals, providing technical and economically unrivalled solutions to complex problems in mining, beneficiation, power, material handling and engineering.
Between FY19 to FY21, it's Earnings before interest, tax, depreciation and amortization (EBITDA) has grown at a CAGR of 50.04% and Return on capital employed has almost doubled.
As per the F&S Report quoted in the DRHP, Globally, it is the second largest producers of polymer-based mill liners in terms of revenues for calendar year 2020, in a near oligopolistic market structure. Present across the value chain of a mineral processing site, providing a wide range of products and solutions for processing across different stages of mineral processing.
With an extensive global footprint in over 70 countries, Tega's focus end-customers are mineral processing sites involved in gold and copper ore beneficiation accounting for 34.92 % and 27.25 % respectively, of its revenue from sale of products. It has manufacturing operations at Dahej in Gujarat and at Samali and Kalyani in West Bengal, and our international manufacturing operations are in proximity to the world's major copper and gold mining locations in Chile, South Africa and Australia, with a total built-up area of 74255 Sq. mts.
Additionally, its DRHP states, despite some volatility in capital expenditure cycles for gold and copper mining sites, our business was not impacted, as a majority of our products were linked to the operating expenditure budget of a mining site and not capital expenditure.
Investment Bankers appointed to the issue are Axis Capital Limited, JM Financial Limited and Link Intime India Private Limited is the registrar to the offer.