Teja Engineering Industries Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹220
Per ShareLot Size
600 Shares
Minimum Investment
₹1,32,000
Issue Size
₹37.36 Cr
Face Value
₹10
Per ShareIPO Type
Fixed Price - SME
Retail Quota
50%
QIB Quota
0%
NII Quota
50%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Teja Engineering Industries Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
91.33%
Promoter Holding (Post-Issue)
67.17%
Issue Type
Fixed Price - SME
ISIN
INE0R1301019
About the Company
The company provides services across Operation & Maintenance (O&M) including Annual Maintenance Contracts (AMC), Erection & Commissioning (E&C) including project works, installation of stainless-steel tubing, Overhauling, Decommissioning & Recommissioning. We also undertake instrument calibration, non-destructive thickness testing of pressure vessels, and testing and servicing of safety relief valves (SRVs). We operate in the Oil & Gas, Power, and Energy sectors, supporting OEMs, CNG compressor packagers, and public sector undertakings involved in gas distribution and energy infrastructure. With a network extending across India, we provide technical knowledgeable manpower and execution support for CNG stations, gas compression plants, and natural gas distribution terminals. The company's role is to ensure smooth and efficient operation of energy infrastructure, though it does not manufacture equipment itself.
Industry Overview
The Indian economy underwent significant structural reforms during this period, boosting its macroeconomic foundations. These measures propelled India to become the fastest-growing economy among G20 nations. Further, efficient handling of the COVID-19 pandemic and recent geopolitical challenges has ensured that the Indian economy continues to outperform its global peers. Current estimates suggest a growth of 7.3% in 2023-24, building on the impressive 9.1% (FY22) and 7.2% (FY23) growth in the preceding two years. It is commendable that India is expected to post a GDP growth rate of over 7% for the third year in a row while the global economy is struggling to post a 3% growth. India's robust external sector demonstrating resilience in challenging times: India's external sector displays resilience with robust merchandise and services exports. Merchandise exports reached a record high of US$ 451.1 billion in FY23, while services exports, especially in software, consistently contribute significantly. The nation's trade balance improved, witnessing a US$ 166.4 billion surplus in April-November 2023. Remittances, totaling US$ 125 billion in 2023, contribute to the current account balance, maintaining a comfortable position. India attracts foreign investment, with foreign portfolio investors (FPIs) increasing exposure by US$ 28.8 billion in H1 FY24. The country remains a preferred Foreign Direct Investment (FDI) destination, achieving a cumulative FDI of US$ 596.5 billion during FY15-FY23. Stable macroeconomic factors and a positive global perception attract investors. The Indian rupee remains stable against the US dollar, and foreign exchange reserves reach US$ 623.2 billion, covering over ten months of imports. Challenges, such as geopolitical tensions and rising shipping costs, pose risks. While the share of exports in GDP may moderate in FY24 due to global demand slowdown, sustained FDI inflows and confidence in the Indian economy are anticipated. Remittances are expected to grow by 8%, reaching US$ 135 billion in 2024, contributing to India's economic stability. Continued focus on enhancing social infrastructure: The Union government's spending on social services saw a Compound Annual Growth Rate (CAGR) of 5.9% from FY12 to FY23, with an 8.1% CAGR in capital expenditure, indicating the development of societal assets. Initiatives like the Ujjwala Yojana, PM-Jan Aarogya Yojana, PM-Jal Jeevan Mission, Ayushman Bharat scheme, and PM-AWAS Yojana prioritize universal access to basic amenities. This approach, distinct from short-term measures, not only constructs lasting social infrastructure but also elevates individuals to improved living standards and opportunities, fostering empowerment among previously underserved segments of the Indian population.
Company History
Our Company was incorporated as "Teja Engineering Industries Private Limited", a private limited company under the Companies Act, 2013 vide Certificate of Incorporation date April 17, 2023 bearing Corporate Identification Number U33122GJ2023PTC140188 issued by Registrar of Companies, Central Registration Centre. Subsequently our company converted into public limited Company, pursuant to a special resolution passed by the shareholders of our company at the Extra Ordinary General Meeting held on September 09, 2023 and consequently the name of our Company was changed to "Teja Engineering Industries Limited" and a fresh certificate of incorporation was issued by the Registrar of Companies, ROC Ahmedabad dated September 19, 2023. The Corporate Identification Number of our Company is U33122GJ2023PLC140188.
Growth Strategy
- Our Company is enhancing its service portfolio by introducing per-unit gas compression solutions through Gas Engine Driven Reciprocating Compressor Packages (20,000 SCMD).
- Our Company is Focused Towards Strengthening Long-Term Operations & Maintenance Contracts to Ensure Reliable Service Delivery in the Oil & Gas Sector.
- We are focusing on expanding our Pan-India presence and strengthening the execution capacity of our company.
- Our Company is Focusing on Building Long-Term Client Relationships with Comprehensive Solutions.
- Our Company is focusing on strengthening operational efficiency through vehicles and equipment upgrades.
Financial Performance
Revenue, profit after tax and total assets across the last 2 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public issue of 16,98,000 equity shares of face value of Rs. 10/- each of Teja Engineering Industries Ltd ("TEIL" or the "Company" or the "Issuer") for cash at a price of Rs. 220 per equity share including a share premium of Rs. 210 per equity share (the "Issue Price") aggregating to Rs. 37.36 ("the Issue"), of which 85,200 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 220 per equity share including a share premium of Rs. 210 per equity share aggregating to Rs. 1.87 will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e., Net issue of 16,12,800 equity shares of face value of Rs. 10/- each at a price of Rs. 220 per equity share aggregating to Rs. 35.48 Crores is herein after referred to as the "Net Issue". The issue and the net issue will constitute 26.46% and 25.13% respectively of the post issue paid up equity share capital of the company. Offer Price: Rs. 220 per equity share of face value of Rs.10/- each. The offer price is 22 times the face value of the equity shares. Bid can be made for a minimum of 1200 equity shares and in multiples of 600 equity shares thereafter.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Extensive Pan-India Presence of our Company enabling wide market access and service coverage to our Business.
- Commitment to Quality and Industry Accreditations.
- Experienced Leadership with Extensive Domain Knowledge.
- Strong Customer Relationships as a Key Business Strength.
- We could incur additional cost or loss in revenue in connection with our failure to comply with all our commitments in our customer contracts.
- Our Company has acquired the ongoing business of M/s. Teja Engineering Services, a Proprietorship Concern through Business Transfer agreement. If, any of our assumptions, calculations is/are erroneous, it will have adverse effect on our business operations, liquidity and profitability.
- We have very short span of operating history as company. Which makes it difficult to assess our future prospects and historic growth rates or results of operations and which may not be representative or reliable indicators of our future performance.
- We have to undertake the hazardous operations in carrying out the construction of CNG Gas Pump station on turnkey basis. Hazards operations can cause personal injury and loss of life, severe damage to and destruction of property and equipment, environmental damage and may result in the suspension of operations and the imposition of civil and criminal liabilities.
- We have not yet placed orders in relation to the capital expenditure to be incurred for the proposed purchase of equipment / machineries. In the event of any delay in placing the orders, or in the event the vendors are not able to provide the equipment / machineries in a timely manner, or at all, the same may result in time and cost over-runs.