Tempsens Instruments IPO books 21.66x, GMP hits 104% of top band
Tempsens Instruments IPO books 21.66x, GMP hits 104% of top band
On Monday, the final day of bidding, Livemint reported that the Tempsens Instruments IPO secured a cumulative subscription of 21.66 times. At the same time, the grey‑market premium (GMP) surged to ₹330, equal to 104 % of the upper end of the ₹285‑₹300 price band, a level that could translate into a listing gain of roughly the same magnitude.
This combination of deep subscription and a premium that eclipses the top of the price range has investors re‑evaluating the likely opening price on the NSE and BSE. In a market where recent IPOs have seen far lower premiums, the figure signals strong confidence in Tempsens’ growth story.
Media additions
Subscription depth across investor classes
By 5 p.m. On the second day, the public issue had attracted 21.66‑fold demand overall. Retail investors subscribed 18.67 times, the non‑institutional (NII) segment 52.98 times, while qualified institutional buyers (QIB) were at 3.31 times. The split between fresh equity and an offer‑for‑sale (OFS) was also clear: ₹95 crore would be raised through a fresh issue of 32 lakh shares, and ₹555 crore would come from the OFS of 1.85 crore shares.
Analyst verdicts
Anand Rathi placed a “subscribe – long‑term” rating on the issue. In a note it said:
“Tempsens Instruments Limited, at an implied P/E of 35.4x and EV/EBITDA of 25.64x on FY26 earnings at the upper price band. Given its strong revenue growth, diversified product portfolio and expanding international presence, the company may command a valuation premium. The IPO valuation appears fully priced at the upper band and we initiate a ‘Subscribe: Long Term’ on the IPO.”
Anand Rathi, analyst note, via Livemint
KC Securities also gave a “subscribe” tag, noting that the issue is valued at 37.3‑times FY26 P/E at the ₹300 price point, a premium justified by “superior growth, niche positioning and leadership in the segment.”
Other broker houses – Adroit Financial Services, Ajcon Global Services, Arihant Capital Markets, BP Equities, Canara Bank Securities, Geojit Investments, GEPL Capital, Marwadi Shares & Finance, Swastika Investmart and Ventura Securities – echoed the recommendation to subscribe.
What the GMP tells investors
The Economic Times highlighted that a GMP “soaring past 100 %” is a strong signal of listing hopes. In the case of Tempsens, the premium of ₹330 translates to more than a full‑price‑band uplift, a rarity among recent offerings.
In contrast, the Investingcube piece on the Shankesh Jewelers IPO noted a GMP of roughly ₹5, equating to about 5 % of its upper price boundary. The ET Now analysis of various IPOs, from Lumino Industries to Hy‑Tech Engineers, observed GMPs of ₹270 and ₹22 respectively, underscoring that Tempsens’ ₹330 premium sits at the top end of the recent spectrum.
Use of proceeds
Tempsens plans to allocate ₹73.13 crore of the fresh‑issue proceeds to expansion initiatives. Specifically, ₹18.13 crore will fund capital expenditure for its electrical heating and specialised‑cable businesses, while ₹55 crore will be used to pre‑pay or schedule repayment of certain borrowings. The remaining funds will support general corporate purposes, giving the company flexibility to address broader operational needs.
Key dates – a quick timeline
- 20 August – IPO opens for subscription.
- 24 August – Final day of bidding; subscription reaches 21.66‑times, GMP at ₹330 (104 % of top band).
- 25 August – Allotment expected to be finalised.
- 28 August – Shares slated to list on NSE and BSE.
How Tempsens stacks up against peers
| Company | Price band (₹) | GMP (₹) | GMP as % of top band | Subscription multiple |
|---|---|---|---|---|
| Tempsens Instruments | 285–300 | 330 | 104 % | 21.66× |
| Shankesh Jewelers | 88–93 | 5 | ≈5 % | ≈2.8× |
| Hy‑Tech Engineers | — | 22 | — | , |
The table illustrates how the Tempsens premium dwarfs that of Shankesh Jewelers and even exceeds the aggressive premium recorded for Hy‑Tech Engineers.
What to watch next
- Listing price formation: With a GMP above the price band, the opening price could settle anywhere between the ₹300 ceiling and a modest premium above it.
- Debt reduction progress: Investors will monitor how swiftly the ₹55 crore earmarked for loan repayment is deployed.
- Revenue trajectory: The company’s FY26 earnings estimates (P/E 35.4× at the top band) will be scrutinised against actual performance post‑listing.
- Market sentiment: The broader IPO market, having shown strong average returns in H2, may influence secondary‑day price action.
As the issue moves from the book‑building phase to the first day of trade, the combination of a 21.66‑fold subscription and a GMP that more than matches the price band places Tempsens Instruments among the most eagerly watched offerings of the season. Whether the market’s optimism translates into a durable listing premium will become clear when the shares debut on 28 August.
