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Tempsens Instruments IPO starts trading at more than 110% premium
The stock debuted around ₹631 on the BSE and ₹634 on the NSE before paring gains to trade up about 107% and 104% from the ₹300 issue price, after a grey market premium of ₹330 signaled a list near ₹630.
Tempsens Instruments shares began trading on Indian exchanges Friday, 28 August, with the stock’s debut priced well above its IPO level. According to LiveMint Markets, the shares opened at ₹631.20 on the BSE, 110.40% above the ₹300 issue price, and at ₹634.00 on the NSE, 111.3% above the issue price.
The company’s early gains eased as profit booking set in. LiveMint Markets reported Tempsens Instruments traded at ₹620.35 on the BSE, up nearly 107% versus the issue price, and at ₹611.25 on the NSE, up 104% from the IPO price.
The listing price was broadly in line with expectations from the grey market. LiveMint Markets said the IPO grey market premium, or GMP, was ₹330 on Friday morning, implying a potential listing near ₹630 per share.
Tempsens Instruments is a thermal engineering and specialized cable manufacturer offering temperature-sensing solutions, electrical heating solutions, and specialized cables. LiveMint Markets added that the IPO comprised a fresh issue of 31,66,666 shares to raise ₹95 crore and an offer for sale of 18,500,000 shares for ₹555 crore, and it said net proceeds from the fresh issue are intended to fund capital expenditure for its electrical heating and specialized cable solutions, along with repayment of certain borrowings and general corporate purposes.