Tempsens lists at a premium

A new listing today and this one delivered a blockbuster debut. Tempsens Instruments listed at a massive premium despite the broader market mood being cautious. As against the IPO price of Rs. 300, the stock opened on the BSE at Rs. 631.20, rose to Rs. 635 and is now trading at Rs. 610 levels, still up over 103% from the issue price, though it has cooled around 3% from its listing/opening level.

The IPO had met with a spectacular response, with overall subscription at 184x. HNIs led the demand with their portion subscribed 314x, closely followed by QIBs at 303x, while Retail was subscribed 61x and Others 125x.

Tempsens Instruments is a 36-year-old Udaipur-based manufacturer of contact and non-contact temperature sensors and electrical heaters used across power, petrochemical and metal industries. It is among India’s largest temperature sensor makers and is stated to be India’s only non-contact temperature sensor manufacturer, commanding a 21% market share.

In our IPO Analysis, we had concluded - Tempsens Instruments’ business fundamentals and IPO pricing are both attractive and we recommend ‘applying’ in the IPO. The listing has clearly validated that view, though after a more than 100% debut gain, the stock could see near-term profit booking before fundamentals again take over.