Multibagger listing: Tempsens Instruments shares rally over 111% on debut

Shares of Rajasthan-based Tempsens Instruments (India), a manufacturer of contact and non-contact temperature sensors, made a multibagger debut on the exchanges on Friday, August 28, with the stock listing at more than double its issue price.

The shares listed at Rs 634 on NSE, marking a premium of 111.33 per cent over the issue price of Rs 300 per share. On BSE, the stock debuted at Rs 631.20, a premium of 110.40 per cent over the issue price.

The company's initial public offering (IPO) had received strong demand during its subscription period from August 20 to August 24. The issue was subscribed 184.07 times overall, with bids received for 2,79,44,36,850 shares against 1,51,81,667 shares on offer.

The Non-Institutional Investors (NII) category was subscribed 314.44 times, while the Qualified Institutional Buyers (QIB) portion saw 302.88 times subscription. The employee reserved portion was subscribed 124.94 times, and the retail category received 60.69 times subscription.

Tempsens Instruments had fixed a price band of Rs 285-300 per share for the IPO, which was aimed at raising around Rs 650 crore.

Before the issue opened for subscription, the company raised Rs 194.5 crore from anchor investors on August 19. It allotted 64.84 lakh equity shares to 29 anchor investors, including Aranda Investments, owned by Singapore's Temasek Holdings, Goldman Sachs and Ashoka WhiteOak Emerging Markets Equity Fund, managed by Prashant Khemka's Ashoka WhiteOak.

The IPO comprised a fresh issue of Rs 95 crore and an offer for sale (OFS) of 1.85 crore shares worth Rs 555 crore. The OFS was offered by existing shareholders, including Amit Talesara, Puneet Talesara and Chandra Prakash Talesara.

Tempsens Instruments plans to use Rs 18 crore from the fresh issue proceeds towards capital expenditure for its electrical heating solutions and specialised cable solutions. Another Rs 55 crore has been earmarked for prepayment or scheduled repayment of outstanding borrowings. The balance is intended for general corporate purposes.