Ashoka India Equity Investment, Goldman Sachs and Elara India are among 14 anchor investors to infuse Rs 185.77 crore (around $25 million) in TA Associates-backed Tega Industries Ltd as part of its fundraising plan via an initial public offering (IPO).
The Kolkata-based mining firm is looking to raise Rs 619 crore through the IPO, which opened for subscription on Wednesday and will close on December 3. It plans to list on exchanges on 13 December.
Tega Industries issued 4.10 million shares to the anchor investors at the upper end of the price band of Rs 443-453 apiece to 14 anchor investors on Tuesday, the company said.
Including the above three investors, Kuber India Fund, Elara India, and BNP Paribas Arbitrage cumulatively subscribed to over a third of the anchor issue.
Eight domestic mutual funds through 19 schemes invested to purchase 2.58 million shares for Rs 116.77 crore ($15.6 million), which is close to two-third (or 62.86%) of the total amount raised in the anchor round.
The mutual funds that participated in the round were State Bank of India (SBI), ICICI, HDFC, Axis, Aditya Birla, Mirae, Tata and Kotak.
Anchor investors, also known as cornerstone investors, are institutions that accept a one-month lock-in for a sizeable allocation of shares.
Its public issue is entirely an offer-for-sale (OFS) of as much as 13.67 million shares by promoters and investors. Promoter Madan Mohan Mohanka will sell up to 3.32 million equity shares and 0.66 million shares will be sold by Manish Mohanka.
TA Associates, through its affiliate Wagner Ltd, will be completely exiting the firm by selling 9.69 million shares.
With this, the US-based private equity firm is set to triple its investment which is more than a decade-old now. TA Associates had invested around Rs 180 crore in 2011.
Currently, Madan Mohan and Manish Mohanka own 13.07% and 11.98% stake, respectively in the firm. TA Associates holds 14.62% stake in the company.
Founded in 1976, Tega Industries is engaged in manufacturing, designing and distribution of consumable products for global mineral beneficiation, mining and bulk solids-handling industry.
It has 55 mineral processing and material-handling products in its portfolio. In India, three manufacturing sites -- at Dahej in Gujarat and Samali and Kalyani in West Bengal -- cater to the domestic and overseas markets. It also has three international sites in Chile, South Africa and Australia.
Tega’s operating revenue grew from Rs 633.8 crore in FY19 to Rs 805.5 crore in FY21 at an annualised rate of 12.7%, whereas the net income rose at a compound annual rate (CAGR) of over 100%, from Rs 32.7 crore to Rs 136 crore during the period.