Tega Industries Limited

About the company

Incorporated in 1976, Tega Industries (Tega) manufactures components of mining equipment. These components are used across different stages of mineral ore processing. Tega has six manufacturing sites: three in India and the other three strategically located in Chile, South Africa, and Australia. **Key Highlights** * Tega Industries manufactures specialized mining equipment components such as grinding mill-liners, chutes, pump parts, conveyors belts, etc, which are used in mineral processing. * Its product portfolio comprises more than 55 such mineral processing and material handling products. * These components are critical to Tega’s clients as they not only help to improve operational efficiency of the mineral processing but also reduce the production downtime.  * Further, as these products wear and tear over time, they help to generate recurring revenue. * Globally, Tega is the second-largest producer of polymer-based mill liners. In 2020, it had a 5% market share in the overall global mill-liner market, up from 3% in 2018.  * In Fiscal 2021, it derived around 86% of its revenue from outside India. Its order book, as on June 2021, stood at ₹316 crore, about 40% of its FY21 revenues.    * Meanwhile, the large international revenue base exposes Tega to geo-political risks and currency fluctuations.  * Tega has a strong outreach with 18 global and 14 domestic sales offices. It had presence in 513 installation sites in over 70 countries at the end of fiscal 2021. * The mill-liner market is expected to grow at about 6% CAGR between 2020 and2030 to around $3 billion (or ₹22,500 crore). In comparison to its global peers, Tega is the most efficient player in terms of EBITDA margins as well as returns on capital employed.  * The company started its operations in 1978 in India in collaboration with Skega AB, Sweden. **Financial Information** Here’s a look at the company’s financial status: **Particulars**| **FY21**| **FY20**| **FY19** ---|---|---|--- **Revenue from Operations**|805.5|684.8|633.7 **Profit after Tax**|136.4|65.5|32.7 **Strengths** * High repeat revenue of about 75% due to replacement demand.  * 60% of revenue comes from gold and copper ore processing sites.  * These metals have different demand cycles and hence provide stability to the revenue.  * High client diversification with top 10 customers accounting for less than 30% of total revenue. * Tega is one of the most efficient players globally with operating margins of around 28% and return on capital employed of about 24% in FY21. **Risks** * Business presence in over 70 countries exposes it to currency fluctuations and geo-political risks.  * Failure to manage its vast production and distribution network could hamper business growth.  * Loss of a long-term marquee customer(s) may result in loss of business in an industry, which has high entry barriers. **Opportunities** * Gold and copper ore processing is expected to grow at 6% CAGR to $3 billion over the next 10 years. * Strategically located manufacturing sites are positioned in key mining belts to leverage the growth of its clients.   * Interestingly, declining grades of copper ore require more processing material. This is expected to boost demand for Tega’s products.

Financial performance (₹ Cr)

IPO Roadmap / Timeline

1. IPO Opens

   Completed
   01 Dec 2021

   Bidding starts for all investor categories

2. IPO Closes

   Completed
   03 Dec 2021

   Last day to place your bid

3. Basis of Allotment

   Completed
   03 Dec 2021

   Share allotment finalised

4. Refund Initiation

   Completed
   09 Dec 2021

   Refunds credited for non-allottees

5. Credit to Demat

   Completed
   08 Dec 2021

   Allotted shares credited to demat account

6. Listing on Exchange

   Completed
   13 Dec 2021

   Shares list on NSE / BSE

Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.