Tempsens Instruments IPO fully subscribed in first hour; GMP surges to 77%
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The ₹650-crore initial public offering (IPO) of Tempsens Instruments (India) was fully subscribed within the first hour of bidding on Thursday, driven by strong demand from non-institutional and retail investors. Shares of the thermal engineering and specialised cable manufacturer have also generated significant buzz in the grey market, with the grey market premium (GMP) indicating a potential listing gain of nearly 77%.
The Tempsens Instruments IPO received bids for 1.94 crore equity shares against 1.52 crore shares on offer, translating into an overall subscription of 1.28 times, according to NSE data.
The exchange data showed that the non-institutional investor (NII) portion was subscribed 2.33 times, while the retail portion was subscribed 1.54 times. The employee quota was subscribed 2.90 times.
The qualified institutional buyer (QIB) portion, however, saw muted demand, with bids for only 6,300 shares against 43.23 lakh shares reserved for the category.
The three-day IPO, which opened for bidding on Thursday, will close on August 24. The price band has been fixed at ₹285-300 per share, with a lot size of 50 shares, requiring a minimum investment of ₹15,000 at the upper price band. The company is scheduled to list on both the NSE and BSE on August 28.
GMP signals strong listing
Tempsens Instruments' grey market premium stood at ₹230 as of August 20, according to InvestorGain. At the upper price band of ₹300, the GMP indicates an estimated listing price of around ₹530, implying a potential premium of 76.67% over the issue price.
However, grey market premiums are unofficial and can change sharply before listing and should not be considered a reliable indicator of the stock's actual listing price.
The Tempsens Instruments IPO comprises a fresh issue of 31.67 lakh shares worth ₹95 crore and an offer for sale (OFS) of 1.85 crore shares aggregating ₹555 crore.
The company plans to use ₹18.13 crore of the fresh issue proceeds to fund capital expenditure for its electrical heating and specialised cable businesses, while ₹55 crore will be used for the prepayment or repayment of outstanding borrowings. The remaining proceeds will be used for general corporate purposes.
Ahead of the IPO, Tempsens Instruments raised ₹194.54 crore from anchor investors. The company allotted 64.85 lakh shares to anchor investors at ₹300 apiece.
The anchor book saw participation from several prominent institutional investors, including SBI Mutual Fund, HDFC Mutual Fund, Nippon India, Kotak Mahindra, Goldman Sachs Funds, Aditya Birla Sun Life Mutual Fund, Motilal Oswal, 360 ONE, ValueQuest and Edelweiss.
Of the total anchor allocation, 37.22 lakh shares were allotted to eight domestic mutual funds through 14 schemes.
Established in 1990, Tempsens Instruments manufactures temperature sensors, electrical heating solutions and specialised cables. Its product portfolio includes both contact and non-contact temperature-sensing solutions.
According to the F&S report cited in the IPO documents, the company was India's largest manufacturer of contact and non-contact temperature sensors by revenue as of March 31, 2026, with an estimated 10.5% share of the temperature sensor market.
The company is also the only Indian manufacturer of non-contact temperature sensors, according to the report, with an estimated 21.3% share of the segment in FY26.
Tempsens has served more than 1,000 unique customers between April 2023 and March 2026 and exports its products to more than 80 countries, including the UAE, Germany and Poland.
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