Thermal Engineering Firm Tempsens’ ₹650-Crore IPO Subscribed 184 Times, Attracts ₹84,000 Crore in Bids

UDAIPUR — The initial public offering (IPO) of Tempsens Instruments (India) Ltd closed with a subscription of 184.07 times, drawing bids worth ₹83,834 crore across all investor categories.

The Udaipur-based thermal engineering and specialised cable manufacturer's ₹650-crore public issue received bids for 279.44 crore shares against the 1.518 crore shares on offer. The IPO was offered within a price band of ₹285 to ₹300 per share.

Market participants noted that the strong interest was largely driven by the grey market premium commanded by the stock, with some estimates indicating the stock was quoting at nearly twice its IPO price.

Due to the high subscription numbers, share allotment is expected to be competitive. According to final subscription figures, only one out of every 66 retail applicants is likely to receive an allotment of 50 shares. For high net-worth individuals, approximately one out of every 260 SHNI applicants may secure 700 shares, while two out of every 130 to 132 BHNI applicants are expected to receive 700 shares.

The company designs and manufactures temperature sensing solutions, electrical heating solutions, and specialised cables. The IPO structure comprised a fresh issue worth ₹95 crore and an offer for sale (OFS) of ₹555 crore.

Tempsens intends to utilise the net proceeds from the fresh issue for capital expenditure towards its electrical heating and specialised cable solutions, pre-payment or scheduled repayment of certain outstanding borrowings, and general corporate purposes.

Ahead of the public issue, Tempsens raised ₹194.54 crore from anchor investors. The list of institutional participants included Aranda Investments Pte. Ltd., SBI Mutual Fund, HDFC Mutual Fund, Nippon Life India Trustee, Kotak Mahindra Trustee, Goldman Sachs Funds, Ashoka WhiteOak ICAV, Aditya Birla Sun Life Mutual Fund, Motilal Oswal, 360 ONE, ValueQuest India, Edelweiss, Axis Max Life Insurance, and Kotak Mahindra Life Insurance Company.

ICICI Securities and JM Financial acted as the book-running lead managers for the issue.

For the financial year, Tempsens reported revenue from operations of ₹444.90 crore, marking a 17.5 per cent year-on-year increase, alongside a consolidated profit after tax (PAT) of ₹71 crore. The company holds an estimated 10.5 per cent market share in India’s temperature sensor segment and operates as the sole Indian manufacturer of non-contact temperature sensors, where it maintains a 21.3 per cent market share.

"The massive subscription figures for Tempsens Instruments reflect strong investor appetite for well-established manufacturing and engineering firms in the Indian public markets. When an issue attracts bids worth over ₹84,000 crore against a ₹650-crore offering, it highlights how liquidity is actively chasing companies with specialized market positioning, clear revenue visibility, and healthy financial metrics like Tempsens' 17.5 percent revenue growth. For founders and businesses looking at public listings, robust institutional backing through anchor investors often sets the right tone for retail participation and long-term valuation stability." — Dr. Shishir Gupta, Founder & CEO, StartupLanes