Ahead of the IPO opening, the company raised ₹194.5 crore from anchor investors on August 19.
Tempsens Instruments allotted 64.84 lakh equity shares to 29 anchor investors, including Aranda Investments, owned by Singapore’s Temasek Holdings, Goldman Sachs and Prashant Khemka’s Ashoka WhiteOak ICAV – Ashoka WhiteOak Emerging Markets Equity Fund.
The company has fixed a price band of ₹285-300 per share and plans to raise around ₹650 crore through the IPO. At the upper end of the price band, investors will need to invest a minimum of ₹15,000, as the minimum bid lot is 50 shares.
The IPO has also generated strong interest in the grey market. Tempsens Instruments’ grey market premium (GMP) has risen to as much as 62% ahead of the issue opening.
However, investors should note that GMP is only an unofficial indicator of market sentiment in the unlisted market and can change rapidly. It does not guarantee the listing price or future performance of the stock.
The IPO comprises a fresh issue of ₹95 crore and an offer for sale (OFS) of 1.85 crore shares worth ₹555 crore by existing shareholders, including Amit Talesara, Puneet Talesara and Chandra Prakash Talesara. The total issue size stands at around ₹650 crore.
Brokerages bullish on Tempsens IPO
SBI Securities – Subscribe
SBI Securities has recommended subscribing to the IPO at the cut-off price, citing Tempsens Instruments’ strong position across temperature sensing solutions, electrical heating solutions and specialised cables.
The brokerage highlighted the company’s high entry barriers, driven by certifications, stringent customer qualification processes, engineering expertise and long-standing customer relationships across mission-critical industries.
Between FY24 and FY26, Tempsens delivered a 27.2% revenue CAGR, 35.2% EBITDA CAGR and 28.2% PAT CAGR, while maintaining a healthy balance sheet with a debt-to-equity ratio of 0.2x.
At the upper price band of ₹300, the IPO is valued at around 37.3 times FY26 P/E on a post-issue basis.
SBI Securities said that the business remains working-capital intensive, with inventory days increasing from 76 in FY24 to 92 in FY26 and receivable days rising from 61 to 70. However, it believes the company’s market leadership, diversified business model, export growth and strong financial profile offer a favourable risk-reward proposition.
Geojit – Subscribe
Geojit has also assigned a ‘Subscribe’ rating to the IPO for medium- to long-term investors.
At ₹300 per share, the company is valued at around 37 times FY26 P/E on a post-issue basis. Geojit highlighted Tempsens’ strong operational efficiency, healthy margins, growing international operations and long-standing customer relationships.
The brokerage also noted that repayment of debt from the IPO proceeds will leave the balance sheet virtually debt-free, providing room for sustained growth.
How Tempsens will use IPO proceeds
Of the ₹95 crore fresh issue, ₹18 crore will be used to fund capital expenditure for the company’s electrical heating solutions and specialised cable solutions.
Another ₹55 crore will be used for prepayment or scheduled repayment of outstanding borrowings, with the remaining proceeds earmarked for general corporate purposes.
Tempsens Instruments: Company overview
Tempsens Instruments (India) is an industrial engineering and instrumentation company that manufactures temperature sensing solutions, electrical heating systems and specialised cables for critical industrial applications.
Established in 1990, the company serves customers across metals and steel, petrochemicals, power, defence and nuclear, glass, plastics, automotive, pharmaceuticals and manufacturing.
Its three key business verticals are Temperature Sensing Solutions, Specialised Cables and Electrical Heating Solutions, which contributed 44.6%, 34.7% and 20.7%, respectively, to FY26 revenue excluding other operating revenue.
The company has an international presence through manufacturing facilities, subsidiaries and joint ventures across India, the UAE, Germany, Poland, Indonesia and South Korea.
Tempsens reported revenue from operations of ₹444.8 crore in FY26, compared with ₹274.8 crore in FY24. Net profit rose to ₹71 crore from ₹40.9 crore during the same period.
ICICI Securities and JM Financial are the book-running lead managers, while KFin Technologies is the registrar to the issue. The shares are scheduled to be listed on the BSE and NSE on August 28.
