Tempsens Instruments IPO opens at ₹285-300 band. Anchor allocation worth ₹194.54 crore completed. Analysts cite market leadership, working-capital risks, and fully priced valuation.
Alpha Score of 56 reflects moderate overall profile with moderate momentum, moderate value, moderate quality, moderate sentiment.
The ₹650-crore initial public offering of Tempsens Instruments (India) opened for subscription today at a price band of ₹285-300 per share. The issue closes Monday, August 24. Investors can bid for a minimum of 50 equity shares and in multiples of 50 thereafter.
The offer comprises a fresh issue of up to ₹95 crore and an offer-for-sale of up to 1.85 crore shares from promoter group selling shareholders, including Amit Talesara, Puneet Talesara, Chandra Prakash Talesara, Ankit Talesara, and Nirmal Kumar Pande.
Up to 50% of the net offer is reserved for qualified institutional buyers, with at least 15% for non-institutional bidders and at least 35% for retail individual bidders.
The company on Wednesday raised ₹194.54 crore from anchor investors by allocating 64,84,999 equity shares at ₹300 each. Marquee institutional participants include Aranda Investments Pte. Ltd., SBI Mutual Fund (Resurgent India Opportunities Scheme), HDFC Mutual Fund, Nippon Life India Trustee (Nippon India Small Cap Fund), Goldman Sachs Funds (India Equity Portfolio), Ashoka WhiteOak ICAV, Aditya Birla Sun Life Mutual Fund, Motilal Oswal, 360 ONE, and ValueQuest India, among others.
The company is a thermal engineering and specialized cable manufacturer, designing and making customized temperature sensing solutions, electrical heating solutions, and specialized cables. The Frost & Sullivan report cited in the offer document says Tempsens is the largest manufacturer of contact and non-contact temperature sensors in India by revenue as of March 31, 2026, with a market share of about 10.5% in the temperature sensor segment. It is also the only Indian manufacturer of non-contact temperature sensors as of that date, holding about 21.3% of that market.
The company plans to use ₹18.134 crore of the net proceeds for capital expenditure on its electrical heating and specialized cable solutions. Another ₹55 crore will go toward prepayment or scheduled repayment of some outstanding borrowings. The balance will fund general corporate purposes.
ICICI Securities and JM Financial are the book-running lead managers. KFin Technologies is the registrar. The equity shares are proposed to list on BSE and NSE.
Analyst views
Anand Rathi said the issue is priced at an implied P/E of 35.4x and EV/EBITDA of 25.64x on FY26 earnings at the upper price band. The brokerage noted the company's strong revenue growth, diversified product portfolio, and expanding international presence, but said the IPO valuation "appears fully priced at the upper band." It assigned a "Subscribe: Long Term" rating.
SBI Securities recommended investors "Subscribe" at the cut-off price. The brokerage cited the company's market leadership, high entry barriers from certifications and customer qualification processes, and a healthy balance sheet with a debt-to-equity ratio of 0.2x. Over FY24-FY26, Tempsens delivered revenue, EBITDA, and PAT (post-minority interest) compound annual growth rates of 27.2%, 35.2%, and 28.2%, respectively. At the upper price band of ₹300, the issue is valued at an FY26 P/E of 37.3x on a post-issue basis. SBI Securities also flagged that the business is working-capital intensive, with inventory days rising from 76 in FY24 to 92 in FY26 and receivable days increasing from 61 to 70.
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