Tempsens Instruments IPO Review

Tempsens Instruments IPO Review in 15 Lines

1. Tempsens Instruments IPO price band is Rs. 285–300, with a minimum retail investment of Rs. 15,000 for 50 shares.
2. GMP is around Rs. 220, indicating an estimated listing price of nearly Rs. 520 at the upper band.
3. The prevailing GMP implies a potential gain of approximately 73%, making the IPO highly attractive for listing gains.
4. However, GMP is unofficial and volatile; investors should monitor its trend and subscription demand until allotment.
5. Tempsens is an established thermal-engineering company with over 35 years of operating experience.
6. Its portfolio of temperature sensors, electrical heating systems and specialised cables provides good business diversification.
7. Exports to over 80 countries, customised engineering capabilities and technical entry barriers strengthen its business quality.
8. Total income increased from Rs. 278.04 crore in FY24 to Rs. 455.86 crore in FY26, reflecting strong growth.
9. PAT rose from Rs. 40.92 crore to Rs. 71.07 crore, while FY26 EBITDA and PAT margins stood at 24.83% and 15.59%.
10. A debt-to-equity ratio of 0.15 and ROCE of 21.61% indicate a healthy balance sheet and efficient operations.
11. At Rs. 300, the IPO is valued at approximately 34 times pre-IPO EPS of Rs. 8.81 and 4.87 times NAV of Rs. 61.66.
12. This valuation is not cheap, but appears acceptable considering its profitability, industrial positioning and growth record.
13. The sizeable OFS of 1.85 crore shares remains a concern because most IPO proceeds will go to selling shareholders.
14. Listing-gain guidance: Apply, subject to the GMP remaining firm and healthy QIB subscription during the issue period.
15. Long-term guidance: Selective Apply/Hold; suitable for investors accepting industrial-cycle risks, but avoid aggressive buying if listing occurs near the indicated GMP price.
16. Want to study the IPO details in depth? Click