Robust Demand for Tempsens Instruments IPO

The initial public offering (IPO) of Tempsens Instruments, a manufacturer of thermal engineering products and specialised cables, is witnessing robust investor interest as it enters its third and final day of bidding on August 24. By the end of Day 2, the issue was subscribed 21.66 times, according to data from The Economic Times.

Retail investors have shown particularly strong demand, with their reserved portion subscribed 18.67 times against the 75.65 lakh shares available for the segment. The overall subscription came on the back of strong participation from non-institutional investors (NII), whose portion was subscribed 52.98 times, while qualified institutional buyers (QIB) saw a subscription of 3.31 times.

In the grey market, shares of Tempsens Instruments are commanding a premium of 105%, suggesting strong listing-day gains. The estimated listing price is around Rs 613 per share, representing a significant jump from the upper end of the price band.

IPO Details and Structure

The company is looking to raise Rs 650 crore through the IPO, which consists of a fresh issue of 32 lakh shares amounting to Rs 95 crore and an offer for sale (OFS) of 1.85 crore shares totalling Rs 555 crore. The price band has been fixed at Rs 285 to Rs 300 per share, with a lot size of 50 shares. At the upper end, retail investors would need to invest a minimum of Rs 15,000 to participate.

The IPO, which opened on August 20, is scheduled to close on August 24. Allotment is expected on August 25, with shares proposed to list on the NSE and BSE on August 28, 2026. ICICI Securities Ltd. is the book-running lead manager, while KFin Technologies Ltd. is the registrar.

Ahead of the offer, Tempsens Instruments raised Rs 194.54 crore from 29 anchor investors, allotting 64,84,999 equity shares at Rs 300 apiece, according to a company stock exchange filing.

Use of Proceeds and Financial Performance

The company plans to use Rs 73.13 crore of the net proceeds from the fresh issue for capital expenditure (Rs 18.13 crore) towards its electrical heating and specialised cable solutions businesses, and for the prepayment or scheduled repayment of certain outstanding borrowings (Rs 55 crore).

Financially, Tempsens Instruments has demonstrated steady growth. For the fiscal year ending March 2026 (FY26), the company reported a total income of Rs 455.86 crore and a profit after tax (PAT) of Rs 71.07 crore, up from an income of Rs 382.47 crore and a PAT of Rs 62.56 crore in the previous fiscal. In FY2025, the company reported revenue from operations of Rs 378.53 crore and a profit of Rs 62.55 crore, according to earlier filings.

Company Profile and Industry Position

Incorporated in 1990, Tempsens Instruments is the largest manufacturer of contact and non-contact temperature sensors in India by revenue. The company operates through three core verticals: temperature sensing, electrical heating, and specialised cables. It holds an estimated 10.5% market share in the temperature sensor segment for the year ended March 31, 2026.

Between April 2023 and March 2026, the company served more than 1,000 unique customers and exports to over 80 countries. Its Projects/OEM business contributed 67.55% of revenue in Fiscal 2026, with the metal and petrochemical industries collectively accounting for 41.13% of revenue. The company is led by CEO Virendra Prakash Rathi and Managing Director Vinay Rathi.

Valuation and Outlook

AnandRathi, in a research report, has initiated a 'Subscribe: Long Term' rating on the IPO, valuing the company at an implied P/E multiple of 35.4x and an EV/EBITDA multiple of 25.64x based on FY26 earnings at the upper end of the price band. The research house attributes the company's growth to strong revenue expansion, a diversified product portfolio, and expanding international presence, though it notes the stock appears fully valued at the upper price band.