Tempsens Instruments’ initial public offering is set to make its stock market debut on Friday, August 28, after witnessing exceptionally strong demand during the subscription period. With the issue attracting bids several times the shares on offer, investors are likely keen to understand what drove the high subscription and what they should do if they receive an allotment.
According to data available on BSE, Tempsens Instruments’ IPO garnered bids for 279.44 crore shares as against 1.51 crore shares on offer, resulting in a subscription of 184.07 times. The non-institutional investor (NII) quota was booked the most at 314 times, followed by the qualified institutional buyer (QIB) segment at 302 times. The retail quota received 60.69 times bids and the employee portion 124.95 times.
Explaining the exceptionally high demand, Sunny Agrawal, head of fundamental research at SBI Securities, noted that Tempsens Instruments is India’s largest temperature sensor manufacturer, with a 10.5 per cent market share, and holds a 21.3 per cent share in non-contact temperature sensors.
Dr Ravi Singh, chief research officer at Master Capital Services, attributed the high IPO demand to strong financials of the company, noting that “Between FY24 and FY26, the company saw significant revenue growth of 27 per cent compound annual growth rate and profit growth of 32 per cent CAGR due to acquisitions and company expansion drives.”
Abhinav Tiwari, research analyst at Bonanza, said that the key growth driver for Tempsens Instruments is diversification beyond temperature sensing. He added that, “Import substitution, export expansion, capacity additions, backward integration and cross-selling across its customer base should support growth ahead of the industry growth.”
However, he also noted that working capital is the biggest near-term risk. Net working capital days increased sharply from 152 to 210 days, mainly due to higher inventory and receivables, which weakened cash conversion.
Buy, Sell or Hold Tempsens Instruments
Ravi Singh noted that for investors who got shares allotted, strong listing demand may lead to profit booking, while long-term investors may look to hold if the company continues to perform in the same manner. “The IPO valuation is high, and it would be important to monitor earnings and execution of the company post-listing,” he added.
Meanwhile, SBI Securities’ Sunny Agrawal said that for investors who have received an IPO allotment, “we would recommend holding on to the stock from a long-term perspective, subject to their individual risk profile.” He also added that investors looking for a fresh entry may consider following a “Buy on Dips” strategy, rather than chasing the stock at elevated levels.
Bonanza’s Abhinav Tiwari highlighted that the outlook remains positive for the stock, “provided the company can successfully integrate recent acquisitions and convert its expanded product portfolio into organic growth.” The grey market premium (GMP) for the offer remained robust, suggesting a multibagger listing ahead. According to websites tracking the unofficial market, Tempsens Instruments IPO GMP was ₹307. This means shares of the company were trading at ₹607, up 102.33 per cent.
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