Telge Projects Set for BSE SME Debut: IPO Oversubscribed, Zero Grey Market Premium
Engineering design services company Telge Projects is set to list on the BSE SME platform on October 3 following its Rs 27.00 crore IPO. The issue was oversubscribed 2.99 times, with QIBs showing the highest interest at 5.41 times. The company raised Rs 7.70 crore from anchor investors. Telge Projects, operating in 11 countries, offers services like BIM, structural design, and architectural services. The company's financials show significant growth, with revenue increasing from Rs 12.50 crore to Rs 25.65 crore between FY24 and FY25. IPO proceeds will fund new office premises, IT infrastructure upgrades, and manpower expansion. Despite oversubscription, the grey market premium stands at 0%, suggesting expectations of a flat listing.
*this image is generated using AI for illustrative purposes only.
Engineering design services company Telge Projects is poised to make its debut on the BSE SME platform on October 3, following the completion of its Rs 27.00 crore Initial Public Offering (IPO). The company's entry into the public market comes with mixed signals, as the issue garnered overall oversubscription but currently shows no grey market premium.
IPO Subscription Details
The Telge Projects IPO received a positive response from investors, achieving an overall subscription rate of 2.99 times. The subscription breakdown across investor categories is as follows:
- Qualified Institutional Buyers (QIBs): 5.41 times
- Non-Institutional Investors (NIIs): 2.75 times
- Retail Investors: 1.72 times
This oversubscription indicates a decent level of interest from various investor segments, with QIBs showing the strongest demand.
Anchor Investment
Prior to the public issue, Telge Projects successfully raised Rs 7.70 crore from anchor investors. These anchor investments come with a lock-in period extending until December, demonstrating a commitment from institutional investors.
Company Profile
Telge Projects specializes in providing engineering design services, including:
- Building Information Modeling (BIM)
- Structural design
- Architectural services
The company has established a presence in 11 countries, showcasing its international reach in the engineering services sector.
Financial Performance
Telge Projects has demonstrated strong financial growth in recent years:
| Fiscal Year | Revenue (Rs Crore) | Net Profit (Rs Crore) |
|---|---|---|
| FY24 | 12.50 | 2.66 |
| FY25 | 25.65 | 5.38 |
The company has more than doubled its revenue and net profit from FY24 to FY25, indicating robust growth in its operations and profitability.
IPO Proceeds Utilization
The funds raised through the IPO are earmarked for several strategic initiatives:
- Establishing new office premises in Pune
- Upgrading IT infrastructure
- Hiring additional manpower in India and for the US subsidiary
- General corporate purposes
These investments aim to support the company's growth and expansion plans.
Market Expectations
Despite the oversubscription of the IPO, the grey market premium currently stands at 0%. This suggests that market participants are anticipating a flat listing for Telge Projects shares when they debut on the BSE SME platform.
As Telge Projects prepares to list, investors and market watchers will be keenly observing how the stock performs on its first day of trading, given the contrast between the oversubscribed IPO and the lack of grey market premium.
18
