Tankup Engineers has made a successful entry into the NSE SME market, capturing the attention of investors. Today, the company’s shares debuted at ₹175, reflecting a 25% increase from its initial issue price of ₹140. The initial public offering (IPO) was available for subscription from April 23 to April 25, 2023, and attracted significant interest, with a subscription rate hitting an impressive 124.67 times by the end of the bidding period.
Company Overview and Offerings
Founded in 2020, Tankup Engineers Limited focuses on crafting advanced vehicle superstructures that provide innovative mobility and storage solutions. Their diverse product lineup includes:
- Self-bunded fuel tanks
- Mobile diesel bowsers
- Aircraft refuelers
- Fire tenders
- Ground support equipment
The company is dedicated to designing custom tanks for transporting or storing liquids, gases, or solids, tailored specifically to meet clients’ specifications in terms of size, materials, capacity, and functionality. Tankup Engineers serves various sectors, including:
- Agriculture
- Mining
- Construction
- Logistics
- Aviation
- Defense
- Infrastructure
Their manufacturing facility, spanning 2,665 sq. m in Lucknow, holds ISO certification and has received approval from PESO. Additionally, the facility has achieved the MSME ZED certification, affirming its commitment to Zero Defect Zero Effect manufacturing.
IPO Highlights and Financial Aspects
The Tankup Engineers IPO comprises a fresh issuance of 1,395,000 equity shares, which totals around ₹19.53 crore. There is no offer for sale (OFS) component in this offering. The proceeds from the IPO are earmarked for several critical uses, including:
- Repayment of certain outstanding loans
- Financing working capital requirements
- General corporate purposes
Hem Securities Limited is acting as the lead book-running manager, while Bigshare Services Pvt Ltd serves as the registrar for the IPO.
Market Performance and Grey Market Trends
As of today, the Grey Market Premium (GMP) for Tankup Engineers is +8, indicating that the shares are trading at a premium of ₹8 in the unofficial market, according to investorgain.com. Given the upper limit of the IPO price band and the current grey market premium, analysts estimate the listing price could reach ₹148, which is approximately 5.71% above the initial issue price of ₹140.
The recent activities in the grey market show a positive trend, with the GMP fluctuating between a minimum of ₹0.00 and a maximum of ₹15 over the past two weeks. This rise in GMP suggests strong investor sentiment and the likelihood of a solid market debut.
Conclusion
Tankup Engineers’ debut on the NSE SME market is a promising sign for investors, highlighting the company’s unique position in the market and its potential for growth. With a robust subscription rate and an optimistic outlook in the grey market, this IPO is certainly one to watch.
For more updates on the Tankup Engineers IPO and how to check your allotment status, stay tuned for the latest news!
