Tempsens Instruments IPO Subscription Crosses 7X, GMP Signals 90% Premium

The initial public offering (IPO) of Tempsens Instruments (India) continued to attract strong investor interest on the second day of bidding, with the ₹650-crore issue receiving more than seven times subscription by 12:23 pm on Friday, according to NSE data.

The issue received bids for 11,42,81,350 shares against 1,51,81,667 shares on offer. Non-institutional investors (NIIs) led the demand, with their portion subscribed 16.99 times, while the retail individual investor (RII) portion was subscribed 7.14 times.

Strong Investor Interest In IPO

The IPO will remain open until August 24, with the company having fixed the price band at ₹285-300 per share.

The issue comprises a fresh issue of shares worth ₹95 crore and an offer for sale (OFS) of 1.85 crore shares worth ₹555 crore at the upper price band.

Ahead of the IPO, Tempsens Instruments raised ₹194.5 crore from anchor investors on August 19. The company allotted 64.84 lakh equity shares to 29 anchor investors, including Aranda Investments, Goldman Sachs and Ashoka WhiteOak Emerging Markets Equity Fund.

Domestic mutual funds accounted for a sizeable portion of the anchor allocation. Around 37.21 lakh shares were allotted to eight domestic mutual funds, including HDFC AMC, Nippon Life India, Kotak Mahindra AMC, Aditya Birla Sun Life AMC, Edelweiss and Tata Mutual Fund, through 14 schemes.

Another 4.67 lakh shares were allocated to Axis Max Life Insurance and Kotak Mahindra Life Insurance.

Grey Market Premium Signals Strong Sentiment

Tempsens Instruments shares were commanding a grey market premium of ₹270 on the morning of August 21, according to InvestorGain.

At the upper end of the IPO price band of ₹300, the GMP implies an indicative listing price of around ₹570, representing a potential premium of about 90% over the issue price.

However, grey market premiums are unofficial indicators based on market sentiment and speculation. They can change before listing and do not guarantee the actual listing price or returns.

IPO Proceeds And Financial Performance

Tempsens Instruments plans to use ₹18.1 crore from the net proceeds of the fresh issue towards capital expenditure for its electrical heating solutions and specialised cable solutions businesses.

Another ₹55 crore has been earmarked for repayment of debt, while the remaining proceeds will be used for general corporate purposes.

The company reported revenue of ₹444.9 crore in FY26, up 17.5% from ₹378.5 crore in FY25. Profit increased 11.2% to ₹67.3 crore from ₹60.6 crore during the same period.

The company generated 71.5% of its FY26 revenue from its domestic business, while exports contributed the remaining 28.5%.

ICICI Securities and JM Financial are the book-running lead managers for the IPO.

Growth Opportunity In Temperature Sensors

According to Master Capital Services, India's temperature sensor market is shifting towards local manufacturing, supported by demand for cost competitiveness, customisation and faster delivery.

The brokerage said India's temperature sensors and allied products market was valued at around ₹18.8 billion in FY26 and is projected to reach ₹28.8 billion by FY31E, growing at a CAGR of 8.9%.

Master Capital Services said Tempsens Instruments is positioned to benefit from demand across temperature sensors, electrical heating solutions and specialised cables, while its focus remains on R&D, new products and expanding its international footprint.