The IPO of Teamtech Formwork Solutions will open for subscription on Tuesday, with grey market signals indicating a muted listing outlook ahead of the issue launch. According to market trackers, the IPO was commanding a grey market premium (GMP) of 0%, indicating no premium over the upper end of the issue price band in the unofficial market.
The NSE SME issue aims to raise around Rs 50.15 crore through a completely fresh issue of 79.6 lakh shares. The IPO will open on May 19 and close on May 21, while the tentative listing date has been fixed as May 26 on the NSE SME platform.
The company has fixed the price band at Rs 61-63 per share. Investors can apply for a minimum of 2,000 shares, but retail investors will have to bid for at least two lots or 4,000 shares, translating into a minimum investment of Rs 2.52 lakh at the upper price band.
For small non-institutional investors, the minimum investment requirement stands at Rs 3.78 lakh. The company has already raised Rs 14.28 crore from anchor investors ahead of the IPO opening.
Incorporated in 2018, Teamtech Formwork Solutions operates on a business-to-business model focused on manufacturing, refurbishing and renting modular formwork systems used in the construction sector.
Its product portfolio includes modular T-formwork systems, customised panels and supporting components used for vertical concrete structures such as walls, bridges, tanks, foundations and shafts. The company also provides engineering support, refurbishment and rental solutions for construction projects.
Teamtech operates a 20,000 square feet manufacturing and refurbishment facility in Telangana equipped with laser and plywood cutting machinery along with specialised software for project planning and design estimation.
The IPO proceeds will primarily be used for setting up a new manufacturing facility, repayment of borrowings and working capital requirements.
The company has benefited from rising infrastructure and real estate activity, particularly in large-scale urban and industrial construction projects where modular formwork systems are increasingly being adopted to improve speed and efficiency.
GetFive Advisors is the book-running lead manager to the issue, while KFin Technologies is the registrar. SMC Global Securities is acting as the market maker for the IPO.
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