IPO Overview
Teja Engineering Industries Limited was incorporated on 17 April 2023 in Bharuch, Gujarat. The company took over its promoter’s earlier proprietorship firm, M/s Teja Engineering Services (originally established on 24 September 2002), through a Business Transfer Agreement.
Teja Engineering Industries is a pan-India engineering services company operating across the Oil & Gas, Power, and Energy sectors, with a primary focus on Operations & Maintenance (O&M) services. The company provides end-to-end lifecycle services, including O&M, Erection & Commissioning (E&C), instrument calibration, overhauling, terminal hook-up, and decommissioning and recommissioning services. It has executed over 300 CNG compressor station projects and manages O&M services for more than 550 units across 15 states, including Gujarat, Maharashtra, Telangana, Tamil Nadu, and West Bengal. The company does not manufacture equipment itself, but provides technical support to keep energy infrastructure running smoothly.
The company is launching its SME IPO on the NSE SME platform, entirely as a fresh issue of 16,98,000 equity shares at a fixed price of ₹220 per share, aggregating to ₹37.36 crore. The IPO opens on 30 June 2026 and closes on 2 July 2026, with listing expected around 7 July 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Fixed Price Issue – SME |
| Listing Exchange | NSE SME |
| IPO Open Date | 30 June 2026 |
| IPO Close Date | 2 July 2026 |
| Allotment Date | 3 July 2026 (Expected) |
| Refund Initiation | 6 July 2026 |
| Credit to Demat | 6 July 2026 |
| Listing Date | 7 July 2026 (Tentative) |
| Issue Price | ₹220 per share (Fixed) |
| Face Value | ₹10 per share |
| Lot Size | 600 shares (Minimum Bid: 1,200 shares / 2 lots) |
| Minimum Investment (Retail) | ₹2,64,000 (2 lots = 1,200 shares) |
| Minimum Investment (S-HNI) | ₹3,96,000 (3 lots = 1,800 shares) |
| Issue Size | ₹37.36 crore |
| Fresh Issue | 16,98,000 shares (₹37.36 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component, meaning no promoter exit.
Issue Break-up
| Category | Allocation |
| Non-Institutional Investors (NII/HNI) | 8,06,400 shares (~47.49%) |
| Retail Individual Investors (RII) | 8,06,400 shares (~47.49%) |
| Market Maker | 85,200 shares (~5.02%) |
Note: QIB allocation is nil — the retail quota is 50% and HNI is 50%.
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue is a fresh issue, and all funds raised will go directly to the company.
Objects of the Issue (Fund Utilization)
The company plans to use the IPO proceeds for:
- Funding capital expenditure for purchase of equipment/machineries — ~₹18.06 crore
- Funding working capital requirements — ~₹9.26 crore
- General corporate purposes — remaining proceeds
This will help the company expand its execution capabilities and strengthen its presence in India’s growing gas and energy infrastructure market.
Lead Managers & Registrar
- Book Running Lead Manager: Interactive Financial Services Ltd.
- Registrar to the Issue: Kfin Technologies Limited
- Market Maker: Aftertrade Broking Pvt. Ltd.
Promoters & Management
The promoters of the company are Srinivasarao Vakalapudi and Suryakumari Vakalapudi.
Promoter Holding:
| Stage | Holding |
| Pre-Issue | 91.33% |
| Post-Issue | 67.17% |
The promoters bring over 20 years of deep domain experience in the Oil & Gas engineering services sector.
Company Details
Teja Engineering Industries primarily provides specialized engineering, technical, and project management services in the Oil & Gas, Power, and Energy sectors. The company is also an authorised service provider for a globally reputed manufacturer of safety relief valves, and follows a service-led, asset-light business model with recurring contracts.
Sectors Served:
- Oil & Gas
- Power
- Energy Infrastructure (CNG, Natural Gas Distribution)
Key Services:
- Operations & Maintenance (O&M) — AMC and daily maintenance for CNG stations, gas compressor packages, and natural gas distribution networks
- Erection & Commissioning (E&C) — installation of CNG filling stations and gas compressor plants, pipeline/structure fabrication, cabling
- Instrument Calibration & Testing — mechanical and thermal equipment calibration
- Safety Valve Testing — testing and repair of Safety Relief Valves (SRVs) and Pressure Safety Valves (PSVs) under PESO license
- Overhauling Services — gas engines and compressor parts overhauling
Operational Footprint:
Head office in Bharuch, Gujarat, with operations spread across 15 states including Gujarat, Maharashtra, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa, Madhya Pradesh, Rajasthan, Odisha, West Bengal, Bihar, Tripura, and Jharkhand. Billing is centralized from the Gujarat head office.
Certifications:
- PESO Certification (under Rule 18, SMPV Rules 2016)
- ISO 9001:2015, ISO 14001:2015, ISO 45001:2018
Workforce: ~1,950+ employees (2,927 as of 31 May 2026, per company disclosures)
Financial Snapshot
| Period | Total Income (₹ Cr) | PAT (₹ Cr) | Net Worth (₹ Cr) | Total Borrowing (₹ Cr) |
| FY24 | ₹31.62 | ₹2.16 | ₹6.65 | ₹7.09 |
| FY25 | ₹55.23 | ₹4.02 | ₹12.61 | ₹12.85 |
Key Financial Metrics
- Revenue grew 74.67% and PAT grew 86.11% between FY24 and FY25.
- ROE: 42.44% (FY25) / 32.94% (as of Dec 2025)
- ROCE: 26.14% (FY25) / 20.07% (as of Dec 2025)
- RoNW: 31.85% (FY25)
- EBITDA Margin: 12.42% (FY25)
- PAT Margin: 7.27% (FY25)
- Debt/Equity: ~1.01
- Overall borrowings stood at ₹242.57 crore as of December 31, 2025, raising concern about leverage.
- PAT margins across periods: 17.56% (FY23), 16.92% (FY24), 8.97% (FY25), and 16.65% (9M-FY26), with RoCE of 22.14%, 19.25%, 17.66%, and 13.32% respectively.
- Pre-IPO EPS: ₹8.51 | Post-IPO EPS: ₹6.26
- Pre-IPO P/E: 25.85x | Post-IPO P/E: 35.16x
- Market Capitalization: ~₹141.18 crore
Company Strengths
- Pan-India presence across 15 states with 300+ successfully executed CNG projects
- Strong, long-standing relationships with major Oil & Gas PSUs (such as ONGC, GGL) and large corporates
- Multiple industry certifications — PESO, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018
- Experienced promoters with 20+ years of domain expertise
- Asset-light, service-led business model generating recurring O&M contract revenue
- Strong recent growth — revenue up ~75% and PAT up ~86% YoY (FY24 to FY25)
Key Risks & Challenges
- High revenue concentration — nearly 98% of revenue comes from the top 10 customers; loss of any major client could significantly impact financials
- Segment concentration risk — up to ~93% of revenue comes from the O&M segment alone, indicating limited diversification
- Manpower-intensive business — labour disputes, strikes, or skilled-labour shortages could delay projects or cause financial losses
- High overall borrowings of ₹242.57 crore as of December 31, 2025, raising leverage concerns
- Negative operating cash flows in recent years (FY23, FY24, FY25) due to rising inventory and trade receivables
- No owned registered office or facility land — both the registered office and the Palej Industrial Estate facility are leased
- Past regulatory delays in ROC, GST, PF, and TDS filings, resulting in penal interest
- Issue appears fully priced based on strong but possibly unsustainable 9M-FY26 earnings, with post-IPO P/E at 15.51x (annualised) versus 28.44x based on FY25 earnings
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
