Tempsens Instruments' Rs 650-crore IPO continues to see strong demand on its second day, with subscription levels nearing 6 times. While the grey market suggests a potential 90% listing gain, investors should view this as speculative. The IPO closes on August 24, with the company facing risks related to sector cyclicality and full valuations.
The initial public offering of Tempsens Instruments (India) continued to gather momentum on its second day of bidding on August 21, with total subscriptions crossing the 5.9 times mark by midday. The Rs 650-crore issue, which opened for public bidding on August 20, is seeing active participation across both retail and institutional categories as investors look toward the thermal engineering and specialized cable manufacturer.
The IPO structure comprises a fresh issue of Rs 95 crore and an offer for sale (OFS) of shares worth Rs 555 crore. The company intends to direct the net proceeds from the fresh issue toward capital expenditure for its electrical heating and specialized cable solutions businesses, as well as for debt reduction. These capital investments are intended to support long-term capacity, though investors often track how effectively such capital is deployed over the coming quarters.
Grey market indicators continue to reflect high sentiment, with shares reportedly trading at a premium of Rs 270. This implies a potential listing gain of around 90% over the upper end of the Rs 300 price band. Investors should note, however, that grey market premiums are unofficial, highly speculative, and do not provide a guarantee of actual listing day performance. Market sentiment can shift quickly before the final listing date.
Tempsens Instruments holds a roughly 10.5% market share in the temperature sensor segment as of FY26. Its financial performance for the fiscal year 2026 included a revenue of Rs 444.88 crore and a net profit of Rs 71.07 crore. While the growth figures appear steady, the company operates with specific risk factors. A significant portion of its revenue is tied to the metal and petrochemical sectors, making the business vulnerable to industry-specific cyclicality where demand can fluctuate based on broader economic conditions.
Additionally, the company is exposed to raw material price volatility, particularly in metals, which can impact profit margins if the company cannot pass on costs to customers. At the current price band of Rs 285–300, the IPO is valued at approximately 35 to 37 times FY26 earnings. Some analysts have noted that this is a full valuation, meaning the market is already pricing in expectations of continued growth.
The IPO is scheduled to close for subscription on August 24. Investors should track the final subscription numbers, as the official allotment process will follow. Shares are tentatively scheduled to debut on the BSE and NSE on August 28, 2026.