Tempsens Instruments IPO
the heat check
A niche 35-year-old temperature-sensing business, an IPO that's already closed, and a grey market premium that's been on fire. Here's the full picture — visually, and honestly.
You can't apply anymore. This review now serves one purpose: understanding whether it was worth applying, and what to do if you were allotted shares.
Tempsens builds instruments that help factories measure and control extreme temperatures — the kind of specialised, technical, B2B work that isn't glamorous but is hard to displace once a customer qualifies your product.
Only 15% is fresh capital. The rest is promoters/investors selling existing shares. Not a dealbreaker, but worth knowing before you get swept up in GMP excitement.
Don't anchor on ₹622. GMP is an unofficial, unregulated indicator — not an exchange price or a guarantee. Anything above 100% premium is extraordinary territory and can compress fast between now and listing day.
₹55 Cr of IPO proceeds go straight to repaying borrowings — the balance sheet gets even lighter post-listing.
No listed Indian company matches Tempsens' exact product mix. Pyrotech Electronics, AIA Engineering, and global player Thermon are loose reference points at best — their margins and business models differ enough that leaning on their P/E to "justify" this valuation would be a stretch.
The real question isn't "how does this compare to peers" — it's can EPS grow from ₹8.5 to ₹12–15 quickly enough to make 35x feel reasonable in hindsight?
🟢 Liked
- Specialised, hard-to-replicate niche
- ~25% EBITDA margins
- 35+ years of operating history
- ~29% revenue from exports
- Debt/equity of just 0.15x
- Meaningful market leadership
🔴 Cautious about
- 35x P/E — priced for continued growth
- 40%+ earnings tied to metal & petrochemical capex
- 85% of the issue is OFS, not fresh capital
- Recent acquisitions (GmbH, Polska) muddy YoY comparisons
| Business | ★★★★☆ |
| Management | ★★★★☆ |
| Financials | ★★★★☆ |
| Balance sheet | ★★★★★ |
| Growth | ★★★★☆ |
| Valuation at ₹300 | ★★★☆☆ |
| GMP | ★★★★★ |
| Long-term potential | ★★★★☆ |
Strong subscription (~184x overall), ₹300 issue price, and 100%+ GMP made this a textbook listing-gain setup.
At ₹600, P/E jumps to ~71x — a completely different, much riskier proposition than buying at ₹300.
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