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Teja Engineering Industries Ltd IPO
Teja Engineering Industries Ltd
₹2,64,000 /1200 sharesMinimum investment
IPO details
Minimum investment
₹2,64,000
Price range
₹220 - ₹220
Lot size
600
Issue size
37.36 Cr
Face value
10
IPO document
Subscription rate
Data will be available soon
Schedule
30 Jun 2026
IPO open date
2 Jul 2026
IPO close date
3 Jul 2026
Allotment date
3 Jul 2026
Funds unblock or debit
7 Jul 2026
Tentative listing date
About
Founded in
2023
MD/CEO
Mr Srinivasarao Vakalapudi
Parent organisation
Teja Engineering Industries Ltd
Teja Engineering Industries Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
The company claims to have a pan-India operational presence spanning 16 states and Union Territories, including Gujarat, Maharashtra, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Goa, Madhya Pradesh, Rajasthan, Odisha, West Bengal, Bihar, Jharkhand, Dadra & Nagar Haveli, and Assam. Its teams are deployed at client sites such as CNG stations, gas compression plants, and group gathering stations to carry out operations and maintenance work.
The company claims to manage operations & maintenance (O&M) services for over 550 units across India, covering day-to-day operations, preventive and breakdown maintenance, spare parts supply, and troubleshooting for gas compression plants, CNG filling and distribution stations, and gas/diesel generator sets.
The company holds PESO certification under the SMPV(U) Rules, 2016 (Rule 18), which authorises it to test safety relief valves (SRVs) and pressure safety valves (PSVs). It is also a recognised authorised service provider in India for a globally renowned manufacturer of safety relief valves.
The company is ISO 9001:2015 certified for quality management systems, ISO 14001:2015 certified for environmental management systems, and ISO 45001:2018 certified for occupational health and safety management systems.
The company claims to be expanding its service portfolio by introducing gas engine-driven reciprocating compressor packages with a capacity of 20,000 SCMD, deployed at client sites under compression service agreements where revenue is earned on a per-unit basis for each cubic metre of gas compressed. It also claims to be establishing a dedicated valve testing & calibration facility, supported by a hydraulic universal valve test bench, capable of testing industrial valves ranging from 0.5" to 24" in accordance with international standards.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 24.58 crore in FY23 to Rs 31.62 crore in FY24 to Rs 55.22 crore in FY25, while PAT increased from Rs 1.26 crore in FY23 to Rs 2.16 crore in FY24 to Rs 4.01 crore in FY25.
The company derives the majority of its revenue from operations & maintenance (O&M) services. O&M services contributed Rs 51.67 crore (93.57%), Rs 36.45 crore (91.10%), and Rs 21.66 crore (88.14%) of total revenue in FY25, FY24, and FY23, respectively. Any decline in demand, pricing pressure, delays in contract renewals, or loss of O&M contracts could materially impact revenue, cash flows, and profitability.
The top 10 customers contributed Rs 54.64 crore (98.95%), Rs 31.40 crore (99.32%), and Rs 24.56 crore (99.94%) of revenue in FY25, FY24, and FY23, respectively, while the single largest customer contributed Rs 21.41 crore (38.77%), Rs 22.63 crore (71.59%), and Rs 21.06 crore (85.68%) during the same periods. The loss of any major customer or a reduction in business from them could significantly affect the company's financial performance.
The company has reported negative operating cash flows in the last three financial years, amounting to Rs 0.92 crore, Rs 9.07 crore, and Rs 0.77 crore in FY25, FY24, and FY23, respectively, primarily due to higher inventory and trade receivables. If cash outflows continue to exceed inflows, the company may face liquidity challenges in the future.
The company has a limited operating history in its current corporate structure. Although it acquired the promoter's proprietorship business, Teja Engineering Industries Limited itself was incorporated only in April 2023. This limited track record as a corporate entity makes it difficult to assess its long-term performance and ability to manage future expansion.
The company has a history of compliance delays with statutory authorities. It has reported past delays in filing GST, PF, ESI, TDS, professional tax, and certain ROC forms. Although applicable late fees have been paid and no major penalties have been imposed so far, any recurrence could result in financial penalties, regulatory scrutiny, and reputational impact.
The company relies on third-party transport providers for project execution. Apart from its own fleet, it depends on external transporters without formal long-term agreements to move equipment, tools, spare parts, and manpower. Any disruption in transportation services could delay project execution and affect customer service.
The business depends significantly on government entities and large corporate clients. Delays, cancellations, budgetary changes, policy decisions, or slower approvals by these customers could postpone projects and adversely affect revenue visibility, cash flows, and business continuity.
The company has previously exceeded its sanctioned bank credit limits. It continued to utilise an ad hoc credit facility after its expiry, resulting in outstanding borrowings exceeding the sanctioned limit and the bank levying penal interest. Similar instances in the future could lead to additional penalties, deterioration in banking relationships, and tighter borrowing conditions.
The company acquired the promoter's proprietorship business along with its assets and liabilities. If any unknown liabilities, claims, or obligations relating to the transferred business emerge in the future, the company may have to bear the associated financial burden or engage in legal proceedings, which could adversely affect profitability and operations.
As of March 31, 2025, the company had outstanding financial indebtedness of Rs 17.36 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.
Application details
For Teja Engineering Industries IPO, eligible investors can apply as Individual investor.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Individual investor | ₹220 - ₹220 | ₹2 - ₹5 Lakhs | 600 |