Vadodara-based Tempsens Instruments (India) files DHRP for IPO

 Vadodara-based Tempsens Instruments (India) has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO).

The IPO, with a face value of Rs 4, is a fresh issue up to Rs 118 crore and an offer for sale up to 17,925,071 Equity shares by promoters - Amit Talesara, Puneet Talesara and Chandra Prakash Talesara. Other shareholders selling shares are Ankit Talesara and Nirmal Kumar Pande.  

The proceeds from its fresh issuance worth Rs 35.37 crore will be utilised for funding certain capital expenditure of the company for electrical heating solutions and specialized cable solutions, and Rs 55 crore for pre-payment or repayment in full or part of certain borrowings of the company, and general corporate purposes.

The issue is being made through the book-building process, in line with SEBI ICDR Regulations, with up to 50% reserved for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and at least 35% for Retail Individual Investors (RIIs).

The company, in consultation with the book-running lead managers, may consider a pre-IPO Placement for up to Rs 23.6 crore. The pre-IPO placement if completed, the fresh issue size will be reduced.

Incorporated in 1990, the company is a thermal engineering and specialised cable manufacturer, engaged in the design and manufacture of customized temperature sensing solutions, electrical heating solutions and specialised cables.

The company’s offerings are tailored to address each customer’s technical requirements. And by combining its technical expertise with a collaborative approach to customer relationships, the company delivers solutions that address complex thermal management and cable challenges across diverse industries. The company’s strong sales and operations teams are able to respond quickly to client needs, ensuring timely and effective delivery of its customised solutions.

According to the F&S Report, the company is the largest manufacturer of contact and non-contact temperature sensors in India in terms of revenue with a market share of approximately 10% in temperature sensor segment during the year ended March 31, 2025. The company is also the only Indian manufacturer of non-contact temperature sensors and held approximately 18% market share during Fiscal 2025 (Source: F&S Report).

And by indigenising noncontract temperature sensor development, the company has reduced reliance on foreign suppliers and established a strong leadership position (Source: F&S Report). Its technical expertise extends to advanced conductor solutions, and the company is among the few specialist manufacturers in India, as March 31, 2025 (Source: F&S Report). Furthermore, the company is one of India’s largest manufacturers of electrical heaters in terms of installed capacity as of March 31, 2025 (Source: F&S Report).

The company is also the only manufacturer of fibre optic temperature sensors and thermal profiling systems in India as of March 31, 2025 (Source: F&S Report). The company offers a diverse product portfolio structured around three core verticals - temperature sensing solutions, electrical heating solutions and specialised cables.

Its products play a critical role in ensuring safe, efficient and reliable operation of manufacturing processes across multiple industries.

The company has a diverse portfolio of project/original equipment manufacturer (Project/OEM) and maintenance, repair and operations (MRO). The Project/OEM category represents a high-barrier, approval-driven market, where winning large, competitive orders for instrumentation in greenfield or brownfield setups underscores the company’s technical credibility and customer trust (Source: F&S Report).

In parallel, the company actively serves the replacement market, which consists of MRO orders which often come from its existing Project/OEM customers while also allowing it to engage new customers who could eventually transition into project customers.

MRO orders provide a stable, recurring revenue stream, less dependent on capital expenditure cycles and linked to process uptime, regulatory compliance, and lifecycle management (Source: F&S Report). This two-pronged approach helps the company in securing project orders that not only strengthens its foothold in critical infrastructures but also increases the likelihood of repeat MRO orders, promoting customer retention and generating predictable revenue streams.

From April 1, 2022 until March 31, 2025, the company has served more than 345 unique customers (unique refers to new customers served each relevant fiscal and excluding repeat customers) across multiple industries which includes power, steel, glass and oil and gas amongst others.

The above extensive customer base supports the company’s diversified revenue stream, which mitigates risk from sector-specific economic downturns. Contributions from its top 10 customers have shown a consistent downward trend, remaining consistently at or under 26% of its revenue from operations.

Also, between April 1, 2022 and March 31, 2025, the company exported its products to more than 75 countries.

The company’s global presence is supported by its integrated manufacturing capabilities. And together with its joint ventures, the company operate 11 manufacturing units across the world, of which 8 are located in Udaipur and three manufacturing units are located overseas - United Arab Emirates, Republic of South Korea and in Indonesia.

Its manufacturing network enables the company to achieve backward integration and ensure quality control of its processes across all facilities. Complementing its manufacturing base, the company has a distribution network of 28 distributors, as of March 31, 2025.

To further strengthen its international footprint, the company is in the process of expanding its sales presence in Mexico.

As on the date of this Draft Red Herring Prospectus, the company has been granted 9 patents in India, 8 registered trademarks in India and 21 word mark registration across various jurisdictions.

The company is also amongst the very few companies in the world with a backward-integrated manufacturing unit for thermocouples, cables, and electrical heaters as of March 31, 2025 (Source: F&S Report). Key in-house capabilities now include alloy melting, hot-rolling, annealing, mineral-insulated cable manufacturing, machining, final assembly and calibration.

The company’s revenue from operations amounted to Rs 378.5 crore during FY25 vis-à-vis Rs 236.9 crore during FY23.

Its net profit was Rs 62.5 crore during FY25 vis-à-vis Rs 33.2 crore during FY23.

ICICI Securities and JM Financial are the book running lead manager to the issue and KFin Technologies is the registrar of the issue.