Tempsens Instruments doubles IPO investors’ money as stock lists at 111% premium. Should you buy, sell or hold?

Shares of Tempsens Instruments made a bumper market debut on Friday as the stock more than doubled its IPO investors' money by listing at a whopping 111% premium over the issue price, with analysts advising interested investors who missed the rally to buy the stock on dips.

Tempsens Instruments shares opened at Rs 634 apiece on NSE, marking more than 111% premium over the IPO price of Rs 300 apiece. Following the stellar market debut, the stock gained further to Rs 634.85 apiece, before tumbling more than 8% to hit a low of Rs 582 apiece. It is still 94% higher than IPO price.

The bumper market debut comes after the company’s Rs 650-crore public issue attracted strong investor interest during its three days of public bidding, being subscribed a whopping 184 times. The maiden public issue comprised a fresh issue of Rs 95 crore and an offer for sale (OFS) worth Rs 555 crore. Ahead of the IPO, the company also raised Rs 194.54 crore from anchor investors.


Tempsens Instruments specialises in thermal engineering products and specialised cables. The company plans to use the Rs 73.13 crore in net proceeds from the fresh issue to support its growth plans and strengthen its financial position. Out of this amount, Rs 18.13 crore will be allocated towards capital expenditure for its electrical heating and specialised cable solutions businesses, while Rs 55 crore will be used for the prepayment or scheduled repayment of certain outstanding borrowings. The remaining proceeds will be used for general corporate purposes.

Also read | Tempsens Instruments shares make blockbuster debut, list at 111% premium

Should you buy, sell or hold Tempsens Instruments shares?

Tempsens Instruments is a leading thermal engineering and instrumentation player with strong positions across temperature sensing, specialised cables and electrical heating solutions, said Sunny Agrawal, Head of Fundamental Research at SBI Securities.

He noted that the company is India’s largest temperature sensor manufacturer, with a 10.5% market share, and holds a 21.3% share in non-contact temperature sensors. It has also demonstrated a strong financial track record, with revenue, EBITDA and PAT recording CAGRs of 27.2%, 35.2% and 28.2%, respectively, between FY24 and FY26. Exports contributed 28.5% of FY26 revenue, highlighting the company’s growing global presence, the analyst noted.

Tempsens also benefits from high entry barriers, supported by stringent certifications, lengthy customer qualification processes, specialised engineering expertise and long-standing relationships across mission-critical industries, Agrawal said, adding that these factors provide the company with a degree of competitive strength and customer stickiness.

“For investors who have received an IPO allotment, we would recommend holding on to the stock from a long-term perspective, subject to their individual risk profile. Those who have applied only for listing pop can book profit. Investors looking for a fresh entry may consider following a “Buy on Dips” strategy, rather than chasing the stock at elevated levels,” he said.

Also read | IPO investors waited 609 days for a stock to double on debut. Tempsens Instruments ends the drought

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)