Shares of Tega Industries hit a 52-week high of Rs 709.55, surging 8% on the BSE in intraday trade on Thursday on strong growth prospects. Shares of the industrial products company have gained 13% in the past three sessions, taking it above the previous high of Rs 706.25 hit on March 9, 2023. In contrast, the S&P BSE Sensex was up 0.27% at 58,374 by 12:48 pm.

Tega made its stock market debut on December 13, 2021. The company issued its shares at Rs 453 each through an initial public offering (IPO). After listing, the stock hit an all-time high of Rs 767 on the day. On the other hand, it hit an all-time low of Rs 398 on February 24, 2022.

The stock has gained 11% in the past month after the National Company Law Tribunal (NCLT) approved Tega’s resolution plan to acquire McNally Sayaji Engineering (MSEL) through the Corporate Insolvency Resolution Procedure (CIRP).

Tega is a global leader in designing and manufacturing “operation critical” consumables for the mining, mineral processing and materials handling industries. MSEL offers pioneering solutions in manufacturing and marketing crushing, screening, grinding, materials handling and mineral processing equipment, with integrated customer support and after-sales service.

Tega said the acquisition would be completed within the next two months. The acquisition financing will be through an optimal mix of internal resources and debt.

The company wants to expand its product offerings to grow its business globally and in India. “The acquisition is expected to enhance the company’s and its shareholders’ value, characterised by medium-term revenue growth and margin expansion opportunities. The acquisition is expected to make Tega one of the most integrated global players in the sector, strengthening its brand and recognition global solutions provider,” the company said.

Meanwhile, in the October-December quarter (Q3FY23), Tega’s revenue rose 15% year-on-year to Rs 258 crore from Rs 297 crore a year earlier. Operating Ebitda increased to 22.66%, compared to 19.78% in the same period last year. Profit after tax rose 44% year-on-year to Rs 48.4 crore in the quarter. The company had a strong order book of Rs 325.3 crore on December 31, 2022.

The company’s management said the third-quarter results built on strong sales momentum in the year’s first half, with sales growing strongly across all regions. The increased scale also led to higher operating leverage, with margins improving significantly year-over-year and quarter-on-quarter.

Management said that significant improvements in the global supply chain and normalisation of logistics and transportation costs also helped improve margins, evident in the third-quarter numbers.