After making strong debut on Monday, shares of MTAR Technologies declined nearly 9 per cent in opening deals on Tuesday. The stock fell as much as 8.81 per cent to hit day's low of Rs 986.80 on BSE. In contrast, the BSE Sensex was trading at 50,787, up 392 points or 0.78 per cent.
On Tuesday, shares of MTAR Technologies opened lower at Rs 1,080.45 against previous closing price of Rs 1,082.25. The stock hit intraday low and high of Rs 986.80 and Rs 1,080.45 in early trade so far. The market cap of the company declined by 219 crore to Rs 3,110 crore, from Rs 3,329 crore on Monday.
In a similar trend, MTAR Technologies shares were trading 6.19 per cent lower at Rs 1,015.50 apiece on the National Stock Exchange. In the opening trade so far, the stock hit low of Rs 986 after opening lower at Rs 1,079.
The stock of Hyderabad-based firm made a solid market debut on domestic bourses on Monday as the scrip got listed at Rs 1,063.90 on the BSE, a 85.03 per cent premium over its issue price of Rs 575. The share settled 88.22 per cent higher at Rs 1,082.25 on BSE on Monday.
The equity shares of MTAR Technologies Ltd (Scrip Code: 543270) was listed and admitted to dealings on the exchange in the list of 'B' group securities on BSE.
The Rs 597-crore initial public offering (IPO) of MTAR Technologies had received overwhelming response from investors. The three-day issue, which closed on March 5, was subscribed over 200 times as it received bids for 145.79 crore equity shares against an offer size of 72.6 lakh stocks. Besides, the company has raised Rs 179 crore from anchor investors.
The company intends to use fund proceeds from the fresh issue to repay debt, fund long-term working capital requirements besides attending to general corporate purpose. JM Financial and IIFL Securities were the book running lead managers to the issue.