MTAR Technologies IPO subscribed 200 times: Check grey market premium
BusinessToday.In March 5, 2021
The initial public offer (IPO) of MTAR Technologies was subscribed 200.79 times as on 5 pm on Friday, the final day for bidding. Investors put in bids for 145.79 crore shares as against 72.60 lakh shares on offer.
While the category for qualified institutional buyers (QIB) was subscribed 164.99 times, that for non-institutional investors was subscribed 650.79 times. Retail investors submitted bids of 28.40 times against the portion reserved for them.
The IPO of the precision engineering solutions company was open from March 3-5. The price band for the IPO was Rs 574-Rs 575 per share and bids could be made in a minimum lot size of 26 shares.
In the grey market, the company's shares are trading at a premium of Rs 450 per share. This implies a listing price of Rs 1,025 as compared to the issue price of Rs 575 per share.
The IPO consists of fresh issuance of up to 21,48,149 equity shares aggregating Rs 123.52 crore and an offer for sale of up to 82,24,270 equity shares worth up to Rs 473 crore by shareholders.
MTAR Technologies' share allotment is likely to be finalised on March 10, while listing is likely to take place on March 16. While KFin Technologies Pvt Ltd is the registrar to the issue, JM Financial and IIFL Securities are the book running lead managers.
On Tuesday, the company had raised Rs 179 crore from anchor investors.
The Hyderabad-based company has precision engineering capabilities to build nuclear and pressurised water reactors, aerospace engines, missile systems, aircraft components and many such other critical components and assemblies.
MTAR Technologies has seven manufacturing facilities, including an export-oriented unit located in Hyderabad, and has been serving defence, aerospace and energy sectors for more than four decades.
It works with clients like the Indian Space Research Organisation (ISRO), Defence Research and Development Organisation (DRDO), Nuclear Power Corporation of India Ltd (NPCIL) and US-based Bloom Energy Corp, besides catering to other well-known establishments like Bharat Dynamics and Hindustan Aeronautics (HAL).