Wednesday, 3 March 2021

MTAR Technologies IPO skyrockets 3.68 times on Day 1

  

Mumbai, March 3, 2021: MTAR Technologies, a Hyderabad based precision engineering solutions company engaged in the manufacturing and development of mission critical precision components and critical assemblies; received bids of 2,67,32,628 shares against the offered 72,60,694 equity shares, as per the 5:00 pm data available on the bourses.

The portion reserved for retail investors saw robust interest on 1st day itself and saw itself subscribed 6.93 times. While the Qualified Institutional Buyer category remained unsubscribed, the Non-Institutional Investor category was fully subscribed, 1.02 times.  

The total size of the offer is Rs. 597 cr at the upper price band of Rs. 575 per share

The offer consists of a fresh issuance of equity shares aggregating up to 124 Cr and an Offer for sale of equity shares aggregating up to Rs 473 cr; of face value of Rs 10 each. The minimum bid lot is of 26 equity shares, thereafter in multiples.  The price band has been fixed at Rs. 574 – Rs. 575 per Equity Share. Prior to the IPO opening the company raised Rs 100 cr via a pre ipo placement to SBI MF and Axis Mutual Fund.

 

Recently the company raised Rs. 179 crore overall from 15 anchor investors which found participation from renowned global portfolio investors such as Nomura Funds Ireland, Jupiter South Asia Investment, White Oak Capital and Goldman Sachs Asset Management India besides key Domestic Investors like ICICI Prudential Mutual Fund, HDFC Mutual Fund, Birla Sunlife Mutual Fund, Kotak Mahindra Mutual Fund, Nippon India Mutual Fund, Franklin Templeton Mutual Fund, Sundaram Mutual Fund, Invesco Mutual Fund and Birla Sun Life Insurance participated.

 

Key brokerage houses like Axis Securities, ICICI Direct, Reliance Securities, Prabhudas Liladher, Axis Capital, Anand Rathi, BP Wealth, Investmentz.com and LKP have recommended investing in the public issue and highlighted company’s strengths like operations in niche and critical segments like nuclear, space, defence and clean enery; wide product portfolio with precision and accurate engineering expertise, long-standing relationships with marquee clients like ISRO, DRDO, NPCL, Bloom Energy; and a well-established order book as on September 2020 amongst others. The reports have also highlighted the Company’s strong and diversified supplier base, track record of growth in financial performance and about the experienced and qualified leadership team.

 

JM Financial and IIFL Securities are appointed as the BRLMs to the Issue.



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