MTAR Technologies IPO Subscribed Over 100 Times So Far On Final Day

Retail investors were seen bidding in huge quantities for the MTAR Technologies shares in the IPO as the portion reserved for retail investors was subscribed nearly 10 times.

MTAR Technologies IPO Subscribed Over 100 Times So Far On Final Day

MTAR Technologies is selling shares in the price band of Rs 574-575 per share in the IPO.

MTAR Technologies shares were in heavy demand in the ongoing share sale via initial public offering (IPO). MTAR Technologies IPO was subscribed 100.22 times as of 2:10 pm on the final day of subscription, data from the National Stock Exchange showed. MTAR Technologies shares were in huge demand among investors as it received total bids for 68.41 crore shares as against 72.60 lakh shares on the offer. Nearly 6 crore bids were received for the IPO at the cut-off price of Rs 575. (Also Read: MTAR Technologies IPO Opens, Should You Invest?)

Non institutional investors buyers were seen heavily bidding for MTAR Technologies shares as the portion reserved for them was subscribed 268 points and portion for retail investors was subscribed 11.48 times, NSE data showed.

Ahead of the MTAR Technologies IPO the company had raised Rs 179 crore from 15 anchor investors which included marquee foreign investors like Nomura Funds, Ireland Public Limited Company, Jupiter South Asia Investment Company, White Oak Capital and Goldman Sachs.

Domestic institutional investors who were allocated shares are SBI Mutual Fund (MF), Axis MF, ICICI Prudential MF, HDFC MF, Birla Sunlife MF, Kotak Mahindra MF, Nippon India MF, Franklin Templeton MF, Sundaram MF, Invesco MF and Birla Sun Life Insurance.

Brokerage firm Anand Rathi has 'subscribe' rating for MTAR Technologies IPO. In a research report Anand Rathi said, "At the upper end of the IPO price band, it is offered at 45.32 times its trailing twelve months earnings, with a market cap of Rs 1,769 crore. The company operates in an industry with high entry barrier especially given the steep learning curve, investment in advanced manufacturing facilities, precision requirements and past track record."

The Hyderabad-based MTAR Technologies manufactures equipment for the defence, aerospace and nuclear energy sectors. The company is primarily engaged in the manufacturing of mission-critical precision components with close tolerance and in critical assemblies through its precision machining, assembly, specialized fabrication, testing, and quality control processes. ISRO, HAL, Defence Research and Development Organisation (DRDO), Bharat Dynamics and Bhabha Atomic Research Centre are some of its clients.

MTAR Technologies is selling shares in the price band of Rs 574-575 per share in the IPO and company plans to raise Rs 596 crore.