MTAR Technologies' IPO oversubsribed nearly three times on opening day; bids for 2.17 crore shares placed

The Rs 596 crore initial public offering (IPO) by Hyderabad-based MTAR Technologies was over-subscribed nearly three times the issue size within hours of opening for bids by public investors on Monday, reports said. The retail investment portion of the issue, which will remain available for subscription till 5 March, was subscribed 2.99 times, according to the data by National Stock Exchange, a report in Moneycontrol.com said. The IPO has received bids for 2.17 crore equity shares against the offered size of 72.60 lakh equity shares, according to the data available on the exchanges. While retail investors led the charge placing bids 5.66 times the portion reserved for them, the portion reserved for non-institutional investors has been subscribed 76 percent, the report added. A report in LiveMint said that qualified institutional buyers have not started putting bids in just yet. The shares of the precision engineering company have been priced in the range of Rs 574-575 per share. A fresh issue of 21.48 lakh equity shares by the company and an offer for sale (OFS) of 82.24 lakh equity shares by promoters and shareholders is part of the IPO. A maximum of 13 lots of 338 shares amounting to Rs 1,94,350 can be bought by an investor. On Tuesday, the company had raised Rs 180 crore with the help of 15 anchor investors and allocated 31.11 lakh shares to them at Rs 575/share. Among the 15 investors were big names of the business world like Goldman Sachs, Ireland Public Limited Company and Nomura Funds. Kotak Mahindra MF, ICICI Prudential MF, Sundaram MF and SBI Mutual Fund are some of the domestic institutional investors who were assigned shares. Reportedly, in the pre-IPO round, which was held last month, SBI MF had invested Rs 70 crores while Axis MF had invested Rs 30 crores. The proceeds from the fresh issue will be used by the company to repay the borrowings and for funding capital requirements. MTAR Technologies manufactures engineered products for different sectors like clean energy segments, defence, space and nuclear. The company owns an export-oriented unit among the seven manufacturing facilities in the city of Hyderabad.