MTAR Technologies makes strong market debut; shares surge by 88 percent

MTAR Technologies got listed on BSE on Monday, 15 March, at Rs 1,063.90 marking a strong market debut with an 85.03 percent premium over its issue price of Rs 575. While the stock debuted on the National Stock Exchange (NSE) at Rs 1,050 with a premium of 82.6 per cent over the issue price. However, on the NSE, shares of the company closed 88 percent higher for the day at Rs 1,078.30, as reported by Economic Times. MTAR Technologies opened its Rs 597-crore initial public offering (IPO) on 3 March and closed it on 5 March. Within the three days of the bidding process, the shares were subscribed more than 200 times. The company fixed the price band at Rs 574 - Rs 575 per equity share. With respect to category-wise subscription, 28.4 times subscriptions were received for the segment reserved for retail investors while the qualified institutional buyers’ category was subscribed 165 times and 650.79 times subscription were received for the non-institutional category. During the book-building process, the company had raised Rs 597 crore from investors while Rs 179 crore was raised by the company ahead of the IPO from anchor investors. Nomura Funds Ireland, Jupiter South Asia Investment, White Oak Capital and Goldman Sachs India are the foreign institutional investors who bid for shares in the anchor round. The funds raised through the IPO will be utilised towards repayments of borrowings, funding working capital requirements and for general corporate purposes. The book running lead managers of the public issue included JM Financial and IIFL Securities. MTAR Technologies is a Hyderabad-based precision engineering company that manufactures critical and differentiated engineered products for nuclear, space and defence and clean energy. The company also owns seven manufacturing facilities in Hyderabad, Telangana including an export-oriented unit. The clients of the company include the Indian Space Research Organization, Defence Research and Development Organization, Nuclear Power Corporation of India Ltd among others.