Updated: March 4, 2021 1:16:31 pm
The initial public offering (IPO) of MTAR Technologies opened for subscription on Wednesday, March 3, 2021, and was met with robust demand. The issue subscribed 3.68 times by the end of the first day of bidding. So far, the issue was subscribed 5.88 times as of 12:10 pm on Thursday, March 4, 2021.
It received a demand for 4,26,91,844 shares across both the stock exchanges against 72,60,694 shares on offer, data from NSE showed.
MTAR Technologies will be available for subscription till Friday, March 5, 2021, and the price band of the Hyderabad-based precision engineering solutions company has been fixed at Rs 574-575 per share. The public issue is expected to fetch up to Rs 597 crore.
Investors who wish to subscribe to MTAR Technologies IPO can bid in a lot of 26 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,950 to get a single lot of MTAR Technologies. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Monday, March 8, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
The Hyderabad-based firm has precision engineering capabilities to build nuclear and pressurized water reactors, aerospace engines, missile systems, aircraft components and many such other critical components and assemblies.
It currently operates out of seven manufacturing facilities, including an export-oriented unit located in Hyderabad, Telangana, and has been servicing the defense, aerospace and energy sectors for more than four decades.
MTAR Technologies works with clients like the Indian Space Research Organization (ISRO), Defence Research and Development Organization (DRDO), Nuclear Power Corporation of India Ltd and US-based Bloom Energy Corp, besides catering to other well-known establishments like Bharat Dynamics and Hindustan Aeronautics (HAL).
Prior to the public offer, the anchor investors’ portion was open for subscription on Tuesday where MTAR Technologies raised Rs 178.92 crore from 44 anchor investors, data from the stock exchanges showed.
JM Financial and IIFL Securities are the book running lead managers to the IPO while KFin Technologies is the registrar of the issue.
Geojit Financial Services, LKP Securities and Anand Rathi Share and Stock Brokers in their respective research notes have all recommended “Subscribe” to the offer.
Geojit Financial Services in its IPO note said, “At the upper price band of Rs 575, MTAR is available at a P/E of 47.3x
(annualized basis on FY21E EPS of Rs.12.2) which is aggressively priced. With no listed peers and a positive sentiment in the space & defence sectors due to Make in India and Atmanirbhar Bharat with limited competition for the products they manufacture, we assign a Subscribe rating, with a long term perspective.”
LKP Securities in its research report noted that “At the higher price band of Rs 575, the stock is valued at 20x FY20 earnings of Rs 28.3 and commands premium considering its healthy order book, visibility of topline growth, competitive edge, superior profitability as compared to peers, return ratios, wide clientele spread across the globe, sound R&D base and technological progress. We recommend investors to SUBSCRIBE to the IPO of MTAR.”
(with inputs from PTI)
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