MTAR Technologies IPO has received bids of a massive 145.79 crore shares against the offered 72.61 lakh shares, as of 5 pm data on the bourses, registering an over-subscription of 200.79 times.
The portion reserved for retail was subscribed 28.4 times. While the qualified institutional buyer category was subscribed 164.99 times, the non-institutional investor category was subscribed at 650.79 times.
The Hyderabad based precision engineering solutions company, engaged in the manufacturing and development of mission critical precision components and critical assemblies’, entry into the capital market has received overwhelming response. The offer of ₹597 crore, at the upper price band of ₹575 per share, consists of a fresh issuance of equity shares aggregating up to ₹124 crore and an offer-for-sale aggregating up to ₹473 crore.
The minimum bid lot is of 26 equity shares. The price band has been fixed at ₹574–575 a share. Prior to the IPO, the company had raised ₹100 cr via a pre IPO placement to SBI MF and Axis Mutual Fund.
The company is a niche and critical segments player in the nuclear, space, defence and clean energy space and has a wide product portfolio with precision and accurate engineering expertise, long-standing relationships with marquee clients like ISRO, DRDO, NPCL and Bloom Energy.
Given the oversubscription and interest from investors, the issue is likely to quote at a premium, analysts said.