The retail portion was subscribed 16.55 times and that of non-institutional investors 8.04 times, while the qualified institutional buyers have put in 96% bids against their reserved portion.
"Going ahead, the fuel cell market is expected to grow at a CAGR of 14-15 percent. This coupled with Bloom’s tie up with Gail to deploy fuel cell technology is expected to augur well for the company. Further, the company is also in the process of establishing a new manufacturing facility at Adibatla in Hyderabad that will enable it to take sheet metal jobs for Bloom Energy, Isro and certain other customers," ICICI Direct said while recommending a 'subscribe' on the issue.
Incorporated in November 1999, MTAR Technologies is a leading precision engineering solutions company engaged in the manufacture of mission- critical precision components with close tolerances, and in critical assemblies. The company primarily serves customers in the nuclear, space and defence and clean energy sectors.
The company has grown at 16.5% cumulative annual growth rate (CAGR) over the last 3 years at the topline, while its earnings before interest, taxes, depreciation and amortization (EBITDA) margins were reported at 28.5% in FY2020. It is not a typical defense or Capital Goods Company, but still has a healthy order book at 1.7 times FY2020 revenues and superior profitability ratios as compared to its peers.
Angel Broking in an IPO note said "At the higher end of the price band the company is offering the shares at price earnings multiple of 49.1 times FY2020 earnings per share. We believe that the company is uniquely positioned to benefit from the Government’s focus on defence sector and make in India initiative. We are positive on the long-term prospects of the company and recommend "SUBSCRIBE" to the MTAR Technologies IPO for long term as well as for listing gains.