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Home >Markets >Ipo >MTAR Tech raises 179 crore from anchor investors ahead of IPO

MTAR Tech raises 179 crore from anchor investors ahead of IPO

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SBI MF and Axis MF had also invested 70 crore and 30 crore respectively in a pre-IPO round concluded last month.

  • The IPO consists of a fresh issuance of up to 21,48,149 equity shares aggregating 124 crore and an offer for sale of up to 82,24,270 equity shares worth up to 473 crore by selling shareholders

NEW DELHI : MTAR Technologies, a precision engineering solutions company, on Tuesday said it has raised 179 crore from anchor investors ahead of its share-sale, which opens for public subscription on Wednesday.

MTAR Technologies, a precision engineering solutions company, on Tuesday said it has raised 179 crore from anchor investors ahead of its share-sale, which opens for public subscription on Wednesday.

A total of 31,11,725 shares have been allocated to 15 anchor investors at 575 apiece, which is the upper end of the price band. At this price, the company garnered 179 crore, according to a circular uploaded on the BSE website.

A total of 31,11,725 shares have been allocated to 15 anchor investors at 575 apiece, which is the upper end of the price band. At this price, the company garnered 179 crore, according to a circular uploaded on the BSE website.

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Nomura Funds Ireland Public Limited Company, Jupiter South Asia Investment Company, White Oak Capital and Goldman Sachs India are foreign portfolio investors that have been allocated shares in the anchor book.

In addition, domestic institutional investors who were allocated shares are SBI Mutual Fund (MF), Axis MF, ICICI Prudential MF, HDFC MF, Birla Sunlife MF, Kotak Mahindra MF, Nippon India MF, Franklin Templeton MF, Sundaram MF, Invesco MF and Birla Sun Life Insurance.

SBI MF and Axis MF had also invested 70 crore and 30 crore respectively in a pre-IPO round concluded last month.

According to merchant banking sources, there was a bid demand of over 3,000 crore against the book size of only 179 crore. Overall, 25 bidders participated but shares were allocated to 15.

The IPO consists of a fresh issuance of up to 21,48,149 equity shares aggregating 124 crore and an offer for sale of up to 82,24,270 equity shares worth up to 473 crore by selling shareholders.

The price band has been fixed at 574- 575 per equity share for the initial share-sale, which would be open for public subscription during March 3-5.

Proceeds from the fresh issue will be used to repay debt, fund long-term working capital requirements besides attending to general corporate purpose.

The Hyderabad-based company 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.

MTAR 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.

The company works with clients like Indian Space Research Organization, Defence Research and Development Organization, 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.

JM Financial and IIFL Securities are the book running lead managers to the issue.

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