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The 596 crore initial public offering (IPO) of MTAR Technologies was subscribed 3.68 times on Wednesday, spurred by strong demand from retail investors.

It received bids for 26.73 million equity shares against the offer size of over 7.26 million shares, according to the data available on the exchanges.

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The portion reserved for retail investors was subscribed 6.93 times while the non-institutional investors’ portion was subscribed 1.02 times. Qualified institutional buyers were still to place their bids.

The company is selling shares in the range Rs574-575 apiece. The IPO closes on 5 March.

The IPO comprises a fresh issue of up to 2,148,149 equity shares at Rs10 each, totalling up to Rs124 crore. It also comprises an offer for sale of up to 8,224,270 equity shares aggregating up to Rs473 crore.

MTAR manufactures critical and differentiated engineered products for nuclear, space and defence and clean energy and owns seven manufacturing facilities in Hyderabad, including an export-oriented unit.

The company proposes to utilize the proceeds from the fresh issue to repay borrowings, fund working capital requirements and for general corporate purposes.

Ahead of the IPO, MTAR on Tuesday raised Rs178.92 crore from 15 anchor investors. Foreign portfolio investors who took part in the anchor allotment included Nomura Funds Ireland, Jupiter South Asia Investment, White Oak Capital and Goldman Sachs India.

“Considering the company’s expertise in providing a wide range of precision engineering products with complex manufacturing capability, high entry barrier, strong balance sheet & management," Anand Rathi Financial Services said in a pre-IPO note, as it advised investors to “subscribe" to the issue.

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

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