MTAR Technologies IPO ends with robust subscription

Published on Mar 08, 2021 09:42

The initial public offer (IPO) of MTAR Technologies received bids for 145.79 crore shares as against 72.60 lakh shares on offer, according to the stock exchange data. The issue was subscribed 200.79 times.

The non-institutional investors category was subscribed 650.79 times. The qualified institutional buyers (QIBs) category was subscribed 164.99 times. The retail individual investors category was subscribed 28.40 times.

The issue opened for bidding on Wednesday, 3 March 2021, and closed on Friday, 5 March 2021. The price band for the IPO was set at Rs 574-575 per share.

The IPO comprised both fresh issue of shares as well as offer for sales from promoters as well as investors. The fresh issue component comprised of issue of up to 21,48,149 equity shares and the offer for sale comprised of sale of up to 82,24,270 equity shares.

MTAR proposes to utilize the net proceeds from fresh issue for repayments of borrowings by the company, funding working capital requirements and for general corporate purposes.

Ahead of the IPO, the company on 2 March 2021 allotted 31,11,725 shares to anchor investors at Rs 575 per share, aggregating to Rs 178.92 crore.

MTAR Technologies (MTAR) is a leading precision engineering solutions company engaged in the manufacture of mission critical precision components with close tolerances (5-10 microns), and in critical assemblies, to serve projects of high national importance, through their precision machining, assembly, testing, quality control, and specialized fabrication competencies, some of which have been indigenously developed and manufactured. The company primarily serve customers in the nuclear, space & defence, and clean energy sectors.

The company reported net profit of Rs 28.07 crore and total sales of Rs 177.27 crore in the nine months ended on 31 December 2020.