India: MTAR Tech IPO Subscribed 200.79 Times On The Final Day Of Bidding

The issue received total bids for 1.46 billion shares as against 7.26 million shares on the offer, according to subscription data available on the exchanges.

With a subscription of 200.79, MTAR Technologies ranks second after Astron Paper & Board Mill Ltd which was subscribed 243.29 times.

“Going ahead, the fuel cell market is expected to grow at a CAGR of 14-15 per cent. 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.

The IPO comprises a fresh issue of up to 21,48,149 equity shares at ₹10 each, totalling up to ₹124 crore. It also comprises an offer for sale of up to 8,224,270 equity shares aggregating up to ₹473 crore.

Ahead of the IPO, MTAR on Tuesday raised Rs. 178.92 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 an IPO note.

The company will utilise fresh issue proceeds for debt repayment and working capital requirements. The price band for the issue has been fixed at ₹574-575 per share.

MTAR Technologies is a leading precision engineering solutions company engaged in the manufacturing of mission critical precision components with close tolerances, and in critical assemblies, to serve projects of high national importance. It primarily serves customers in the nuclear, space & defence, and clean energy sectors.

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

This article was first published on livemint.com.