MTAR Tech IPO listing day strategy: Grey market premium suggests bumper listing; book gains or hold shares?

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March 13, 2021 11:35 AM

MTAR Technologies Rs 596-crore IPO, which was subscribed 201 times, will make its stock market debut on Monday, March 15, 2021.

MTAR Technologies, MTAR Tech listing, IPOMTAR Technologies has finalised the basis of the allotment of the IPO on March 10. (Image: MTAR website)

MTAR Technologies Rs 596-crore IPO, which was subscribed 201 times, will make its stock market debut on Monday, March 15, 2021. MTAR Tech shares were trading strong in the grey market ahead of the stock market listing on Saturday. The shares were seen trading with a premium of Rs 495 per share over the IPO price of Rs 575 apiece in the grey market on Saturday. MTAR Technologies shares were ruling at Rs 1,070 apiece in the grey market, implying a premium of 86 per cent. Seeing the strong grey market premium, one can expect a good listing for MTAR Technologies backed by positive investor sentiment, says Likhita Chepa, Senior Research Analyst at CapitalVia Global Research Limited.

Chepa told Financial Express Online that MTAR Technologies appears to be a potential long-term bet, investors who have solely subscribed for listing gains should consider booking listing gains in the range of 40-50 per cent. During IPO, qualified institutional investors subscribed their reserved portion 164.99 times and non-institutional investors 650.79 times, while the retail category was subscribed 28.4 times.

What should investors do if they have and haven’t got shares in MTAR Tech IPO allotment

MTAR Technologies has finalised the basis of the allotment of the IPO on March 10. If you have been allotted shares in the MTAR Tech IPO, it would be best to book 50 per cent profits, says AR Ramachandran, Co-founder & Trainer, Tips2Trades. As it has been seen with all the IPO listings so far, you would get to buy at least 15-20 per cent lower than the listing price at a later date. Ramachandran told Financial Express Online, investors who haven’t been allotted should be patient and wait for a decent dip to buy at lower levels.

What to expect from MTAR Technologies listing?

Analysts believe that if grey market premiums are anything to go by then it is going to be nothing short of a bumper listing of MTAR Technologies on March 15. Jyoti Roy – DVP- Equity Strategist, Angel Broking Ltd, said that one of the reasons for the expected bumper listing is that it is one of a kind company with no comparable peers. The company caters to marquee clients like ISRO, DRDO, NPCIL, Bloom Energy and Rafael and is uniquely positioned to benefit from the government’s focus on the defence sector and ‘Make in India’ initiative. Roy is positive about the long-term prospects of the company.

What should be listing day strategy for MTAR Technologies?

Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, told Financial Express Online, MTAR Technologies will give a listing gain in the tune of 30-50 per cent. Wagh added that investors’ strategy should be booking listing gains of 50 per cent at least. The MTAR Tech is a longer-term hold bet. “But keeping current market valuations into consideration any gains of more than 50 per cent should be cashed in at least partially and hold the small investment for longer-term maybe for over 2 years.

(The recommendation in this story is by the respective research and brokerage firm. Financial Express Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)

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