Promoters of MTAR Technologies have trimmed their stake to 50.25% through the issue while public shareholding in the company has increased to 49.75%.
Shares of MTAR Technologies today listed on the stock exchanges. (Image: REUTERS)
Shares of MTAR Technologies listed on the stock exchanges today at a strong premium over its IPO price, despite the benchmark indices plummeting. MTAR Technologies began trading at Rs 1,063.9 per share, an 85% premium over the issue price of Rs 575 apiece. MTAR Technologies nuclear, defence and aerospace equipment, fabrication facilities and fuel cells. On listing, shares of the company were quoting a market capitalisation of Rs 3,272 crore. Through the IPO, MTAR Technologies raised Rs 596-crore. The issue was subscribed 210 times.
Promoters of MTAR Technologies have trimmed their stake to 50.25% through the issue while public shareholding in the company has increased to 49.75%. The firm received strong investor interest during the IPO subscription stage with qualified institutional buyers (QIB) bidding for 165 times their quota and retail investors bidding for the issue 28.4 times. However, high net-worth individuals showed the highest interest in the issue, subscribing to their portion a massive 650 times.
Some of MTAR Technologies’ competitive strengthens include its precision engineering expertise with complex product manufacturing capability, a wide product portfolio that has led to a long-standing relationship with the customers, and modern technology at the state-of-the-art manufacturing facilities. There are no listed peers, having a similar operating model as MTAR Technologies, said Choice Broking in an IPO note.
“The government’s indigenization efforts from the flagship Atmanirbhar Bharat initiative is likely to boost the business growth of MTAR from the defence sector. The company has a long term relationship and is the preferred supplier of NPCIL for the manufacturing of the equipment used in nuclear reactors,” analysts at Choice Broking said while assigning a ‘Subscribe’ rating to the IPO of MTAR Technologies.
Analysts at Motilal Oswal had earlier said that MTAR Technologies could be a long-term bet and one for listing gains as well. “We like MTL given its complex/wide product portfolio, presence in niche space, strong client relationship and high entry barriers. We believe MTL could benefit from the government impetus on indigenization. Hence we recommend Subscribe for Long Term,” they said. Seeing the buoyant market and interest in the defence sector, listing gains were not ruled out.