MTAR Technologies IPO opens for subscription: Check price band, listing date and moreImage Source : MTAR.IN
MTAR Technologies IPO opens for subscription
The IPO of MTAR Technologies, a precision engineering solutions company, will open for subscription today. The issue will close on March 5.
The IPO consists of a fresh issuance of up to 21,48,149 equity shares aggregating Rs 124 crore and an offer for sale of up to 82,24,270 equity shares worth up to Rs 473 crore by selling shareholders.
The price band has been fixed at Rs 574- 575 per equity share for the initial share-sale. A retail investor can apply minimum for one lot which comprises 26 shares. Allotment of MTAR Technologies’ shares will be finalised on March 10 and shares will be credited to demat accounts on March 15.
The shares of MTAR Technologies will be listed on BSE and NSE on March 16.
The Hyderabad-based company has already raised Rs 179 crore from anchor investors ahead of its share-sale. A total of 31,11,725 shares have been allocated to 15 anchor investors at Rs 575 apiece.
Nomura Funds Ireland Public Limited Company, Jupiter South Asia Investment Company, White Oak Capital and Goldman Sachs India are foreign portfolio investors that have been allocated shares in the anchor book.
In addition, domestic institutional investors who were allocated shares are SBI Mutual Fund (MF), Axis MF, ICICI Prudential MF, HDFC MF, Birla Sunlife MF, Kotak Mahindra MF, Nippon India MF, Franklin Templeton MF, Sundaram MF, Invesco MF and Birla Sun Life Insurance. SBI MF and Axis MF had also invested Rs 70 crore and Rs 30 crore respectively in a pre-IPO round concluded last month.
According to merchant banking sources, there was a bid demand of over Rs 3,000 crore against the book size of only Rs 179 crore.
Overall, 25 bidders participated but shares were allocated to 15.
The company said that proceeds from the fresh issue will be used to repay debt, fund long-term working capital requirements besides attending to general corporate purpose.
The Hyderabad-based company has precision engineering capabilities to build nuclear and pressurized water reactors, aerospace engines, missile systems, aircraft components and many such other critical components and assemblies.
The company was incorporated in 1999. It currently operates out of seven manufacturing facilities, including an export-oriented unit located in Hyderabad, Telangana, and has been servicing the defense, aerospace and energy sectors for more than four decades.
The company works with clients like Indian Space Research Organization, Defence Research and Development Organization, Nuclear Power Corporation of India Ltd and US-based Bloom Energy Corp, besides catering to other well-known establishments like Bharat Dynamics and Hindustan Aeronautics.
MTAR Technologies IPO opens for subscription: Check price band, listing date and more