MTAR Technologies IPO subscribed over 200 times on 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

The Rs 597-crore initial public offering of MTAR Technologies was subscribed more than 200 times on Friday, the final day of the bidding process on overwhelming support from investors.

The IPO has received bids for 145.79 crore equity shares against an offer size of 72.6 lakh equity stocks, translating into a subscription of 200.79 times, data available on the exchanges showed.

The portion reserved for retail investors was subscribed 28.4 times, qualified institutional buyers category was subscribed 165 times and non-institutional category received 650.79 times subscription.

MTAR Technologies, a precision engineering solutions company, on Tuesday raised Rs 179 crore from anchor investors.

The IPO consists of a fresh issuance of upto 21,48,149 equity shares aggregating Rs 123.52 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, which got fully subscribed on the first day of the issue itself on Wednesday.

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 pressurised water reactors, aerospace engines, missile systems, aircraft components and many such other critical components and assemblies.

MTAR 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.

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