Shares of MTAR Technologies listed on the stock exchanges today at a sturdy premium more than its IPO cost, regardless of the benchmark indices plummeting. MTAR Technologies started trading at Rs 1,063.9 per share, an 85% premium more than the challenge cost of Rs 575 apiece. MTAR Technologies nuclear, defence and aerospace gear, fabrication facilities and fuel cells. On listing, shares of the business have been quoting a industry capitalisation of Rs 3,272 crore. Through the IPO, MTAR Technologies raised Rs 596-crore. The challenge was subscribed 210 occasions.
Check live cost: MTAR Technologies
Promoters of MTAR Technologies have trimmed their stake to 50.25% by means of the challenge though public shareholding in the business has elevated to 49.75%. The firm received sturdy investor interest through the IPO subscription stage with certified institutional purchasers (QIB) bidding for 165 occasions their quota and retail investors bidding for the challenge 28.4 occasions. However, higher net-worth people showed the highest interest in the challenge, subscribing to their portion a huge 650 occasions.
Some of MTAR Technologies’ competitive strengthens involve its precision engineering experience with complicated item manufacturing capability, a wide item portfolio that has led to a extended-standing partnership with the prospects, and modern day technologies at the state-of-the-art manufacturing facilities. There are no listed peers, obtaining a related operating model as MTAR Technologies, mentioned 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 mentioned though assigning a ‘Subscribe’ rating to the IPO of MTAR Technologies.
Analysts at Motilal Oswal had earlier mentioned that MTAR Technologies could be a extended-term bet and one for listing gains as effectively. “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 mentioned. Seeing the buoyant industry and interest in the defence sector, listing gains have been not ruled out.