MTAR IPO Subscription Status

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MTAR IPO Subscription Status

MTAR Technologies IPO opens today on 3rd March 2021 with a price band of Rs 574-Rs 575. The IPO closes on 5th March 2021. The company develops and manufactures high-precision components and equipment in the clean energy, nuclear, and space, and defense sectors in India and abroad.

The company proposes to utilize the net proceeds from the fresh issue towards repayments of borrowings by the company, funding working capital requirements, and for general corporate purposes.

Pre offer equity shares as of the date of RHP were 28,611, 442 equity shares, and equity shares outstanding after the offer would be 30,759, 591. MTAR IPO Subscription Status

Strengths

⇒ The company has a wide product portfolio catering to customers in diverse segments. It has established trusted and long-standing relationships with its customers.

⇒ MTAR has reasonable financial performance with decent topline growth.

Challenges

⇒ Client concentration risk in the form of significant dependence on orders from Bloom Energy, NPCIL, ISRO and DRDO.

⇒ IPO valuations seem to be stretched at a higher side.

⇒ Budgeted defense expenditure may witness constraints in FY21 largely due to COVID- 19 pandemic.

⇒ Though profits are reasonable they have been quite inconsistent as can be seen from the trend in the margins.

The GMP of the IPO is trading at a 43% premium over its offer price as per the data available.

Subscription Details

MTAR IPO Subscription Status [in no. of times (x)]

Category Shares Offered 3rd Mar 2021  4th Mar 2021 5th Mar 2021
QIB 20,74,484 0.00 0.96 103.82
NII 15,55,863 1.02 8.04 453.04
Retail 36,30,747 6.93 16.55 25.58
Total 72,60,694 3.68 10.27 139.53

Important Dates of MTAR IPO Allotment and Listing 

Basis of Allotment Mar 10, 2021
Refunds Mar 12, 2021
Credit to Demat Account Mar 15, 2021
Listing Date Mar 16, 2021

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About CA Priyanka Choudhary Jain 70 Articles
Chartered Accountant & an experienced credit analyst. She has worked with CRISIL as a Senior Credit Analyst on rating assignments including business & financial analysis in Corporates as well as the Public Finance Sector. Please mail your queries, feedback, and any suggestions to her on info.financepost@gmail.com

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