The initial public offering (IPO) of MTAR Technologies has got a massive response from investors, with the issue being subscribed more than 200 times since Wednesday (March 3). The Rs 597 crore IPO has received bids for Rs 145.79 crore equity shares, following which the grey market premium on MTAR Technologies shares have further gone up, say market observers.

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MTAR Technologies is a precision engineering solutions company that works with the likes of the Indian Space Research Organisation (ISRO).

The IPO, which consists of a fresh issue of shares worth Rs 124 crore and an offer for sale of Rs 473 crore worth of shares, is being sold in the Rs 574-575 price band. The allotment of its shares is likely to be finalised on March 10 and the listing is likely on March 16, say brokerages.

KFin Technologies Private Limited is the registrar and investors can check the allotment status on its website.

On March 5, Grey-market tracker Abhay Doshi had tweeted: “MTAR Tech is in different zone! Solid response from HNI, QIB and ofcourse Retail as always. A blockbuster listing candidate. (sic)”

According to a report in LiveMint, Doshi, founder of UnlistedArena.com, which deals in pre-IPO and unlisted shares, said the oversubscription added fuel to the premium, which was already hot. He said that for a couple of days, the premium hovered around the Rs 440-450 range. It jumped to the Rs 540-545 range after the oversubscription.

Ahead of the IPO, MTAR Technologies had raised Rs 179 crore from anchor investors. The issue got fully subscribed within the first few hours on the first day of the IPO on March 3. The portion reserved for the non-institutional category received 650.79 times subscription, qualified institutional buyers’ category 165 times and retail 28.4 times.

Apart from ISRO, MTAR Technology’s other clients include Defence Research and Development Organisation, Nuclear Power Corporation of India Ltd, Bharat Dynamics and Hindustan Aeronautics besides the US-based Bloom Energy Corp. According to MTAR Tech website, the company has been associated with ISRO for over three decades and has supplied a wide variety of mission-critical assemblies.