The initial public offering (IPO) of MTAR Technologies saw a strong investor response, with the issue getting subscribed by 6.4 times on Day 2 of the bidding process.

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The strong subscription was led by retail investors as their reserved portion, which was subscribed 11.78 times, as of 1:45 PM and that of non-institutional institutions 2.32 times. The portion set aside for qualified institutional buyers (QIBs) and the employees did not bid yet.

The public issue consists of a fresh issue of Rs 124 crore (21.48 lakh share) by the company and an offer for sale of Rs 473 crore (82.24 lakh shares) by promoters and investors. The price band was set at Rs 574-575 and the company plans to raise around Rs 600 crore from the IPO.

Also read:

MTAR Technologies IPO opens today: All you need to know

On Tuesday, the company raised Rs 178.92 crore from 15 anchor investors at Rs 575 per share including Nomura Funds Ireland, Jupiter South Asia Investment, White Oak Capital and Goldman Sachs India.

Most brokerages had advised subscribing to the issue for listing gains as well as for long-term investment on the back of huge opportunities, good financials, the government's focus on the manufacturing sector, growing demand and rising investment in the space.

Funds raised from the fresh issue of shares will be used for repaying loans, for working capital, and for general corporate purposes. The money from the 'offer for sale' part of the IPO will go to the shareholders who offload their stake.

Also read: MTAR Technologies' Rs 600 crore IPO opens today: Should you subscribe?

This is the ninth IPO to hit the market so far in 2021. The others were Indigo Paints, Home First Finance Company, Nureca, Stove Kraft, Brookfield India REIT, Indian Railway Finance Corporation, RailTel Corporation of India and Heranba Industries.

The company manufactures critical and differentiated engineered products in the nuclear, space and defence, and clean energy segments, and owns seven manufacturing facilities in Hyderabad, including an export-oriented unit.

(Edited by : Jomy)

First Published:Mar 4, 2021 3:25 PM IST