MTAR Tech IPO Subscribed 10.27 Times On Second Day, Receives Huge Support From Retail Investors

Data available on the exchanges revealed that the Rs 597-crore IPO received bids for 7.45 crore equity shares against the offered size of 72.6 lakh equity stocks.

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New Delhi: The initial public offering of MTAR Technologies was subscribed 10.27 times on Thursday which is its second day of the bidding process, receiving a lot of support from retail investors.

Data available on the exchanges revealed that the Rs 597-crore IPO received bids for 7.45 crore equity shares against the offered size of 72.6 lakh equity stocks, making it a subscription of 10.27 times.

In further details, the portion reserved for retail investors was subscribed 16.55 times, the non-institutional category 8.04 times, and the portion reserved for qualified institutional buyers was subscribed 96 percent.

The IPO consists of fresh issuance of up to 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 is available for public subscription till March 5.

The Hyderabad-based company has precision engineering capabilities to build nuclear and pressurized water reactors, aerospace engines, missile systems, aircraft components and many other critical components and assemblies.

MTAR Technologies had on Tuesday raised Rs 179 crore from anchor investors.

Besides attending to general corporate purposes, the proceeds will be used to repay debt and fund long-term working capital requirements.

JM Financial and IIFL Securities have been appointed as the book-running lead managers to the issue. Equity shares of MTAR Technologies will be listed on BSE and NSE.