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MTAR Technologies Lists At 82.6% Premium At Rs.1050


MTAR Technologies in its stock market debut on Monday listed at a premium of 82.6 percent, at Rs. 1050 in comparison to its issue price of Rs. 575. The Rs. 592 crore IPO which ran between March 3 and March 5 was subscribed 200.79 times. The price band of the issue was fixed at Rs. 574-575 per share.

MTAR Technologies Lists At 82.6% Premium At Rs.1050

Ahead of the issue, most analysts were positive on the company's prospects. Brokerage firm ICICI Securities in a note on March 2 said "The company is available at a price to earnings (PE) of 56.5 times (post issue basis) on FY20 PAT. Taking cognisance of the huge growth opportunities for MTAR and a high margin business that would aid flow of profitability to the bottomline."

The funds raised from the public issue will be used towards repayment or prepayment (either part or full) of the various funding secured by the company, funding working capital requirements and general corporate purposes.

Going ahead, the fuel cell market is expected to grow at a CAGR of 14-15%. "This coupled with Bloom's tie up with Gail to deploy fuel cell technology is expected to augur well for the company," said ICICI Securities.

MTAR Technologies set-up in the year 1970 is a precision engineering solutions company. The company is into manufacturing of hi-precision indigenous components, subsystems and assemblies with components having close tolerances (5-10 micros).

As on December, the overall order book of the company was at Rs. 336 crore. Of the total Rs. 80 crore are generated from Bloom Energy, the company's division into clean energy. For Bloom Energy, the company manufactures hot boxes.

Read more about: ipo listing ipo
Story first published: Monday, March 15, 2021, 10:53 [IST]
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