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MTAR Technologies Lists At Rs 1,063.90 At A Premium Of 85 per cent

The precision engineering firm opened its public offering on March 3 and closed the bidding process on March 5. Investors pumped in heavily in the IPO (Initial Public Offering) and the issue was oversubscribed by 201 times. The issue consisted of 10,372,419 equity shares which accounted for a total of Rs 596 crore.

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MTAR Technologies, a company that undertakes precision machining, assembly and specialized fabrication, among other thing, made an outstanding debut on the stock exchange on Monday, March 15.  The company listed on the exchanges at a premium, above 85 per cent from its issue price of Rs 575 per equity share. The shares of the company opened at Rs 1,063.90 in the BSE and at Rs 1,050 in the NSE.

The precision engineering firm opened its public offering on March 3 and closed the bidding process on March 5. Investors pumped in heavily in the IPO (Initial Public Offering) and the issue was oversubscribed by 201 times. The issue consisted of 10,372,419 equity shares which accounted for a total of Rs 596 crore.

In the bidding process, the issue received bids for 1,45,79,03,122 shares against their offer of 72,60,694 shares. A week earlier, shares of the company were trading at a premium of Rs 485-490 in the grey market, said analysts with knowledge of the issue. 

The company proposed that it will use the net proceeds from the issue to repay their borrowings, fund their working capital requirements and generate corporate purposes.

MTAR Technologies is a precision engineering company which deals with manufacturing and other services of products related to space and defence, nuclear and clean energy and currently owns seven manufacturing hubs in Hyderabad.

"Considering the company’s expertise in providing wide range of precision engineering products with complex manufacturing capability, high entry barrier, strong balance sheet & management; we give this IPO a "Subscribe" rating", a brokerage firm said before the issue was launched.