MTAR Technologies was expected to have a bumper listing, given the overwhelming response to its IPO and it did not disappoint. As against the IPO price of Rs.575 it got listed on the BSE at a fantastic Rs.1063.90, a premium of 85%.
The IPO was subscribed by a huge 200.79 times with the biggest response coming from HNIs, whose portion was subscribed by 651 times, followed by qualified institutional buyer (QIB) at 165 tines and retail investors by 28 times.
In our New Issue Analysis, we had said that MTAR’s pricing was attractive considering its superior margin profile of 15-16% net margin, steady revenue growth rates of 15-20% coupled with extremely high entry barriers. Company’s typical order book execution period of 1.5 years fortifies this optimism.
We had concluded saying, “Niche presence serving growing industries supported by strong financial performance, makes this company an attractive bet in the small cap space.”