IPO investors have lots of choices coming up, thanks to the fiscal year-end deadline for launching public offers before the approvals lapse. Next in line is precision components manufacturers MTAR Technologies. The upcoming IPO is priced in the range of INR574 – 575 per share and investors have time till 5 March 2021 to bid. MTAR Technologies IPO GMP has started on a strong note and we will update you about the latest developments on this page.
MTAR Technologies IPO details
| Subscription Dates | 3 – 5 March 2021 |
| Price Band | INR574 – 575 per share |
| Fresh issue | 2,148,149 shares (INR123.30 – 123.52 crore) |
| Offer For Sale | 8,224,270 shares (INR472.07 – 472.89 crore) |
| Total IPO size | 10,372,419 shares (INR595.37 – 596.41 crore) |
| Minimum bid (lot size) | 26 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
At the upper end of the pricing band, the company is asking for a P/E ratio of 51.75 for a business that generates Return on Net Worth (RONW ) of 13.91%. We are not passing any judgment as the season appears to be generating more such cases which eventually go on to reward investors on listing. And there is strong grey premium to boot. It started at nearly 40% of the issue price and has crossed 85% of the offer price according to latest information in our checks with dealers and brokers. Please remember this might go up or down in the coming days.
Read Also: Best IPOs in 5 years that doubled investors’ money
MTAR Technologies IPO GMP (Grey Market Premium) rates
| Date | GMP (in INR) | Kostak (in INR) | Subject to Sauda (in INR) |
| 13 Mar 2021 | 500 | – | 11,000 |
| 12 Mar 2021 | 500 | – | 10,500 |
| 10 Mar 2021 | 550 | 550 | 9,500 |
| 9 Mar 2021 | 600 | 600 | 10,000 |
| 8 Mar 2021 | 520 | 600 | 10,000 |
| 6 Mar 2021 | 500 | 600 | 9,500 |
| 5 Mar 2021 | 450 | 550 | 8,000 |
| 4 Mar 2021 | 400 | 450 | 6,500 |
| 3 Mar 2021 | 450 | 500 | 7,000 |
| 2 Mar 2021 | 400 | 450 | 6,500 |
| 1 Mar 2021 | 400 | 450 | 6,500 |
| 27 Feb 2021 | 380 | 400 | 6,000 |
| 26 Feb 2021 | 300 | 350 | 4,000 |
| 25 Feb 2021 | 250 | 300 | – |
The company has an impressive list of clients including Bloom Energy, NPCIL, ISRO and DRDO. Over the years, it has posted decent top-line growth but its profits haven’t been consistent.
MTAR Technologies’ financial performance (in INR crore)
| FY2018 | FY2019 | FY2020 | 9M FY2021 | |
| Revenue | 160.5 | 185.9 | 218.1 | 178.0 |
| Expenses | 143.4 | 145.6 | 172.6 | 138.4 |
| Net income | 5.4 | 39.2 | 31.3 | 28.1 |
| Net margin (%) | 3.4 | 21.1 | 14.4 | 15.8 |
A very big IPO. Highly over subscribed as expected
It was one of the best IPO this year. But I missed it.
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