MTAR Technologies IPO subscription open from today; experts recommend 'SUBSCRIBE' for big listing gains
MTAR Technologies IPO subscription: MTAR Technologies IPO (Initial Public Offer) is open for subscription from today. The stock market experts have high expectations from this public issue as the company is from the Defense industry.
MTAR Technologies IPO subscription: MTAR Technologies IPO (Initial Public Offer) is open for subscription from today. The stock market experts have high expectations from this public issue as the company is from the Defense industry. They are of the opinion that the company's order book is strong and the recent central government's push on the Make In India, Vocal for Local and Aatma Nirbhar Bharat, etc. augurs well for the Indian industries that includes defense too. Since MTAR Technologies is one of the leading defense sector companies in India, the MTAR Technologies IPO subscription offer should not be missed for both listing gains and long-term gains. Experts are of the opinion that MTAR Technologies IPO listing gains will be to the tune of around 20-25 per cent, depending upon the mood of the market.
Speaking on the MTAR Technologies IPO - whether to buy or avoid - Avinash Gorakshkar, Head of Research at Profitmart Securities said, "MTAR Technologies IPO is a good public issue to subscribe as it is expected to deliver higher returns in short-term and long-term time horizon. For those who believe in short-term investment, one can subscribe to MTAR Technologies public issue for 20-25 per cent listing gains. In fact, one can get even higher listing gains if any of the mutual fund houses invest heavily in it as we witnessed in the RailTel shares post-listing."
Gorakshkar went on to add that MTAR Technologies share price is expected to rise post-listing date as it's a defense sector company, which is expected to get push from the government sponsored initiatives like Make In India, Local for Vocal, Aatma Nirbhar Bharat, etc. So, the company's order book is expected to become stronger.
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Standing in sync with Avinash Gorakshkar; Sumeet Bagadia, Executive Director at Choice Broking said, "One can subscribe for the MTAR Technologies IPO as the IPO market segment has been doing well in the last six to eight months. This is because of some section of the stock market investors getting focussed on the IPO market and coming out of it on the IPO listing date. They are happy with even 5-10 per cent listing gains as such gains in less than one month is huge."
MTAR Technologies has a wide product portfolio, modern technology and state-of-the-art manufacturing facilities, a strong and diversified supplier base for sourcing raw materials, aligned with a track record of growth in financial performance. The company is looking to raise Rs 596 crore through the public issue which is an amalgamation of an Offer for Sale (OFS) by existing shareholders and a fresh issue of equity shares. MTAR Technologies, a leading maker of nuclear, defence & aerospace equipment, fabrication facilities and fuel cells. Through the issue, MTAR Technologies promoters will prune their stake from the existing 62.24 per cent to 50.25 per cent, while public shareholding in the company will increase to 49.75 per cent from 37.76 per cent pre-issue.
MTAR Technologies IPO investors can bid for the issue in the price band of Rs 574-575 per share, in a bid lot of 26 equity shares, translating to a minimum investment of Rs 14,950. MTAR Technologies is selling over 1 crore shares through the issue, where 50 per cent of the quota is reserved for qualified institutional buyers (QIB), 15 per cent if for high net worth individuals (HNI) and the remaining 35 per cent for retail investors. The funds raised through the issue will be used by MTAR Technologies to repay or prepay its debt and funding working capital requirements. The IPO of MTAR Technologies will remain open for subscription till the end of this week.
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