The price band for the offer has been decided at Rs 574-575 per share.
In the unofficial market for unlisted shares, MTAR is trading at a premium of Rs 245 per share, Abhay Doshi, a dealer of unlisted shares, said. This translates into a 43 per cent premium over the price band.
MTAR plans to raise Rs 597 crore from the primary market. This includes a fresh issue of shares worth Rs 124 crore and an offer for sale of Rs 473 crore worth of shares. The company has already undertaken a pre-IPO placement of 1,851,851 shares, aggregating to Rs 100 crore with Axis MF and SBI MF.
Out of the total shares on offer, 50 per cent shall be available for allocation on a proportionate basis to qualified institutional buyers (QIBs). Further, not less than 15 per cent of the offer shall be available for non-institutional bidders and the rest for retail investors.
The company proposes to utilise the net proceeds from the fresh issue towards repayments of borrowings by the company, funding working capital requirements and for general corporate purposes.
MTAR said it will raise money from anchor investors on Tuesday, March 2.
The company’s key strength lies in its engineering capabilities which has enabled it to consistently offer quality complex precision manufactured assemblies and components to its customers in highly-valued strategic and key sectors like clean energy, nuclear, and space and defense segments.
MTAR Technologies’ key portfolio comprises three kinds of products in the clean energy sector, 14 products in the nuclear sector and six products in space and defence sectors.
MTAR has a long-standing relationship with its customers such as Nuclear Power Corporation of India Limited (NPCIL), the Indian Space Research Organisation (ISRO), the Defence Research and Development Organisation (DRDO) and Bloom Energy (USA).
JM Financial and IIFL Securities are appointed as the BRLMs to the issue.
