MTAR Technology Listing Today: MTAR technology has made a great entry in the stock market. On March 15, the share of MTAR Technology was listed on BSE at an 85% premium. The issue price of the IPO was Rs 574–575 per share. While on the BSE it was listed at a price of Rs 1064. After listing, the stock strengthened to Rs 1110. Currently, the company’s stock seems to be trading at a price of Rs 1097. This is also 3 percent more than the listing price. Let us know that the IPO received a great response from the investors and in the gray market, the stock was continuously trading at a premium.
Bids were received 200 times
The IPO of MTAR Technology had received 200 times bids. For retail investors, Reserve Porson was nearly 28.40 times full, while for non-institutional investors, Reserve Porson received around 651 times bids. Reserve Porson received 165 times bids for qualified institution buyers.
What does the company do
MTAR Technology has been serving in the field of Defense, Aerospace and Energy sector since last 4 decades. The client list includes names like ISRO, NPCIL, DRDO, Bloom Energy, Rafael. MTAR Tech recently raised Rs 100 crore from SBI Mutual Funds and Axis Mutual Funds at a price of Rs 540 per share through pre IPO placements. With this, the valuation of the company has increased to Rs 1660 crore. The order book of the company is also very strong. The debt on the company is also very low.
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Listing gain or hold
Nirali Shah, Equity Research Head, SAMCO Securities, says that listing gains in IPOs should be leveraged. MTAR’s revenue and profits grew by 15.7% and 140.3% CAGR during FY18 to FY20. The company’s financial record is better. Talking about the risk side, 49% of the company’s revenue comes from the major 3 clients.
Brokerage house LKP Research has also expected good growth in MTAR technology. The brokerage says that the company’s order book is strong and profits are better than Pierce companies. The government has a focus on the manufacturing sector with Make in India. The company has shown a growth of 16.5 per cent CAGR in the last 3 years. EBITDA margin is 28.5 per cent in FY 2020. Good growth is expected in the future too. Brokerage house Motilal Oswal also believes that MTAR Tech can hold for a longer period. The government has a focus on the defence sector with Make in India. The stock will benefit from this.
(Note: We have given information here based on the report of experts and brokerage houses. There are risks in the stock market, so consult experts at your level before investing.)