MTAR Technologies IPO grey market premium rises to Rs 450 per share

MTAR Technologies initial public offer's (IPO) grey market premium is trading at a strong Rs 450 per share today. This implies a listing price of Rs 1,025 compared to the IPO issue price of Rs 575 per share. MTAR Technologies' IPO is being held in a price band of Rs 574-Rs 575 per share. The GMP, which stood at Rs 200 on February 25 has more than doubled in six sessions.

The surge in GMP of the IPO can be attributed to the rally in market this week. In the last three sessions, Sensex has rallied 2,347 points and Nifty gained 715 points.

The ongoing share sale was subscribed 3.68 times on March 3 (first day of subscription) with investors putting in bids for 2.67 crore equity shares against the offered size of 72.60 lakh equity shares. Retail investors submitted bids 6.93 times against their reserved portion.

The portion set aside for non-institutional investors was subscribed 1.02 times. The IPO through which the Hyderabad-based firm plans to raise Rs 600 crore will close on March 5. The company collected Rs 180 crore from 15 anchor investors on Tuesday.

MTAR Technologies IPO subscribed 3.7 times on first day

It allocated 31.11 lakh shares at Rs 575 per share to anchor investors. The IPO comprises a fresh issue of 21,48,149 equity shares and an offer for sale of 82,24,270 equity shares by promoters and investors.

Applications in the IPO can be made in a minimum lot size of 26 shares for which Rs 14,950 would have to be spent. An investor can buy a maximum 13 lots of 338 shares amounting to Rs 1,94,350. JM Financial and IIFL Securities have been appointed as the book-running lead managers to the issue. Equity shares of MTAR Technologies will be listed on BSE and NSE.

MTAR Technologies IPO opens today: Should you subscribe to the issue?