MTAR IPO Share Allotment: Allotment of shares under the IPO of MTAR Technology is going to be final today. On March 15, the shares will fall into the demat account of those investors, who will be allotted. On March 16, MTAR Tech will be listed on the stock market. At present, this issue has received a great response from the investors. On March 5, the last day of the issue, it was subscribed nearly 200 times. Reserve Porson has also received fierce bids for retail investors. The premium has gone beyond 90 percent in the gray market. In such a situation, the listing of MTAR technology is expected to be at a premium. Given the company’s superior business model, most experts are also positive about its outlook. If you have also invested in an IPO, then you would like to know whether you will get its shares or not.
How many bids for which position
The IPO of MTAR Technology has received bids 200 times. The reserve position for retail investors is nearly 28.40 times full, while for non-institutional investors, Reserve Porson has received bids of about 651 times. Reserve Porson has received 165 times bids for qualified institute boys.
Check share allocation
Option 1: From the BSE website
For this, first you have to go to the BSE website.
After that the equity box has to be checked.
Then you have to enter the issue name in the dropdown.
After that you have to type your application number in the box.
After that you will have to give information about your PAN number.
Finally, you have to click on the search button, after which the complete information will be revealed.
Option 2: On the registrar’s website
KFintech Private Limited is the registrar for this issue. For this IPO, one has to go to the registrar’s website.
The website is https://kcas.kfintech.com/ipostatus/.
Type the company name in the dropdown.
After this, enter PAN number, application number or depository / client ID in the box
Then enter the captcha and click on the search button.
(Note – If the share is allotted, then the status will be visible.)
Increased premium in gray market
Shares of MTAR Technology are trading in the gray market with an increase of 510 to 520 rupees from the issue price. That is, at a premium beyond 90 per cent of the issue price. The price band of the IPO has been kept at Rs 574-575 and the face value is Rs 10 per equity share. The IPO’s lot size is 26 shares, that is, it is necessary to invest at least Rs 14950. Under the IPO, there will be a fresh issue of Rs 123.52 crore and an offer for sale of Rs 472.90 crore.
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.
Listing gain or hold
Nirali Shah, Head of Equity Research, Samco Securities, says that listing IPOs can cost money. MTAR Technology is the leading service provider in the field of Defense, Aerospace and Energy sector. The client list includes names like ISRO, NPCIL, DRDO, Bloom Energy, Rafael. The government has a focus on the manufacturing sector with Make in India. MTAR’s revenue and profits grew by 15.7% and 140.3% CAGR from 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 also expects growth in MTAR technology. The brokerage says that the company’s orderbook is strong and profits are better than Pierce companies. 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 as well. Brokerage house Geojit Financial Services has also suggested subscribing to the IPO.
(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.)