MTAR Technologies shares kicked off the first day with a massive 82 percent premium on the National Stock Exchange, on March 15, largely in line with analysts' expectations.
Experts feel the listing premium is justified given its lead position in the nuclear, defence and aerospace equipment space, no peers to compare with among listed companies, and stellar IPO subscription.
The stock opened at Rs 1,063.90 on BSE against issue price of Rs 575, a 85 percent premium over issue price.
Precision engineering solutions company MTAR Technologies raised Rs 596 crore through public issue, which saw strong subscription of 200.79 times during March 3-5 period.
Net proceeds from the fresh issue and pre-IPO placement will be utilised for debt repayment and working capital requirements.
The company mainly serves customers in the clean energy, nuclear & space and defence sectors. It has precision engineering expertise with complex product manufacturing capabilities, and wide product portfolio leading to long-standing relationships with the customers.
"MTAR Technologies is uniquely positioned given that it is one of a kind company catering to marquee clients like ISRO, NPCIL, DRDO, Bloom Energy and Rafael. We believe that the company is uniquely positioned to benefit from the government's focus on defence sector and make in India initiative. We are positive on the long-term prospects of the company," Jyoti Roy of Angel Broking.
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