MTAR Technologies Limited which had tapped the capital markets with its fresh issue of 21.48 lac shares and an offer for sale of 82.24 lac shares in a price band of Rs 574-575 had a stellar debut on listing day. Shares in the price discovery pre-open session debuted at Rs 1063.90 on BSE and Rs 1050 on NSE. The traded volume at the pre-open was 1,13,713 at BSE and 11,23,347 shares on NSE.
After the pre-open, the high on BSE was Rs 1,154, the low was Rs 1,035.70 and the close was Rs 1082.25, a gain of Rs 507.25 or 88.22%. On NSE, the high was Rs 1,154.90, low was Rs 1,040 while the close was Rs 1,082.50, a gain of Rs 507.50 or 88.26%. The weighted average on the two exchanges was Rs 1,093.94 and Rs 1,093.62 respectively which makes it quite close to the day’s closing price.
| Exchange | Open | High | Low | Close | Net Change | % Gain/ Loss | Wt.Avg | Volume | Delivery | Del %age |
| BSE | 1063.90 | 1154.00 | 1035.70 | 1082.25 | 507.25 | 88.22 | 1093.94 | 1630020 | 608560 | 37.33 |
| NSE | 1050.00 | 1154.90 | 1040.00 | 1082.50 | 507.50 | 88.26 | 1093.62 | 14975915 | 4780652 | 31.92 |
| Total | 16605935 | 5389212 | 32.45 |
The traded volume on the two exchanges was 166.05 lac shares which was 1.6 times the issue size of 103.72 lac shares. It was 2.29 times the traded quantity of the non-anchor portion of 72.60 lac shares. Delivery quantity was 53.89 lac shares which was 32.45% of the traded volume. It was 51.96% of the issue size and 74.22% of the non-anchor portion.
The surprising part was that with even 166 lac shares being traded and about 54 lacs being delivered, there were no institutional trades reported either on the buy or sell side. This makes the delivery percentage vulnerable, and the share could be under pressure going forward. This is because the share could have been bought by Robin Hood investors on day one.
The issue had received excellent response and was well subscribed. The issue saw the QIB portion subscribed 164.99 times, HNI portion subscribed 650.71 times, Retail portion subscribed 28.40 times. There were 29.17 lac applications in all. The issue was subscribed overall 200.79 times. The cost for the leveraged HNI would be as much as the issue price in terms of interest.
Earlier the company allotted a uniform 1,73,914 shares or 5.59% of the anchor allocation to 13 anchor investors. The remaining two, Axis Mutual Fund and SBI mutual Fund who had invested in the pre-ipo placement were allotted higher number of shares. They were allotted 4,25,412 shares or 13.67% of the anchor portion.
While the overall performance of the share was creditable with the share gaining 88% on the opening day, it is likely to be under pressure going forward.
