The IPO of MTAR Technologies has got a massive response from investors and the issue was subscribed more than 200 times. The ?597 crore IPO received bids for 145.79 crore equity shares against an offer size of 72.6 lakh equity stocks. The grey market premium on MTAR Tech shares have further gone up after the dazzling response, say market observers.

The share allotment is likely to be finalised on March 10 and listing is likely on March 16, say brokerages. KFin Technologies Private Limited is the registrar and investors can check allotment status on its website.

"As MTAR Tech has got dazzling response from all categories of the investors. The oversubscription added fuel to the premium which was already hot. From past couple of days the premium was around ?440-450 which jumped to 540-545 ? levels after huge oversubscription. We may say its a doubler candidate on listing," said grey-market tracker Abhay Doshi, who is the founder of UnlistedArena.com, which deals in pre-IPO and unlisted shares.

Ahead of the IPO, MTAR Technologies, a precision engineering solutions company, had raised ?179 crore from anchor investors.

The price band for share sale was fixed at ?574- 575 per equity share and the issue got fully subscribed within first few hours on the first day of the issue itself on Wednesday.

The portion reserved for non-institutional category or HNI segment received 650.79 times subscription, qualified institutional buyers category 165 times and retail 28.4 times.

Despite the issue being aggressively priced, many brokerages recommended "subscribe", citing limited competition for the products they manufacture.

MTAR Tech is a national player in precision engineering industry engaged in the manufacture of mission critical precision components with close tolerances (5-10 microns), and in critical assemblies. The company works with clients like Indian Space Research Organization, Defence Research and Development Organization, Nuclear Power Corporation of India Ltd and US-based Bloom Energy Corp, besides catering to other well-known establishments like Bharat Dynamics and Hindustan Aeronautics.

"At the upper price band of Rs.575, MTAR is available at a P/E of 47.3x (annualized basis on FY21E EPS of Rs.12.2) which is aggressively priced. With no listed peers and a positive sentiment in the space and defence sectors due to Make in India and Atmanirbhar Bharat with limited competition for the products they manufacture, we assign a Subscribe rating, with a long term perspective," Geojit said in a note.

MTAR currently operates out of seven manufacturing facilities, including an export-oriented unit located in Hyderabad, Telangana, and has been servicing the defense, aerospace and energy sectors for more than four decades. (With Agency Inputs)