The institutional part in the IPO was subscribed almost 165 times. Non-institutional investors’ portion, also called high net worth individuals, was subscribed over 650 times and the retail portion over 28 times. This was the highest ever subscription to an IPO of size of over Rs 200 crore and one of the highest ever in the manufacturing sector, merchant bankers said.
Given the strong subscription figure that was recorded from day 1 of the IPO, the grey market premium for MTAR Tech shares have been rising. On Friday evening it was in the Rs 530-535 per share range.
Since the absence of about three months — between mid-March and mid-June last year when IPOs had completely dried up due to the Covid-related nationwide lockdowns — such offers have made a strong comeback. Happiest Minds Technologies IPO, which came in June 2020, was subscribed 151 times.
Several other IPOs have also been subscribed about 150 times or more as merchant bankers advised promoters to price the offers attractively. Most of the companies that went public also had strong fundamentals, which too helped attract a large number of investors, market players said.
The strong subscription figure for MTAR Tech IPO also shows how a former top venture capitalist made huge money. Mathew Cyriac, an ex-Blackstone India honcho, whose entities Fabmohur Advisors and Solidus Advisors had acquired over a third in the company in 2017 for about Rs 39 per share, sold a part of the stake in the IPO, likely to be priced at Rs 575 per share.