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MTAR Tech Share: On the last trading day of the week, the shares of MTAR Technologies, a company related to the defense sector, saw a sharp rise. During trading, the shares traded at Rs. It hit a record high of 2,817.75. The stock rose 15 percent on the BSE in intraday trade on Friday. The company’s shares have gained 23 percent in the last two days.
The reason for the boom
MTAR Technologies has obtained an industrial license to manufacture mechanical and electrical sub-systems. In an exchange filing, the company said the license would facilitate doing business with foreign multinational companies (MNCs) on various defense projects. After this big success, the shares of the company saw a stormy surge.
The position is strong
MTAR’s order book to grow at 53% CAGR in FY 2020-23 to Rs. 1170 crore has reached. The main reason for this is the order improvement in clean energy and other sectors. The company’s order book stood at Rs 1,080 crore in the June quarter. MTAR is expected to invest heavily in the nuclear sector by the end of FY2024. The company has 7 manufacturing units including one located in Hyderabad, Telangana.
The IPO came in 2021
MTAR Technology launched IPO in the year 2021. The issue price of this IPO was fixed at Rs 574-575 per share. Of this, 21.48 lakh new shares were issued while promoters and investors sold 82.24 lakh shares through offer for sale (OFS). The IPO was listed at a premium of 85% and the share price was Rs. 1000 was crossed. This IPO is considered to be one of the successful IPOs of the year 2021.