Sensex Ends 447 Points Higher; Automobile & IT Stocks Rally

In the latest developments from the IPO space...

Hyderabad-based MTAR Technologies will open its Rs 5.96-billion initial public offering (IPO) for subscription on Wednesday.

The IPO comprises a fresh issue of 2.15 million shares and an offer-for-sale (OFS) of 822.4 million shares and will close on March 5.

MTAR is a leading maker of nuclear, defense and aerospace equipment, fabrication facilities, and fuel cells. The company recently sold 185.1 million shares at Rs 540 apiece in a pre-IPO placement to schemes of SBI Mutual Fund and Axis Mutual Fund.

The price band has been fixed at Rs 574-575 apiece for the IPO.

According to the company's prospectus, proceeds from the fresh issue will be used for repayment or pre-payment of its borrowings and funding working capital requirements.

The company has three key customers in the fuel cell, nuclear, and space, and defense segments.

In the fuel cell segment, Bloom Energy is its largest customer. In the nuclear segment, the Nuclear Power Corporation of India is the company's key customer. In the space and defence segment, clients such as the Indian Space Research Organisation (ISRO) and Defence Research and Development Organisation (DRDO) are the key customers of the company.

How this IPO sails through remains to be seen.

Moving on to stock-specific news...

Nestle India was among the top buzzing stocks today.

In a recently held analysts' meet, Nestle India's management said it expects to sustain volume-led double-digit growth.

Nestle registered a volume growth of 6% in CY20 aided by strong growth in Maggi Noodles (approximately 20% in Q4 CY20) and KitKat (more than 20% in H2 CY20).

Some key challenges faced by the company during the pandemic were supply constraints in the noodles category in Q2 CY20 and demand contraction from out of home channels in the beverage segment.

The company also maintained its strong focus on driving increased distribution reach in the rural markets.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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