MTAR Technologies IPO: Opens tomorrow; Key details that an investor should know before investing

The initial public offering (IPO) of the Hyderabad-based MTAR Technologies will open for subscription on Wednesday, March 3, 2021. The precision engineering company seeks to raise Rs 596 crore through the public offer. The company has fixed the price band at Rs 574-575 apiece for the IPO. The face value of the shares issued is Rs 10 per share.

MTAR Technologies public issue lot size is 26 equity shares, thereafter.

KFintech Private Limited is the registrar for the IPO. JM Financial and IIFL Securities are the book running lead managers to the public issue.

MTAR Technologies' Rs 596 crore IPO comprises of offer for sale of Rs 472.90 crore and a fresh issue of Rs 123.52 crore and the tentative date of listing of shares is on March 16, 2021. The IPO will be listed in the National Stock Exchange and BSE.

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.

MTAR is a leading maker of nuclear, defence and aerospace equipment, fabrication facilities and fuel cells. Its client list includes ISRO, DRDO, Rafel, NPCIL and Bloom Energy. Currently, the firm has 7 state-of-the-art manufacturing facilities in Hyderabad, Telangana. The company manufactures critical and differentiated engineered products in the nuclear, space and defence and clean energy segments, and owns seven manufacturing facilities in Hyderabad, including an export-oriented unit.

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

The company recently sold 18.51 crore shares at Rs 540 apiece in a pre-IPO placement to schemes of SBI Mutual Fund and Axis Mutual Fund.

MTAR's revenue for the fiscal ended March 2020 stood at Rs 213.8 crore, and at Rs 177.3 crore for the nine-month ended December 2020.

The MTAR Technologies IPO will be the ninth public offer since the beginning of this year, after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft, Brookfield India REIT, Nureca, RailTel Corporation of India and Heranba Industries.