By Dominick Rodrigues
Mumbai: MTAR Technologies, a Hyderabad-based precision engineering solutions company, is coming out with an IPO of Rs 574 to Rs 575 per Equity Share– and aggregating Rs 597 crores– from March 3 to March 5, 2021.
MTAR is engaged in the manufacturing and development of mission critical precision components and critical assemblies catering to clean energy, nuclear and space and defense sectors.
The IPO is a fresh issuance of upto 21,48,149 equity shares, of Rs 10 face value, aggregating up to 124 Cr and an Offer for sale of up to 8,224,270 equity shares aggregating up to Rs 473 cr, of face value of Rs 10 each, by Selling Shareholders. MTAR has, in consultation with the Book Running Lead Managers, undertaken a Pre-IPO Placement of 1,851,851 Equity Shares, aggregating to Rs. 100 Cr with Axis and SBI mutual funds.
P Srinivas Reddy, Promoter & Managing Director, MTAR Technologies Ltd, said that the Company proposes to utilise the Net Proceeds from the Fresh Issue towards repayments of borrowings by the Company, funding working capital requirements and for general corporate purposes.
He said the company’s key strength lies in its engineering capabilities, which enabled it to consistently offer quality complex precision manufactured assemblies and components to its customers in highly-valued strategic and key sectors like clean energy, nuclear, and space and defense segments.
“MTAR Technologies’ key portfolio comprises of three kinds of products in the clean energy sector, 14 kinds of products in the nuclear sector and six kinds of products in the space and defence sectors. Delivery of complex products with stringent quality requirements within stipulated timelines in majority of cases has earned MTAR a long-standing relationship with its customers such as Nuclear Power Corporation of India Limited (“NPCIL”), the Indian Space Research Organisation (“ISRO”), the Defence Research and Development Organisation (“DRDO”), and Bloom Energy (USA).”
JM Financial and IIFL Securities are appointed as the BRLMs to the Issue.
MTAR has seven manufacturing units including an export-oriented unit with state-of-the-art facilities each based in Hyderabad, Telangana and is in the process of establishing an additional manufacturing facility at Adibatla in Hyderabad, which is expected to become operational in Fiscal 2022.
The company has consistently undertaken expansion of its manufacturing facilities through internal accruals, in the past with a view to capture increasing demand in the future. Over the years, MTAR has made investments in its processes, infrastructure and systems to develop sophisticated and modern manufacturing technology and become a leading player in the nuclear and space and defence sectors. It has also designed and built, with inhouse expertise, certain sophisticated special purpose machines instead of importing comparable machines.
The Company has a long-standing relationship of around four decades with customers such as the Indian Space Research Organisation (ISRO) and the Defence Research and Development Organisation (DRDO) and has supplied a variety of mission critical products to them. MTAR’s contribution was integral to Chandrayaan 2 and Mangalyaan missions by supplying products such as liquid propulsion engines, cryogenic engines including turbo pumps, booster pumps, gas generators and injector heads for such engines and electro-pneumatic modules etc. to launch vehicles.
For the Defence sector, MTAR undertook complex assemblies for the DRDO, including assembly for Agni missiles, and the assembly of secondary injection thrust vector control (“SITVC”) valves and hydraulic fin tip control (“HFTC”) valves. MTAR has also consistently supplied products like hot boxes, hydrogen boxes and electrolyzers to Bloom Energy, a USA-based Company and has also supplied critical defence products to an Israeli defence technology company.
