MTAR Tech files DRHP for IPO

MTAR Tech files DRHP for IPO

MTAR Technologies, a precision engineering solutions company has filed its draft red herring prospectus (DRHP) with the market regulator. Hyderabad based company engaged in the manufacturing and development of mission critical precision components with close tolerances and critical assemblies catering to nuclear, space, defense and clean energy sectors likely to raise about Rs 650 crore through initial public offer (IPO) according to bankers.

The IPO is comprises a fresh issue of up to 40 lakh shares and an offer for sale of up to 82.24 lakh shares from promoters.

The net proceeds from the fresh issue will be used to repay the debt and fund long-term working capital requirements besides attending to general corporate purpose. JM Financial and IIFL Securities are the bankers for the Issue.

MTAR currently operates out of 7 manufacturing facilities including an export oriented unit located in Hyderabad, Telangana and has been servicing the defense, aerospace and energy sectors for more than 4 decades.

The aggregate order book of the company stood at Rs 356.50 crores as on Nov 30, 2020. Between FY18-20 the company’s total income and EBITA have grown at a CAGR of 16.56% and 37.80 % respectively. As on November 30, 2020, their product portfolio includes 14 kinds of products in the nuclear sector, 6 kinds of products in the space and defense sectors, and 3 kinds of products in the clean energy sector and has a healthy mix of developmental and volume-based production.

 

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