MTAR Tech files for IPO, likely to raise ₹650 crore

December 20, 2020 0 By boss


Precision engineering solutions company MTAR Technologies has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).

The IPO will comprise a fresh issue of up to 40 lakh shares equity shares (face value of ₹10 each) and an offer for sale of up to a little over 82.24 lakh shares from promoter and investor selling shareholders. According to sources, it is expected to raise around ₹600-650 crore.

According to the prospectus, net proceeds from the fresh issue will be used by MTAR to repay in part or full ₹55 crore of the ₹62.16 crore of the fund-based borrowings and fund ₹95 crore of long-term working capital requirements besides attending to general corporate purpose.

The Hyderabad-based company is engaged in manufacturing and development of mission critical precision components and catered to nuclear, space, defence and clean energy sectors. It currently operates out of seven manufacturing facilities, including an export oriented unit, located in Hyderabad. The company is in the process of establishing a sheet metal facility in Adibatla and also plans to construct additional shed for specialised fabrication work for domestic and international customers.

The company has precision engineering capabilities to build nuclear and pressurized water reactors, aerospace engines, missile systems, aircraft components and many such other critical components and assemblies. Its product portfolio includes 14 kinds of products in the nuclear sector, six products in the space and defence sectors, and three in the clean energy sector. MTAR is a key partner to ISRO, DRDO, Nuclear Power Corporation of India and US-based Bloom Energy besides catering to some other well-known entities like Bharat Dynamics and Hindustan Aeronautics. As on November 30, the aggregate order book of MTAR stood at ₹356.50 crore, the prospectus said.

The company has appointed JM Financial and IIFL Securities as the book running lead managers to the issue.

You have reached your limit for free articles this month.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access

Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations

A select list of articles that match your interests and tastes.

Faster pages

Move smoothly between articles as our pages load instantly.

Dashboard

A one-stop-shop for seeing the latest updates, and managing your preferences.

Briefing

We brief you on the latest and most important developments, three times a day.

Support Quality Journalism.

*Our Digital Subscription plans do not currently include the e-paper, crossword and print.



Source link