MTAR Technologies IPO opens tomorrow: 10 points
Hyderabad-based MTAR Technologies will open its ₹596-crore initial public offering (IPO) for subscription on Wednesday. The IPO comprises a fresh issue of 21.48 lakh shares and an offer-for-sale of 82.24 crore shares and will close on March 5. MTAR is a leading maker of nuclear, defence and aerospace equipment, fabrication facilities and fuel cells. The company recently sold 18.51 crore shares at ₹540 apiece in a pre-IPO placement to schemes of SBI Mutual Fund and Axis Mutual Fund.
Here’s everything you need to know about the MTAR Technologies IPO:
1. The price band has been fixed at ₹574-575 apiece for the IPO.
2. The face value of the shares issued is ₹10 per share.
3. Through the IPO, the company is making a fresh issue of shares aggregating up to ₹116 crore.
4. Offer for sale through the IPO is worth ₹444.1 crore.
5. The minimum bid size for the IPO is fixed at 26 equity shares.
6. The IPO will be listed in National Stock Exchange and BSE.
7. The book running lead managers of the IPO will be IIFL Securities and JM Financial.
8. 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.
9. The company has three key customers in the fuel cell, nuclear, and space and defence segments. In the fuel cell segment, Bloom Energy is its largest customer. In the nuclear segment, 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 Defence Research and Development Organisation (DRDO) are the key customers of the company. The company also co-develops critical sub-systems like Liquid propulsion Rocket Engines, Cryogenic Engines and other parts for space programs like Chandrayan-II, Mangalyaan and Agni missile programmes.
10. MTAR’s revenue for the fiscal ended March 2020 stood at ₹213.8 crore, and at ₹177.3 crore for the nine month ended December 2020.