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MTAR Technologies Ltd IPO

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MTAR Technologies Ltd, leading precision engineering solutions company is coming up with its Initial Public Offering on Wednesday, March 03. The issue will be open until March 05 at a fresh issue of shares aggregating up to ₹123.52 crore.

 

Object of the Offer
The offer comprises of a Fresh Issue (₹124cr at upper end of the price band) and an Offer for Sale (₹473cr, upper end) aggregating to ₹596cr. Proceeds from the fresh issue are proposed to be utilized for

  • ₹63cr towards repayment or prepayment in full or part of borrowings availed by the Company
  • ₹95cr towards funding working capital requirements and
  • General corporate purposes

MTAR Technologies IPO Promoter Holding

% Shareholding

Pre IPO

Post IPO

Promoter

62.2

50.3

Public

37.8

49.7

 

MTAR Technologies Ltd IPO Subscription Details

Company

MTAR Technologies Ltd

Issue Type

Book Building

Issue Size (In ` Crore)

₹596.41

Lot Size

26 equity shares

Open Date

03 March, 2021

Close Date

05 March, 2021

Offer Price

₹574 to ₹575 per equity share

DRHP

Click here

Subscription Status

Category Subscription Status Shares Offered
Qualified Institutional 164.99 Times 2,074,484
Non Institutional 650.79 Times 1,555,863
Retail Individual 28.40 Times 3,630,347
Others - -
Total 10.27 Times 7,260,694

MTAR Technologies IPO Subscription Details (Day by Day)
Date QIB NII Retail Total
March-3-2021 5:00 0.00x 1.02x 6.93x 3.68x
March-4-2021 5:00 0.96x 8.04x 16.55x 10.27x
March-5-2021 5.00 164.99x 650.79x 28.40x 200.79x

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About MTAR Technologies Ltd IPO

MTAR Technologies (MTAR) is a leading precision engineering solutions company engaged in the manufacture of mission critical precision components with close tolerances (5-10 microns), and in critical assemblies, to serve projects of high national importance, through its precision machining, assembly, testing, quality control, and specialized fabrication competencies, some of which have been indigenously developed and manufactured (Source: CRISIL Report). MTAR primarily serves customers in the clean energy, nuclear and space & defence, sectors. Some of its key customers include Nuclear Power Corporation of India Limited, Indian Space Research Organisation, Defence Research and Development Organisation, and Bloom Energy Inc., United States. For the 9 month ending December 31, 2020, its revenue from customers in the clean energy sector, the nuclear sector and the space and defence sectors accounted for 49.33%, 27.13% and 20.59%, respectively. As on December 31, 2020, its aggregate order book stood at ₹336cr. It operates out of seven manufacturing facilities, including an export-oriented unit situated in Hyderabad, Telangana.


MTAR Technologies - Financials


(₹cr, unless specified)

FY18

FY19

FY20

9MFY21

Total income

161

186

218

178

EBITDA

33

56

62

54

EBITDA Margin (%)

20.4

30.1

28.6

30.2

Diluted EPS (₹)

1.9

13.9

11.1

10.5

ROE (%)

2.6

16.7

13.9

11.4*

ROCE (%)

9.6

17.0

19.8

14.2*

Debt to Equity (x)

0.1

0.1

0.1

0.3

P/E^(x)

326

45

56

47**

Source: RHP, ^not annualized, ^P/E at the Cap Price, **based on annualized earnings

Key Positives:
  • Precision engineering expertise with complex product manufacturing capability
    MTAR develops and manufactures a wide range of mission critical assemblies and precision components with close tolerances (5-10 microns), through its precision machining, assembly, and specialized fabrication facilities, for onward usage by its customers in the clean energy, nuclear, and space and defence sectors in India, and abroad. These capabilities are further supported by an extensive and stringent testing and quality control mechanism undertaken at each stage of the production process to ensure that the finished product conforms to the exact requirement of its customers and successfully passes all validations and quality checks. MTAR’s capability in measuring and maintaining quality and measurement records at each level of the process is a key enabler. In addition, MTAR’s facilities are equipped with requisite equipment for dimensional and geometrical inspection to establish micron level adherence to specifications as set by its customers.

  • Strong and diversified supplier base for sourcing of raw materials
    The Company has, over the years, developed a robust supply chain for the sourcing of a wide variety of specialized raw materials used in the manufacture of mission critical precision products. While the company sources materials from third party suppliers depending upon the requirement of a project that they undertake, in certain instances, especially involving the critical and sensitive raw material and bought out items for the manufacture of certain products are directly procured and supplied by its customers, mostly belonging to the space and defence sectors. The materials utilized for products catered to the clean energy and nuclear sectors, and other consumables and bought-outs are mostly sourced from third party suppliers, both domestic and global. Given that raw material expenses constitute a significant portion of its overall cost, MTAR benefits majorly from a strong, spread out and diversified supplier base. This enables MTAR to negotiate favorable terms and even avail better discounts. Additionally, the company believes that its diversified supplier base helps them in minimizing supplier risk on account of low supplier dependency.

Key Risks:
  • MTAR depends on Bloom Energy Inc. and a limited number of other customers for a significant portion of its revenue. The contribution of Bloom Energy as a percentage of the revenue from operations accounted for 49.14%, 61.43%, 64.53%, and 49.33% for FY18, FY19, FY20 and 9MFY21 respectively. The loss of one or more of its top three customers or a significant reduction in demand for its products from such top three customers, MTAR’s failure to succeed in tendering for projects for them in the future despite its previous track record, or a decline in their business performance may adversely affect MTAR’s business, financial condition, result of operations and cash flows.

  • The COVID-19 pandemic and resulting deterioration of general economic conditions has impacted the company’s business and results of operations in the past and the extent to which it will impact future business and results of operations will depend on future developments, which are difficult to predict.

How to apply IPO on 5paisa app?

  • Login to your 5paisa Mobile Trading App and select the MTAR Technologies IPO in the current IPO section
  • Enter the number of lots and price at which you wish to apply for
  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
  • You will receive a notification to block funds in your UPI app
  • Approve the block request

MTAR Technologies Ltd IPO Frequently Asked Questions

MTAR Technologies Ltd, leading precision engineering solutions company is coming up with its Initial Public Offering on Wednesday, March 03 with the public issue comprising a fresh issue size of up to ₹123.52 crore.

You can apply for the MTAR Technologies IPO using any supported UPI apps. To Apply on 5paisa App follow the procedure mentioned above. For further details Click Here.

MTAR Technologies IPO will open on March 03, 2021.

The Issue Size of MTAR Technologies IPO is 10,372,419 Equity Shares of face value ₹10 aggregating ₹596.41 Cr.

MTAR Technologies IPO Lot size is 26 equity shares, that means you can apply for one lot consisting 26 equity shares.

Shares of MTAR Technologies will be getting allotted on 10th March, 2021.

MTAR Technologies Shares will be getting listed on 16th March, 2021.

Here is the minimum investment calculation of MTAR Technologies IPO
Lot size – 26 * Issue Price ₹575 = ₹14,950 Hence the minimum investment amount required to invest in MTAR Technologies IPO is ₹14,950. As per the maximum limit that is allowed by SEBI you can apply for 13 lots.

No, one bank account one IPO application is allowed.

Cut off Price for MTAR Technologies IPO is ₹14,950.

Read more IPO FAQs

Contact Details of MTAR Technologies Ltd IPO

Company Contact Information

MTAR Technologies Ltd IPO
18 Technocrats Indutrial Estat,
Balanagar,
Hyderabad, Telangana 500037.

Phone: 91-40-44553333
Email: shubham.bagadia@mtar.in
Website: https://mtar.in/

MTAR Technologies Ltd IPO Register

KFin Techologies Pvt Ltd

MTAR Technologies Ltd IPO Lead Manager(s)

  • IIFL Securities Ltd
  • JM Financial Ltd

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