Speciality engineering firm MTAR Technologies to launch IPO on 3 March
MUMBAI :MTAR Technologies, Hyderabad-based precision engineering solutions company, has fixed a price band of ₹574-575 per share for its initial public offer (IPO), which will open for subscription on 3 March, a person familiar with the development said Wednesday. The company aims to raise up to ₹600 from the three-day initial share-sale, which closes on 5 March.The company, backed by Mathew Cyriac, the former India private equity co-head of Blackstone, develops and manufactures components and equipment for the defence, aerospace and nuclear energy sectors.Also Read Bitter home truths for migrant workersThe public issue of 10.37 million shares comprises a fresh issue of up to 2.15 million shares by the company and an offer for sale of up to 8.22 million equity shares by promoters and an investor.The company has raised Rs100 crore in a pre IPO fundraising from SBI Mutual Fund and Axis Mutual Fund, the person cited above said.MTAR will use the proceeds of the IPO to repay its debt worth ₹63 crore in the financial year 2021-22, while ₹95 crore will be utilized to funding working capital requirements in the next two years, showed the draft prospectus filed with the capital market regulator.As of December 2020, total debt of the company stood at ₹148.86 croreFor the nine month ended December 2020, the company reported a revenue of ₹177.27 crore against ₹152.18 crore a year ago. Net profit for the period stood at ₹28.06 crore versus ₹22.45 crore last year in the same period.As of December 2020, the total order book stood at ₹336.19 crore, comprising order book in the clean energy sector, the nuclear sector and the space and defence sectors of Rs80.12 crore, Rs93.18 crore and ₹1,60.61 crore , respectively.MTAR is a key supplier of mission critical assemblies and components to customers within the space and defence sectors for their programs of national importance. It’s customers includes Indian Space Research Organization, Defense Research and Development Organization, Nuclear Power Corporation of India Limited and the US-based Bloom Energy besides catering to several large Indian entities such as Bharat Dynamics and Hindustan Aeronautics in aerospace and defence.A spokesperson for the company could not be immediately reached for comment.