Hyderabad-based MTAR Technologies has filed papers with markets regulator Sebi to raise about Rs 600-650 crore through an initial public offering (IPO).
The IPO comprises a fresh issuance of up to 40 lakh shares and an offer for sale of up to 82,24,270 shares by promoter and existing shareholders aggregating up to 12,224,270 equity shares of face value of Rs 10 each.
The net proceeds are proposed to be used to repay in part or full Rs 55 crore of Rs 62.16 crore of the fund based borrowings as on November 30, 2020, fund Rs 95 crore of long term working capital requirements besides attending to general corporate purpose.
MTAR Technologies is a leading precision engineering solutions 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.
Currently, the company operates out of 7 manufacturing facilities including an export oriented unit located in Hyderabad. MTAR 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.
As on November 30, 2020, company's 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.
The aggregate order book of the company stood at Rs 356.50 crore as on November 30, 2020. Between FY18-20, the company’s total income and EBITA have grown at a CAGR of 16.56 percent and 37.80 percent respectively.
As on the 6 months ended September 30, 2020, the revenue from domestic customers accounted for 47.29 percent and exports stood at 52.71 percent of its total revenues. It is in the process of establishing a sheet metal facility in Adibatla and also plans to construct and additional shed for specialised fabrication work for domestic and international customers.
JM Financial and IIFL Securities ae the book running lead managers to the issue.
(Edited by : Jomy)
First Published: IST