MTAR Technologies IPO – Review, Allotment, Subscription, GMP & DRHP

Let’s have a detailed review of the company and analytics of the MTAR Technologies IPO release date, IPO offer price, subscription, MTAR Technologies Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

MTAR Technologies IPO is listed at [●] premium. Check out the live share price by clicking on the below link.

MTAR Technologies IPO – Summary

They are 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 their precision machining, assembly, testing, quality control, and specialized fabrication competencies, some of which have been indigenously developed and manufactured.

They currently operate through seven manufacturing facilities, including an export-oriented unit (“EOU”).

These manufacturing facilities, each of which is situated in Hyderabad, Telangana, employ advanced equipment to undertake precision machining, assembly, testing and quality control, specialized fabrication, brazing and heat treatment, and other specialized processes, leading to them being a one-stop solutions company for their customers.

The Promoters of this company are PARVAT SRINIVAS REDDY, P. LEELAVATHI, K. SHALINI, D. ANITHA REDDY, C. USHA REDDY, G. KAVITHA REDDY, ANUSHMAN REDDY, P. KALPANA REDDY, SARANYA LOKA REDDY, A. MANOGNA AND M. MADHAVI. The lead managers to the issue are JM Financial Limited, IIFL Securities Limited, and the Registrar to this issue is KFin Technologies Private Limited.

MTAR Technologies IPO Date

The opening and the closing date of IPO of MTAR Technologies Limited is March 3, 2021 and March 5, 2021.

MTAR Technologies Limited IPO Subscription

The shares subscribed by the public will be updated here.

MTAR Technologies Limited IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.

MTAR Technologies Limited IPO Listing Date

Find the dates below on basis of allotment, refund, listing and more:

MTAR Technologies IPO Price Band / Cash Price

The face value of each share is Rs.10, but the price band of the IPO is Rs.574-575

MTAR Technologies IPO Equity Size

This Initial Public Issue of 10,372,419 Equity Shares of Rs.10 each for cash at a price of Rs.574-575 per equity share aggregating to Rs.5964.1 million.

MTAR Technologies IPO Share Offering

Fresh Issue: The Fresh Issue of 2,148,149 Equity Shares by their Company, aggregating to Rs. 1235.2 million,

Issue Size: 10,372,419 Equity Shares of Rs.10 each, aggregating to Rs.5964.1 million

Offer for Sale: Offer for sale consists of Up to 8,224,270 Equity Shares of face value of Rs.10 each, aggregating Rs.4729.0 million.

MTAR Technologies IPO – Live Performance

The listing date of this IPO is Mar 16, 2021. You can check the live performance of the IPO here, only after it is listed on exchanges.

MTAR Technologies IPO Grey Market Premium

The MTAR Technologies Limited IPO Grey Market Premium price is Rs 400-410, the Kostak rate is Rs 500 and the Subject to Sauda is 8000. 

MTAR Technologies IPO – Company Overview

They primarily serve customers in the nuclear, space and defence, and clean energy sectors. Since inception, they have strived to grow continually, contributing to the Indian civilian nuclear power programme, Indian space programme, Indian defence and aerospace sector, global defence and aerospace sector, as well as to the global clean energy sector. Over the years, they have also developed import substitutes such as ball screws and water lubricated bearings that are specialized and used in the sectors they cater to.

They believe the engineering capability of their Company, evolved over decades, has enabled them to consistently offer quality complex precision manufactured components and assemblies, within stipulated timelines and at reasonable cost in most cases, allowing them to forge a robust relationship with their customers.

MTAR Technologies IPO Business Verticals

They are also a key supplier of mission critical components to customers within the space and defence sectors for their programs of national importance.

Through their long-standing relationships of over three decades and four decades with customers such as the Indian Space Research Organisation (“ISRO”) and the Defence Research and Development Organisation (“DRDO”), they have been able to supply specialized products to the Indian space programme and the Indian missile programme, respectively.

In addition, they also focus on clean energy as one of their key customer sectors and are accordingly, involved in the manufacture of power units, specifically hot boxes, and in the development and manufacture of hydrogen boxes and electrolyzers, to serve Bloom Energy Inc., United States (“Bloom Energy”) with which, they have been associated with, for over nine years.

MTAR Technologies IPO – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Financial Summary:

Earnings per Equity Share (in Millions)

In the Fiscal ended 2020, and in the six months ended September 30, 2020, their total income was Rs.2,181.42 million and Rs.1,226.08 million, respectively.

Their restated profit for the period / year has grown at a CAGR of 140.31%, from Rs.54.23 million in Fiscal 2018 to Rs.313.18 million in Fiscal 2020 and was Rs.172.22 million and Rs.192.13 million for the six months ended September 30, 2019 and for the six months ended September 30, 2020, respectively.

The reported EBITDA was of Rs.623.34 million and Rs.360.89 million, respectively.

MTAR Technologies Limited IPO – Promoters

The Promoters of this company are:

1. PARVAT SRINIVAS REDDY,
2. P. LEELAVATHI,
3. K. SHALINI,
4. D. ANITHA REDDY,
5. C. USHA REDDY,
6. G. KAVITHA REDDY,
7. ANUSHMAN REDDY,
8. P. KALPANA REDDY,
9. SARANYA LOKA REDDY,
10. A. MANOGNA AND
11. M. MADHAVI

List of Related Parties (Key Managerial Personnel)

• Devesh Dhar Dwivedi, Chief Operating Officer
• Sudipto Bhattacharya, Chief Financial Officer
• Shubham Sunil Bagadia, Company Secretary and Compliance Officer

Competitive Strengths of MTAR Technologies Limited

• Precision engineering expertise with complex product manufacturing capability
• Wide product portfolio leading to long-standing relationships with their customers
• Modern technology at their state-of-the-art manufacturing facilities
• Strong and diversified supplier base for sourcing of raw materials
• Track record of growth in financial performance
• Experienced and qualified management team

MTAR Technologies Limited IPO Offer Details or Issue Details

Check out Related IPO Links:

MTAR Technologies IPO Issue Object

Their Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

1. Repayment / prepayment in full or in part, of borrowings availed by their Company
2. Funding working capital requirements; and
3. General corporate purposes.

Business strategies of MTAR Technologies Limited

• Continue to strengthen their existing product portfolio and diversify into products with attractive growth and profitability prospects
• Capitalize on upward trend of nuclear sector in India, increasing indigenization and policy initiatives in the defence sector, and commercialization of Indian space sector
• Focus on deepening and strengthening their relationships with their existing customers as well as catering to new customers
• Expand international presence including through increase in exports
• Grow their manufacturing capacity and increase market share through organic and inorganic routes
• Continue to strive for operational efficiencies, supply chain rationalisation and effective planning

MTAR Technologies IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

• Precision engineering expertise with complex product manufacturing capability
• Wide product portfolio leading to long-standing relationships with their customers
• Modern technology at their state-of-the-art manufacturing facilities
• Strong and diversified supplier base for sourcing of raw materials
• Track record of growth in financial performance
• Experienced and qualified management team

The relevant quantitative factors are:

MTAR Technologies IPO : Competitive Peers

They believe that none of the listed companies in India are engaged in a portfolio of business similar to ours.

MTAR Technologies IPO Lead Managers

MTAR Technologies IPO Registrar to offer

MTAR Technologies IPO – Other Details

• Statutory Auditor – M/s S. R. Batliboi & Associates LLP, Chartered Accountants
• Legal Counsel to the Company – Khaitan & Co
• Bankers to the Company –  State Bank of India

MTAR Technologies IPO Review by Top Stock Brokers

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MTAR Technologies Limited IPO News

News 1 – MTAR Technologies Limited IPO RHP Download

MTAR Technologies IPO Review FAQs

Ques – What is the Issue Size of MTAR Technologies IPO?

Answer – The Company is making an initial public offer of 10,372,419 equity shares. We vividly portray the aspects of the issue in this article. You can check the stats on fresh issue, Offer for sale, and the net issue.

Ques – What is the Price band?

Answer – The price band for this particular IPO ranges between Rs 574-575. As far as the face value of the share is of concern, it is Rs.10 per share.

Ques – What is the MTAR Technologies IPO Open Date?

Answer – The opening and closing date for the IPO have been updated. The IPO is set to open on March 3, 2021, while the closing date is set at March 5, 2021.

Ques – What is the IPO Allotment Date?

Answer – We also have the news regarding the respective allotment dates. Basis of Allotment finalization is on NA, refund initiation is on NA, credit of shares is on NA and share listing date is on Mar 10, 2021.

Ques – What is the IPO Listing Date?

Answer – Shares of this company shall be listed in the exchanges BSE as well as NSE. Date when the listing would be done is stagnant on Mar 16, 2021.

Ques – Who is the Registrar of this IPO?

Answer – One of the reputed registrars are managing the issue of this IPO, i.e. KFin Technologies Private Limited. Their website will help you regarding the further information you are on a lookout for.

Ques – Who is the Promoter of this Company?

Answer – Here are the promoters of this company – PARVAT SRINIVAS REDDY, P. LEELAVATHI, K. SHALINI, D. ANITHA REDDY, C. USHA REDDY, G. KAVITHA REDDY, ANUSHMAN REDDY, P. KALPANA REDDY, SARANYA LOKA REDDY, A. MANOGNA AND M. MADHAVI. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.

Ques – What is GMP of MTAR Technologies IPO?

Answer – We have obtained the GMP of this IPO and it is 400-410. The further insights of Kostak rate and subject to sauda or SS are as well included in this report.

Ques – Is MTAR Technologies IPO good for Investment?

Answer – We have further provided the financial status of the company in this article, from the past few years. You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.

Ques – What is the PAT of this Company?

Answer – We have the information of company financials, and according to that, we have the figures from the last few years to provide. PAT for the financial year 2020 in millions is 313.18, 2019 is 391.99, 2018 is 54.23. PAT from Dec 2020 is 280.69.

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