MTAR Technologies sets price band of Rs 574-575 per share

MTAR Technologies has set a price band of Rs. 574–Rs. 575 per equity share for its initial public offering of equity shares.

The IPO of the Hyderabad-based precision engineering solutions company, engaged in the manufacture and development of mission critical precision components and critical assemblies catering to clean energy, nuclear and space and defence sectors, will open on March 3.

The company and the selling shareholders may, in consultation with the book-running lead managers, undertake a Pre-IPO Placement of 1,851,851 equity shares, aggregating to Rs. 100 crore, with the Axis and SBI mutual funds.

The IPO is a fresh issuance of up to 21,48,149 equity shares of Rs 10 face value, aggregating up to Rs 124 crore and an offer-for-sale of up to 8,224,270 equity shares aggregating to Rs 473 crore, of face value of Rs 10 each, by Selling Shareholders.

The company proposes to utilise the net proceeds from the fresh issue towards repayments of borrowings by the company, funding working capital requirements and for general corporate purposes.

MTAR key portfolio comprises the clean energy sector, 14 kinds of products in the nuclear sector and six kinds of products in the space and defence sectors. IT’s customers include Nuclear Power Corporation of India Ltd, Indian Space Research Organisation, the Defence Research and Development Organisation and Bloom Energy (USA).

The offer puts the valuation at Rs 1,600 crore. It is being made through the Book Building Process.

Parvat Srinivas Reddy, Promoter and Managing Director, MTAR Technologies, said, “the company has seven manufacturing units, including an export-oriented unit in Hyderabad. It is in the process of establishing an additional manufacturing facility at Adibatla in Hyderabad, which is expected to become operational in fiscal 2022.”

MTAR’s contribution was integral to the Chandrayaan 2 and Mangalyaan missions. JM Financial and IIFL Securities have been appointed as BRLMs to the issue.