MTAR Technologies IPO offer will hit the market on March 3, 2021. MTAR is a precision engineering company based in Hyderabad planning to float a maiden public offer containing fresh issues and OFS equity shares. Ahead of the IPO launch, let’s check out all the important details related to the offer and see if it is worth subscribing.
MTAR Technologies is a prominent player in the precision engineering segment, primarily engages in producing mission-critical components for the defence, space and aerospace sectors. The firm has seven modern units in Hyderabad and Telangana, where it undertakes precision machining and related processes for DRDO, ISRO, NPCIL, Rafael, Bloom Energy, and more. A wide and complex product range, a successful track record, and strong financials will keep MTAR ahead of its peers.
If you are interested in subscribing to MTAR Technologies IPO, here are the key things to know.
- MTAR Technologies IPO subscription window will open on March 3, 20212. The two days subscription period will end on March 5, 2021
- Company’s IPO comprises fresh issues of 21.48 lakh and 82.24 crores OFS equity shares
- Ahed of the IPO launch, the company has sold 18.51 crores of shares at Rs 540 apiece to SBI Mutual Fund and Axis Mutual Fund with a lock-in period of one year
- For general investors, MTAR Technologies IPO share price band is set at Rs 574-575. The company plans to sell 1.03 crore shares in Rs 560 crores maiden offer
- At the upper price limit, the share price is 20x premium of the FY20 earning of Rs 28.3
- Investors can apply for a minimum of 26 shares for a minimum amount of Rs 14,950
- The issuer reserved 50 percent of the offer size for QIB investors. Retail investors will receive 35 percent of the quota, and the remaining 15 percent will go to the non-institutional category
- JM Financial and IIFL Securities are the book-running lead managers and KFin Technologies Pvt. Ltd is the registrar of the offer
MTAR Technologies IPO is the 9th so far in 2021.
According to the red herring prospectus, the company earned revenue worth Rs 213.7 crores during the financial year closing in March 2020, and for the nine months till December, revenue volume was RS 177.28 crores. Profit After Tax or PTA was Rs 310.30 crores in FY 2019-20 and between April and December Rs 28 crore.
Ahead of the launch, the company shares are trading in the grey market at Rs 245 or 43 percent premium. Most brokers have advised investors to ‘subscribe’ to MTAR Technologies IPO considering its healthy order book, competitive advantage, and higher profitability.