MTAR Technologies IPO to open tomorrow: 10 things to know about the share sale

Hyderabad-based MTAR Technologies will launch its initial public offering (IPO) on March 3. The share sale will be ninth public offer in the current calendar year after Indian Railway Finance Corporation, IndiGo Paints, Home First Finance Company, Stove Kraft, Brookfield India REIT, Nureca, RailTel Corporation of India and Heranba Industries.

The IPO will close on March 5. The issue is open for anchor investors today.

Here are ten things to know about the IPO that opens tomorrow.

1. The Hyderabad-based precision engineering solutions company plans to raise up to Rs 600 crore from the IPO

2. Price band for the IPO has been fixed at Rs 574-575 per share

3. The IPO comprises of a fresh issue of 21,48,149 equity shares and an offer for sale of 82,24,270 equity shares by promoters and investors.

4. JM Financial and IIFL Securities have been appointed as the book-running lead managers to the issue.

5. Equity shares of MTAR Technologies will be listed on BSE and National Stock Exchange.

6. MTAR Technologies, which is backed by Mathew Cyriac, the former India private equity co-head of Blackstone, reported a net profit of Rs 31.32 crore for the financial year ended March 31, 2020. Total revenue of the company stood at Rs 218.14 crore, while total assets were at Rs 305.16 crore in FY20.

7. The firm intends to use net proceeds from its fresh issue and pre-IPO placement to repay debt, fund long-term working capital requirements besides attending to general corporate purpose.

8. Applications in the IPO can be made in a minimum lot size of 26 shares for which Rs 14,950 would have to be spent. An investor can buy a maximum 13 lots of 338 shares amounting to Rs 1,94,350.

9. MTAR has precision engineering capabilities to build nuclear and pressurised water reactors, aerospace engines, missile systems, aircraft components, and many other critical components and assemblies.

10. Promoters of the 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, who all held 1,42,87,337 equity shares in aggregate, representing 49.94 percent of the paid-up capital of the company.