MTAR Technologies To Sell Shares At Rs 574-575 Apiece In IPO
Scientists and employees view the Chandrayaan-2 spacecraft Lander module at the Indian Space Research Organization Satellite Integration and Test Establishment (ISITE) at the ISRO headquarters in Bengaluru, India. (Photographer: Karen Dias/Bloomberg)

MTAR Technologies To Sell Shares At Rs 574-575 Apiece In IPO

MTAR Technologies Ltd. will sell shares at Rs 574-575 apiece in its initial public offering next week.

The maker of nuclear, defence and aerospace equipment, fabrication facilities and fuel cells, will launch its Rs 560-crore maiden offer on March 3 to sell 1.03 crore shares, according to a statement. The issue will close on March 5. At the upper-end of the price band, the company will be valued at Rs 1,768 crore.

MTAR’s IPO comprises a fresh issue of 21.48 lakh shares and an offer-for-sale of 82.24 crore shares. The company recently sold 18.51 crore shares at Rs 540 apiece in a pre-IPO placement to schemes of SBI Mutual Fund and Axis Mutual Fund.

“These [pre-IPO] shares will be locked-in for a year,” P Srinivas Reddy, managing director and promoter of the company, told BloombergQuint in an interview.

MTAR has three key customers in the fuel cell, nuclear, and space and defence segments.

  • In the fuel cell segment, Bloom Energy is its largest customer that accounted for 49% of the company’s revenue in the nine months ended December 2020, according to its red herring prospectus.

  • Its key customer in the nuclear segment, Nuclear Power Corporation of India Ltd., accounts for 27% of the overall revenue.

  • In the space and defence segment, clients such as Indian Space Research Organisation and Defence Research and Development Organisation account for 21% of the top line.

The company, according to the red herring prospectus, reported revenue worth Rs 213.7 crore for the financial year ended March 2020 and Rs 177.28 crore for the nine months ended December. Its profit after tax 2019-20 stood at Rs 31.30 crore and Rs 28 crore for the April-December 2020 period.

Watch the interview with MTAR Technologies' MD P Srinivas Reddy:

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