MTAR Technologies Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹575
Per ShareLot Size
26 Shares
Minimum Investment
₹14,950
Issue Size
₹595.377 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
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*Real-time data subject to exchange updates
MTAR Technologies Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
49.94%
Issue Type
Book Building
ISIN
INE864I01014
About the Company
MTAR Technologies Limited is 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 its precision machining, assembly, testing, quality control, and specialized fabrication competencies, some of which have been indigenously developed and manufactured. The Company primarily serves customers in the clean energy, nuclear and space and defence sectors.
Industry Overview
The domestic precision engineering industry's turnover is estimated at Rs. 4,415 billion for fiscal 2019, clocking a CAGR of 7.1% between fiscals 2016 and 2020. India's manufacturing GVA constitutes 17-18% of the total GVA; it increased from 17.4% in fiscal 2012 to 18.1% in fiscal 2020. The precision engineering industry will benefit from supportive government policies for manufacturing and engineering sectors. It will also gain from growth in the machinery and equipment industry and rise in penetration of high technology machinery for manufacturing. Precision engineering is expected to log 6-7% CAGR between fiscals 2020 and 2025 to reach Rs. 5,550-6,550 billion by fiscal 2025
Company History
MTAR Technologies Limited was incorporated as TAR Technologies Private Limited' pursuant to a certificate of incorporation dated November 11, 1999 issued by the erstwhile Registrar of Companies, Andhra Pradesh at Hyderabad, upon the conversion of 'M/s Machine Tools Aids and Reconditioning', a partnership firm, into a private limited company, in accordance with the provisions of Part IX of the Companies Act, 1956. Thereafter, pursuant to the conversion of the Company to a public limited company, the name of the Company was changed to 'MTAR Technologies Limited', and a fresh certificate of incorporation dated November 2, 2020 was issued to the Company by the RoC.
Products & Services
- Manufacture of mission critical precision components with close tolerances (5-10 microns)
Growth Strategy
- Continue to strengthen its 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 its relationships with its existing customers as well as catering to new customers
- Expand international presence including through increase in exports
- Grow its manufacturing capacity and increase market share through organic and inorganic routes.
- Continue to strive for operational efficiencies, supply chain rationalisation and effective planning
Customer Base
Nuclear Power Corporation of India Ltd Indira Gandhi Centre for Atomic Research ISRO DRDO Bloom Energy Israeli Defense Technology Company
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial Public Offering of 10,372,419 equity shares of face value of Rs. 10 each ("equity shares") of MTAR Technologies Limited ("The Company" or The "Issuer") for cash at a price of Rs. 575 per equity share (including a premium of Rs. 565 per equity share) ("Issue Price") aggregating up to Rs. 596 crores. The Offer comprises of a fresh issue of up to 2,148,149 equity shares aggregating to Rs. 123.52 crores ("fresh issue") and an offer for sale of up to 8,224,270 equity Shares aggregating to Rs. 472.90 crores, comprising to 450,000 equity shares by P. Leelavathi, 300,000 equity shares by Parvat Srinivas Reddy, up to 149,970 equity shares by P. Kalpana Reddy, up to 300,000 equity shares by Saranya Loka Reddy, up to 200,000 equity shares by C. Usha Reddy, up to 300,000 equity Shares by G. Kavitha Reddy, up to 125,000 equity shares by D. Anitha Reddy, up to 225,000 equity shares by K. Shalini and up to 300,000 equity shares by A. Manogna (collectively the "promoter selling shareholders") and up to 5,784,300 equity shares by Fabmohur Advisors LLP and up to 90,000 equity shares By P. Simhadri Reddy (collectively the "investor selling shareholders", and together with the promoter selling shareholders, the "Selling Shareholders") (The "offer for sale", and together with the fresh issue, the "offer"). The offer will constitute 33.72% of the post-offer paid-up equity Share capital. Offer Price Rs. 575 Per Equity Share of face value of Rs. 10 each. The Issue Price is 57.50 times of the face value.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Precision engineering expertise with complex product manufacturing capability
- Wide product portfolio leading to long-standing relationships with its customers
- Modern technology at its state-of-the-art manufacturing facilities
- Strong and diversified supplier base for sourcing of raw materials
- Track record of growth in financial performance
- The Company depends on Bloom Energy Inc. ("Bloom Energy") and a limited number of other customers for a significant portion of its revenue. The loss of one or more of its top three customers or a significant reduction in demand for its products from such top three customers, its failure to succeed in tendering for projects for them in the future despite its previous track record, or a decline in their business performance may adversely affect its business, financial condition, result of operations and cash flows.
- The Company depends significantly on orders from the NPCIL, ISRO and DRDO. A decline or reprioritisation of funding in the Indian budget towards the respective departments of the Government of India under which these customers operate, or delays in the budget process could adversely affect its ability to grow or maintain its sales, earnings, and cash flow. Further, the liberalisation of the defence or space sectors to allow the entry of private and foreign companies may increase the level of competition it faces, and there is no assurance that it will be able to compete effectively.
- The Company primarily rely on purchase orders to govern the volume and other terms of the sales of its products. It does not have long-term supply agreements with its customers. If its customers choose not to source their requirements from it or manufacture such products in-house, its business and results of operations may be adversely affected.
- The Company is subject to strict quality standards. Any failure to comply with such quality standards may lead to cancellation of existing and future orders which may adversely affect its reputation, financial conditions, cash flows and results of operations.
- The number of orders the company has received in the past and its current Order Book may not be indicative of its future growth rate or the number of orders we will receive in the future.