Mumbai, Dec 20 (FN Bureau) MTAR Technologies, a leading precision engineering solutions company, has filed its DRHP to raise approximately 600-650 crore, according to market sources. According to the DRHP filed, the IPO is a Fresh Issuance of up to 40,00,000 shares and an Offer for Sale of up to 82,24,270 shares from Promoter and Investor Selling Shareholders aggregating up to 12,224,270 equity shares of Face Value of Rs 10 each.
Research and Development focused company started operations in 1970 as a partnership and was incorporated in 1999. MTAR currently operates out of 7 manufacturing facilities including an export oriented unit located in Hyderabad, Telangana and has been servicing the defense, aerospace and energy sectors for more than 4 decades. MTAR has precision engineering capabilities to build nuclear and pressurized water reactors, aerospace engines, missile systems, aircraft components and many such other critical components and assemblies. As on November 30, 2020, their product portfolio includes 14 kinds of products in the nuclear sector, 6 kinds of products in the space and defense sectors, and 3 kinds of products in the clean energy sector and has a healthy mix of developmental and volume based production. It is a key partner to Indian Space Research Organization, Defense Research and Development Organization, Nuclear Power Corporation of India Limited and US Based, Bloom Energy Inc besides catering to some other well-known establishments like Bharat Dynamics, Hindustan Aeronautics. Within the space sector, the company has supplied liquid propulsion engines to PSLV – C25, PSLV-C49, GSLV Mark VII for the Mars Orbiter Mission Spacecraft, Mangalyaan; Chandrayaan Mission and the recently launched Earth Observation Satellite EOS-01.
The net proceeds from the fresh issue will be used to repay in part or full Rs 55 crore of Rs. 62.16 crore of the fund based borrowings as on November 30, 2020, fund Rs 95 crore of long term working capital requirements besides attending to general corporate purpose. JM Financial and IIFL Securities are appointed as the BRLMs to the Issue.