MTAR Technologies Ltd. IPO

IPO Details:

Price Band: 574-575

Cutoff Price: 575

About Company

MTAR Technologies is a leading precision engineering solutions company engaged in the manufacturing of mission critical precision components with close tolerances (5-10 microns), and in critical assemblies, to serve projects of high national importance, through the precision machining, assembly, testing, quality control, and specialized fabrication competencies,

some of which have been indigenously developed and manufactured (Source: Company Commissioned CRISIL Report). MTAR primarily serve customers in the clean energy, nuclear

and space and defence, sectors. Since inception, it has strived to grow continually, contributing to the Indian civilian nuclear power programme, Indian space programme,

Indian defence and aerospace sector, as well as to the global clean energy sector and the global defence and aerospace sector.

Competitive Strengths:

1. Precision engineering expertise with complex product manufacturing capability

2. Wide product portfolio leading to long-standing relationships with our customers

3. Modern technology at our state-of-the-art manufacturing facilities

4. Strong and diversified supplier base for sourcing of raw materials

5. Track record of growth in financial performance

6. Experienced and qualified management team

Strategies:

1. Continue to strengthen the existing product portfolio and diversify into products with attractive growth and profitability prospects

2. Capitalize on upward trend of nuclear sector in India, increasing indigenization and policy initiatives in the defence sector, and commercialization of Indian space sector

3. Focus on deepening and strengthening the relationships with the existing customers as well as catering to new customers

4. Expand international presence including through increase in exports

5. Grow their manufacturing capacity and increase market share through organic and inorganic routes

6. Continue to strive for operational efficiencies, supply chain rationalisation and effective planning

Financial Performance:

Blue Bar is Revenue, Red Bar is Net Profit

Objects of the Issue:

The Offer comprises a Fresh Issue by the Company and an Offer for Sale by the Selling Shareholders.

1. Offer for Sale : Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale, net of their respective portion of the Offer related expenses.

2. Fresh Issue : Company proposes to utilise the Net Proceeds from the Fresh Issue and the proceeds of the Pre-IPO Placement towards funding the following objects:

1. Repayment / prepayment in full or in part, of borrowings availed by our Company

2. Funding working capital requirements

3. General corporate purposes

My view: I would be applying for the IPO because of decent grey market premium. Do visit this blog and the link after 6pm to get updated details on grey market premium and subscription details.

Grey Market Premium:

Subscription Details:

Allotment Status: Link

Listing Status:

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