Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  MTAR Tech to file for 650 crore IPO
BackBack

MTAR Tech to file for ₹650 crore IPO

The company develops and manufactures components and equipment for the defence, aerospace and nuclear energy sectors.

Investment banking arms of JM Financial and IIFL are advising MTAR on the IPOPremium
Investment banking arms of JM Financial and IIFL are advising MTAR on the IPO

MTAR Technologies, a Hyderabad-based precision engineering company, is planning to file its draft initial public offering (IPO) papers soon, said two people aware of the development.

The company, backed by Mathew Cyriac, the former India private equity co-head of Blackstone, develops and manufactures components and equipment for the defence, aerospace and nuclear energy sectors. MTAR was incorporated in 1970.

Also read: Why your health plan premium is suddenly spiking

“They will file the draft red herring prospectus in the coming week. The plan is to raise around 600-650 crore through the IPO, through a mix of fresh issue of shares and an offer for sale by Cyriac’s investment firm. He holds a 33% stake which he had acquired from his previous employer Blackstone for 250 crore," said one of the people cited above, requesting anonymity as he is not authorized to speak with the media.

Cyriac had left Blackstone in 2017 to start his own investment firm after spending over a decade at the American private equity giant.

Investment banking arms of JM Financial and IIFL are advising MTAR on the IPO, said the second person.

“The company has a robust order book of over 300 crore and they are expecting another 200 crore of orders in Q4. They are also in the process of setting up an additional facility at Adibatla (Telangana) which is expected to become operational soon," he said.

MTAR currently operates out of seven manufacturing facilities including, an export oriented unit.

“MTAR works with clients such as Indian Space Research Organization, Defence Research and Development Organization, Nuclear Power Corporation of India Ltd and US-based Bloom Energy Corp., besides catering to other well-known establishments like Bharat Dynamics, Hindustan Aeronautics, BrahMos and Rafael," said the first person.

Emails sent to MTAR Technologies, JM Financial and IIFL did not elicit a response.

The company has seen strong order flows since the lockdown restrictions were eased and this has resulted in rating upgrades. Rating agency ICRA Ltd has upgraded MTAR technologies twice, taking its rating from BBB- to BBB+ as on 8 December. In fiscal 2020, the company reported a revenue of 214.2 crore and a profit of 31.3 crore, while in the previous fiscal it had reported a revenue of 184.1 crore and a profit of 39.2 crore.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Swaraj Singh Dhanjal
" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 14 Dec 2020, 07:15 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie