MTAR Technologies Plans to file for Rs. 650 crore IPO

MTAR Technologies, a Hyderabad-based precision engineering company has announced that it is planning to file its draft initial public offering (IPO) papers soon. The information is accumulated from two people who are aware of the development.

Backed by Mathew Cyriac, the former India private equity Co-Head of Blackstone, MTAR Technologies develops and manufactures components and equipment for the defence, aerospace and nuclear energy sectors. The organization was incorporated in 1970. “They will file the draft red herring prospectus in the coming week. The plan is to raise around Rs. 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 percent stake which he had acquired from his previous employer Blackstone for Rs. 250 crore,” said one of the people aware of the development. Investment banking arms of JM Financial and IIFL are advising MTAR on the IPO, said the second person.

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

“The company has a robust order book of over Rs. 300 crore and they are expecting another Rs. 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,” said the second person.

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.

MTAR 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 Rs. 214.2 crore and a profit of Rs. 31.3 crore, while in the previous fiscal it had reported a revenue of Rs. 184.1 crore and a profit of Rs. 39.2 crore.