IPO Alert: Laxmi Organic receives SEBI approval; MTAR Tech raises Rs 100 crore via a pre-IPO placement

Hyderabad-based MTAR Tech and Kolhapur-based Laxmi Organic have received market regulator SEBI’s approval to float their IPO. Both companies are expected to hit the capital market in early March 2021.

Precision engineering solutions company, MTAR Tech is looking to raise approximately Rs 650 crore from this move. Former India private equity co-head of Blackstone, Mathew Cyriac backs the company. The company, which was incorporated in 1970, is involved in defence, aerospace and nuclear energy sectors.

The company has 35 customers, as on September 30, 2020. The total income and restated profit of the company for the period / year have increased from Rs 1,605.45 million and Rs 54.23 million in fiscal 2018, to Rs 2,181.42 million and Rs 313.18 million in fiscal 2020, at a CAGR of 16.56 per cent and 140.31 per cent, respectively. The company’s long standing customers are the Nuclear Power Corporation of India Limited (NPCIL), the Indian Space Research Organisation (ISRO), the Defence Research and Development Organisation (DRDO), and Bloom Energy.

It raised Rs 100 crore via a pre-IPO placement to SBI MF and Axis MF at Rs 540 per share, stated a person familiar with the matter.

Laxmi Organic, a manufacturer of acetyl intermediates and specialty intermediates, also received SEBI nod. It is looking at raising Rs 800 crore through fresh issues and offer for sale. Laxmi Organic, in its DRHP, stated that it may do a pre-IPO round of Rs 200 crore subject to discussion with its lead managers to the issue.

During the six months ended September 30, 2020, the company’s revenue from operations on a consolidated basis was Rs 8,134.06 million, including sales of products aggregating to Rs 8,060.19 million. According to the restated consolidated statement, the company reported revenue from operations at Rs 15,341.23 million, Rs 15,685.21 million and Rs 13,930.74 million for fiscal 2020, 2019 and 2018 respectively.

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