MTAR Technologies, a Hyderabad-based precision engineering company has filed papers with markets regulator Sebi to raise about Rs 600-650 crore through an initial public offering (IPO).
The net proceeds from the fresh issue will be used to repay the debt and fund long-term working capital requirements besides attending to general corporate purpose.
The IPO comprises a fresh issuance of up to 40 lakh shares and an offer for sale of up to 82,24,270 shares by promoter and existing shareholders aggregating up to 12,224,270 equity shares of face value of Rs 10 each.
JM Financial and IIFL Securities are the book running lead managers to the issue.
MTAR Technologies is a leading precision engineering solutions company engaged in the manufacturing and development of mission critical precision components with close tolerances and critical assemblies catering to nuclear, space, defense and clean energy sectors.
Currently, the company operates out of 7 manufacturing facilities including an export oriented unit located in Hyderabad.
As on November 30, 2020, company's 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.
The aggregate order book of the company stood at Rs 356.50 crore as on November 30, 2020. Between FY18-20, the company’s total income and EBITA have grown at a CAGR of 16.56 percent and 37.80 percent respectively.