MTAR-IPO-Subcribe-Elite

MTAR Technologies develops and manufactures a wide range of mission critical assemblies and precision components with close tolerances (5-10 microns), through its precision machining, assembly, and specialized fabrication facilities, for onward usage by customers in the clean energy, nuclear, and space and defence sectors in India, and abroad. In clean energy segment MTAR involved in the manufacture of power units, specifically hot boxes, and in the development and manufacture of hydrogen boxes and electrolyzers, to serve Bloom Energy Inc., United States.

MTAR Technologies Ltd. IPO

Wants To Apply Online

                                                               Issue Details
Objects of the issue ·          To partly or fully repay company’s borrowings..

·          To finance company’s working capital requirements.

·          To meet general corporate purposes.

Issue Size Total issue Size -Rs. 596 Cr.

Fresh Issue – Rs 123  Cr.

Offer for Sale –  Rs. 473 Cr.

Face value  

Rs.10 Per Equity Share

Issue Price Rs. 574 – Rs. 575
Bid Lot 26 shares
Listing at  

BSE, NSE

Issue Opens: 3rd March, 2021 – 5th  March, 2021
QIB 50% of Net Issue Offer
Retail 35% of Net Issue Offer
NIB 15% of Net Issue Offer

 

Financial Performance:

Mtar- performance -Elite

Shareholding Pattern:

Shareholding Pattern Pre- Issue Post Issue
Promoters & Promoters Group 62.24% 50.25%
Public 37.76% 49.75%
Source: RHP, EWL Research, Bloomberg Quint

Check MTAR Technologies Ltd. IPO Allotment Status

MTAR Technologies Ltd. IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.

One can check the allotment on the given below link with PAN number or Application number or DP Client Id. All you need to do is to follow these steps:-

  1. To MTAR Technologies Ltd. IPO Allotment Status
  2. Go to Application Status
  3. Select IPO as MTAR Technologies Ltd.
  4. Enter your PAN Number or Application Id or DP Client Id.

 

MTAR Technologies Ltd. IPO

Application Form

 

Strengths:

  • Precision engineering expertise with complex product manufacturing capability

  • Wide product portfolio with long-standing relationships with customers

  • Modern technology at state-of-the-art manufacturing facilities

  • Strong and diversified supplier base for sourcing of raw materials

Key Highlights:

  • Revenue from operations has grown at a CAGR 16% during FY18 to FY20

  • 3 % of Revenue of MTAR comes from Clean Energy Sector

  • EBITDA margin stands at 30.2% in 9MFY21 and 28.5% in FY20

  • The aggregate Order Book as on December 31, 2020 was Rs. 336.19 crore, comprising Order Book in the clean energy sector of Rs. 80.19 crore, the nuclear sector of Rs. 93.19 crore and the space and defence sectors of Rs. 160.61 crore respectively.

  • 82% of Revenues of MTAR Technologies comes from Exports.

Risk Factors:

  • Bloom Energy is its largest customer of the company accounted for 49% of the company’s revenue in clean energy segment further in nuclear segment, Nuclear Power Corp. accounts for 27% of the overall revenue.

  • Reliance on a limited number of customers generally involve several risks.

  • The Company is subject to strict quality standards. Any failure to comply with such quality standards may lead to cancellation of existing and future orders.

Outlook:

MTAR Technologies primarily serve customers in the nuclear, space and defence, and clean energy sectors. In the space and defence segment, clients such as the Indian Space Research Organisation and Defence Research and Development Organisation account for 21% of the top line. MTAR has long-standing relationships with the Indian Space Research Organisation (“ISRO”) and the Defence Research and Development Organisation (“DRDO).  The company co-develops critical sub-systems like Liquid propulsion Rocket Engines, Cryogenic Engines and other parts for space programs like Chandrayan-II, Mangalyaan and Agni missile programmes. Precision engineering industry  has grown at CAGR of 7.1% between fiscals 2016 and 2020  and projected to grow 6-7% CAGR between fiscals 2020 and 2025. As compared to industry  MTAR Technologies revenue grew at 16% CAGR Between FY18-FY20. Clean energy is one of the major growth segments for the company with fuel cells market growing at 15% CAGR.

At the higher end of the price band of Rs. 575, the stock is offered  at a PE multiple of 45.3x on FY21E annualised Post issue EPS of Rs. 12.67. We would recommend Subscribe to this IPO considering Good Financial Record and Futuristic business Model of the company.

 

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