MTAR Technologies Ltd. Public Offering of Equity Shares opening on March 3, 2021
- Price Band of Rs. 574 – Rs. 575 per equity share of face value of Rs. 10 each (“Equity Share”)
- Bid/Offer Opening Date – Wednesday, March 3, 2021 and Bid/Offer Closing Date – Friday, March 5, 2021
- Minimum Bid Lot is 26 Equity Shares and in multiples of 26 Equity Shares thereafter
- The Floor Price is 57.40 times the Face Value of the Equity Shares and the Cap Price is 57.50 times the Face Value of the Equity Shares.
Chennai, February 25, 2021: MTAR Technologies, a Hyderabad based precision engineering solutions company engaged in the manufacturing and development of mission critical precision components and critical assemblies catering to clean energy, nuclear and space and defense sectors, will open the Bid/Offer period in relation to its initial public offering of Equity Shares (the “Offer”/ “IPO”) on Wednesday, March 3, 2021 and close on Friday, March 5, 2021. The price band for the Offer has been decided at Rs. 574 – Rs. 575 per Equity Share. The Company and the Selling Shareholders may, in consultation with the book running lead managers (the “BRLMs”), consider participation by Anchor Investors which shall be one Working Day prior to the Bid/Offer Opening Date, i.e. Tuesday, March 2, 2021. MTAR has, in consultation with the Book Running Lead Managers, undertaken a Pre-IPO Placement of 1,851,851 Equity Shares, aggregating to Rs. 100 cr with Axis and SBI mutual funds.
The IPO is a fresh issuance of upto 21,48,149 equity shares, of Rs 10 face value, aggregating up to 124 Cr and an Offer for sale of up to 8,224,270 equity shares aggregating up to Rs 473 cr, of face value of Rs 10 each, by Selling Shareholders. The Company proposes to utilise the Net Proceeds from the Fresh Issue towards repayments of borrowings by the Company, funding working capital requirements and for general corporate purposes.
The Company’s key strength lies in its engineering capabilities which has enabled it to consistently offer quality complex precision manufactured assemblies and components to its customers in highly-valued strategic and key sectors like clean energy, nuclear, and space and defense segments. MTAR Technologies’ key portfolio comprises of three kinds of products in the clean energy sector, 14 kinds of products in the nuclear sector and six kinds of products in the space and defence sectors. Delivery of complex products with stringent quality requirements within stipulated timelines in majority of cases has earned MTAR a long-standing relationship with its customers such as Nuclear Power Corporation of India Limited (“NPCIL”), the Indian Space Research Organisation (“ISRO”), the Defence Research and Development Organisation (“DRDO”), and Bloom Energy (USA).
JM Financial and IIFL Securities are appointed as the BRLMs to the Issue.
The Offer is being made through the Book Building Process and in compliance with Regulation 6(1) of the Secu rities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations wherein not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institut ional Buyers (“QIBs”, the “QIB Portion”). Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer shall be available for alloc ation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations subject to valid Bids being received from them at or above the Offer Price.
Disclaimers
MTAR Technologies Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offering of its equity shares (the “Equity Shares”) and has filed a draft red herring prospectus dated 18 December 2020 (the “DRHP”) with the Securities and Exchange Board of India (“SEBI”) and a red herring prospectus dated 22 February 2021 (the “RHP”) with the Registrar of Companies, Telangana at Hyd erabad. The DRHP and RHP are available on the website of SEBI at www.sebi.gov.in and the website of the Lead Managers at www.jmfl.com and www.iiflsecurities.com, and the websites of BSE Limited and National Stock Exch ange of India Limited at www.bseindia.com and www.nseindia.com, respectively. Any potential investor should note that investment in Equity Shares involves a high degree of risk. For details, potential investors should refer to the RHP, including the section titled “Risk Factors”.
DISCLAIMER CLAUSE OF SEBI: SEBI only gives its observations on the draft offer documents and this does not constitute approval of either the Offer or the specified securities stated in the Offer Document. The investors are advised to refer to pages 445 of the RHP for the full text of the Disclaimer Clause of SEBI.
DISCLAIMER CLAUSE OF NSE (The Designated Stock Exchange): It is to be distinctly understood that the aforesaid permission given by NSE should not in any way be deemed or construed that the offer document has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this offer document; nor does it warrant that this Issuer’s securities will be listed or will continue to be listed on the Exchange; nor does it take any responsibility for the financial or other soundness of this Issuer, its promoters, its management or any scheme or project of this Issuer. The investors are advised to refer to the Offer Document for the full text of the ‘Disclaimer clause’ of the NSE on page 447 of the RHP.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHP has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the RHP. The investor is advised to refer to the page 447 of the RHP for the full text of the Disclaimer clause of the BSE.
MTAR Technologies Ltd.
MTAR has seven manufacturing units including an export-oriented unit with state-of-the-art facilities each based in Hyderabad, Telangana. The company is in the process of establishing an additional manufacturing facility at Adibatla in Hyderabad which is expected to become operational in Fiscal 2022. The company has consistently undertaken expansion of its manufacturing facilities through internal accruals, in the past with a view to capture increasing demand in the future. Over the years, MTAR has made investments in its processes, infrastructure and systems to develop sophisticated and modern manufacturing technology and become a leading player in the nuclear and space and defence sectors. It has also designed and built, with inhouse expertise, certain sophisticated special purpose machines instead of importing comparable machines.
The Company has a long-standing relationship of over three and four decades with customers such as the Indian Space Research Organisation (ISRO) and the Defence Research and Development Organisation (DRDO) and has supplied a variety of mission critical products to them. MTAR’s contribution was integral to Chandrayaan 2 and Mangalyaan missions by supplying products such as liquid propulsion engines, cryogenic engines including turbo pumps, booster pumps, gas generators and injector heads for such engines and electro-pneumatic modules etc. to launch vehicles. For the Defence sector, MTAR undertook complex assemblies for the DRDO, including asse mbly for Agni missiles, and the assembly of secondary injection thrust vector control (“SITVC”) valves and hydr aulic fin tip control (“HFTC”) valves. MTAR has also consistently supplied products like hot boxes, hydrogen boxes and electrolyzers to Bloom Energy, a USA based Company and has also supplied critical defence products to an Israeli defence technology company.
The Company is led by Mr. Parvat Srinivas Reddy, Promoter and Managing Director, MTAR Technologies Ltd. who has over twenty-nine years of work experience.
