Hyderabad based MTAR a key partner of ISRO draft prospectus for IPO, aims to raise Rs 600-650 crore

MTAR is a key partner to Indian Space Research Organization, Defense Research and Development Organization, Nuclear Power Corporation of India and US-based Bloom Energy Inc.

Hyderabad-based precision engineering solutions company MTAR Technologies has filed draft red herring prospectus with the capital market regulator SEBI for its initial public offering.

The IPO consists of a fresh issuance of 40 lakh shares and an offer for sale of 82,24,270 equity shares by promoter and existing shareholders. MTAR is likely to raise approximately Rs 600-650 crore through its IPO, according to market sources.

MTAR currently operates out of 7 manufacturing facilities, including an export-oriented unit located in Hyderabad, Telangana, and has been servicing the defense, aerospace and energy sectors for more than 4 decades.

MTAR has precision engineering capabilities to build nuclear and pressurized water reactors, aerospace engines, missile systems, aircraft components and many such other critical components and assemblies.

As on November 2020, their 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.

MTAR is a key partner to Indian Space Research Organization, Defense Research and Development Organization, Nuclear Power Corporation of India and US-based Bloom Energy Inc besides catering to some other well-known establishments like Bharat Dynamics, Hindustan Aeronautics.

Within the space sector, the company has supplied liquid propulsion engines to PSLV – C25, PSLV-C49, GSLV Mark VII for the Mars Orbiter Mission Spacecraft, Mangalyaan; Chandrayaan Mission and the recently-launched Earth Observation Satellite EOS-01.

As on November 2020, MTAR has an order book of Rs 356.50 crore. In the financial year FY18-FY20, its total income registered growth at a CAGR of 16.56 percent and EBITDA increased at a CAGR of 37.80 percent.