Hyderabad based MTAR launches IPO: Should you buy?

The Rs 596 crore IPO by precision engineering company MTAR Technologies hit the market on Wednesday. The Hyderabad-based company manufactures critical and differentiated engineered products for the nuclear, space and defence, and clean energy segments, and owns seven manufacturing facilities in Hyderabad, including an export-oriented unit. Its IPO consists of a fresh issue of shares worth Rs 124 crore and an offer for sale (OFS) worth Rs 473 crore of shares. Shares are being sold in the price band of Rs 574-575 under the public offer. At this price band, the issue is demanding a P/E multiple of 47.3 times its FY21 EPS of Rs 12.20 on an annualised basis. On Tuesday, the company raised Rs 178.92 crore from 15 anchor investors at Rs 575 per share, including Nomura Funds Ireland, Jupiter South Asia Investment, White Oak Capital and Goldman Sachs India.