IPO Alert: MTAR IPO open from 3-5 March 2021

March will be chock-a-block with public issues, and the first one this month is the IPO of MTAR Technologies. We tell you what the company and the issue are all about. 

Key highlights
Price band: ₹574-575 per equity share
Lot size: 26 shares
IPO size: ₹596 crore
Cost per lot: ₹14,950
Issue opens: 3 March 2021
Issue closes:  5 March 2021
Basis of allotment date: 10 March 2021
Initiation of refunds: 12 March 2021
Credit of shares to demat account: 15 March 2021
Expected listing date: 16 March 2021

About MTAR Technologies

Founded in 1970 as ‘Machine Tools Aids and Reconditioning’, MTAR is a precision engineering company that serves customers in the clean energy, nuclear and space and defence sectors. MTAR has seven manufacturing facilities in Hyderabad, Telangana.

It has been a supplier of mission-critical components to the Nuclear Power Corporation of India Limited (NPCIL), Indian Space Research Organisation (ISRO) and the Defence Research and Development Organisation (DRDO) for over three decades. Other notable clients include Hindustan Aeronautics Limited (HAL) and Bharat Dynamics. It has also supplied critical defence products to international clients such as US-based Bloom Energy and the Israeli defence technology company Rafael.

Here’s an overview of the company’s financial performance.

About the issue

The IPO has a fresh issue worth ₹123.5 crore fresh issue and an offer for sale component of about ₹473 crore, through which existing promoters will divest their stake. 

The proceeds from the fresh issue will be used to repay the company’s existing debts and to fund working capital requirements.

IPO allocation quota

To know more about the IPO, read its red herring prospectus here. The issue opens on 3 March 2021 and you can subscribe to the IPO of MTAR Industries with Upstox here. Meanwhile, we’ll keep you posted on all the updates about this IPO and the public issues that follow, so stay tuned!