MTAR Technologies makes a maiden offer worth Rs 597 crores that will open for subscription on March 3, 2021. MTAR Technologies is a precision engineering company, maker of critical components used in space, defence, and aerospace using precision machining. The company fixed IPO share prices in the price band of Rs 574-575 apiece.
The offer will open for the general investors during the first week of March. For interested investors, MTAR Technologies IPO launch date is March 3, which will remain open for two days until March 5, 2021. The total offer size comprises fresh issues of 21.48 lakh for Rs 124 crores, and offer for sale shares from promoters equals 82.24 lakh, aggregating upto Rs 473 crores.
MTAR has offloaded 18.5 lakh equity shares to Axis Mutual Fund and SBI Mutual Fund through a pre-placement of IPO shares at Rs 540 apiece.
Interested investors must know the important IPO dates related to the offer to their investment. The subscription window will remain open only for two days between March 3-5, 2021. The finalisation of the allotment date is March 10, 2021.
The issue registrar KFin Technologies will begin the refund initiative on March 12, before the IPO shares get credited to the investor’s account on March 15, 2021.
MTAR Technologies IPO shares will list in NSE and BSE on March 16, 2021.
The company proposes to utilise the fund from fresh issue sales to repay borrowings, meet the working capital requirement, and general corporate expenses.
Before subscribing to an IPO, it is important to analyse the fundamental and financial strength of the business. We suggest that you carry out thorough research on the prospect of the IPO and company performance in the long run to decide its merit.
In comparison to its peers, the strength of MTAR Technologies lies in a well-diverse product portfolio, strong order-book, competitive edge, and superior profitability. The company secured a profit net margin of 14 percent profit in FY19-20. In the last three years, MTAR has grown at a CAGR of 16.5 percent and exhibited strong financials compared to its peers.
MTRA’s key strength lies in its diverse product portfolio and engineering capabilities through which it renders critical precision manufactured assemblies and components to highly-valued sectors of nuclear energy, space, and defence. The company enjoys 28.5 percent operating margin and 14 percent net margin in the last FY. However, revenue dependency on few sectors may remain a concern for investors.
The IPO market has shown strong performance and is expected to remain buoyant. MTAR Technologies IPO is the ninth IPO so far in 2021. Considering strong market forces and the fundamentals of MTRA, there are enough reasons to believe that the offer will attract the attention of investors.
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