All you need to know about

MTAR Technologies Ltd IPO

Issue Details
Issue Amount : `595 Crores - `596 Crores
Total shares for sale : Upto 10,372,419 Equity Shares
Issue Period : Mar 03, 2021 - Mar 05, 2021
Face Value : �`10 per share
Price Band : `574 to `575
Lot Size : �26 shares and in multiple thereafter
Registrar : Kfin Technologies Private Limited
Source : BRLM

Offer Breakup
Category Allocation Issue size Issue size
(Shares) (` in crore)

QIB 50% 5,186,210 298

NIB 15% 1,555,863 89

Retail 35% 3,630,346 208

Total 100% 10,372,419 595

Source : BRLM. Employee portion excluded in table

IPO timeline `
Issue opens on:
Wednesday, March 03, 2021 `

03
Issue closes on:
Friday, March 05, 2021

MARCH

10 Finalization of 12 Refunds/Unblocking
MAR 2021 basis of allotment MAR 2021 ASBA fund

15 Credit of equity 16 Trading

MAR 2021 shares to DP account MAR 2021 commences

Source : BRLM, Dates are tentative

The objective of the offer

The proceeds of the Offer for Sale shall be received by the Promoter
01
Selling Shareholder.

Repayment / prepayment in full or in part, of

02
borrowings availed by the Company.

Funding working capital requirements of

03
the Company.

04 General corporate purposes.

Additionally, MTAR Technologies Ltd expects to

achieve the benefits of listing of their Equity Shares on
the Stock Exchanges and enhancement of their
Company’s brand name and creation of a public `
market for their Equity Shares in India.
Source : RHP and DRHP
About the company
They are a leading precision engineering solutions company engaged in the
manufacture of mission critical precision components with close tolerances
(5-10 microns), and in critical assemblies, to serve projects of high national
importance, through their precision machining, assembly, testing, quality control,
and specialized fabrication competencies, some of which have been indigenously
developed and manufactured (Source: CRISIL Report). They primarily serve
customers in the nuclear, space and defence, and clean energy sectors. Since
inception, they have strived to grow continually, contributing to the Indian civilian
nuclear power programme, Indian space programme, Indian defence and
aerospace sector, global defence and aerospace sector, as well as to the global
clean energy sector. Over the years, they have also developed import substitutes
such as ball screws and water lubricated bearings that are specialized and used
in the sectors they cater to (Source: CRISIL Report).

Their offerings are served in the nuclear, space and defence, and clean energy
sectors where they manufacture critical and differentiated engineered products
with a healthy mix of developmental and volume-based production, customized
to meet the specific requirements of their customers.

They are also a key supplier of mission critical components to customers within
the space and defence sectors for their programs of national importance.
Through their long-standing relationships of over three decades and four decades
with customers such as the Indian Space Research Organisation (“ISRO”) and the
Defence Research and Development Organisation (“DRDO”), they have been able
to supply specialized products to the Indian space programme and the Indian
missile programme, respectively.
Source : RHP and DRHP
Strengths

Precision engineering Wide product portfolio Modern technology at their

expertise with complex leading to long-standing state-of-the-art
product manufacturing relationships with their manufacturing facilities
capability customers

Strong and diversified Track record of growth in Experienced and

supplier base for financial performance qualified management
sourcing of raw materials team

Source : RHP and DRHP

Risks

They depend on a limited Dependence on govt agencies They do not have long-term
number of customers for like NPCIL, ISRO and DRDO supply agreements with
a significant portion which can be impacted by their customers
of revenue policy changes

They are subject to Covid-19 can impact Volatility in the supply of

strict quality standards business raw materials will affect
the business

Source : RHP and DRHP

 Important Financials Data
In the Fiscal ended 2020, and in the six months ended September 30, 2020,
their total income was ₹218.14 Cr and ₹122.61 Cr, respectively.

Their restated profit for the period / year has grown at a CAGR of 140.31%,
from ₹5.42 Cr in Fiscal 2018 to ₹3.13 Cr in Fiscal 2020 and was ₹17.22 Cr
and ₹19.21 Cr for the six months ended September 30, 2019 and for the six
months ended September 30, 2020, respectively.

In the Fiscal ended 2020, and in the six months ended September 30, 2020,
they reported EBITDA of ₹62.33 Cr and ₹36.09 Cr, respectively.

Their aggregate Order Book as on November 30, 2020 was ₹356.50 Cr,
comprising Order Book in the nuclear, space and defence, and clean energy
sectors of ₹93.88 Cr, ₹172.95 Cr and ₹8.69 Cr, respectively.

Nine Months Nine Months FY FY FY

(in ` Crore) ended ended March March March
Dec-2020 Dec-2019 2020 2019 2018

Total Assets 381.91 327.19 346.27 305.16 281.03

Total Revenue 177.27 152.18 159.60
from operations 213.77 183.67
EBITDA 53.75 44.59 62.33 55.95 32.82
Profit after Tax 28.07 22.45 31.32 39.2 5.42

Source : RHP

Particulars (in INR Crore) FY20 FY19 FY18

Revenue from Operations 213.77 183.67 159.60

Revenue Growth (%) 16.4 15.1 53.67

EBITDA 62.33 55.95 32.82

Net Profit for the period 31.32 39.2 5.42

Net Profit as % to Revenue 14.65 21.34 3.4

Basic EPS (Rs ) 11.11 13.89 1.92

RONW (%) 13.91 16.68 2.64

Source : RHP. FY 17 financials from MTAR website

The Company does not have any listed industry peers in India.
Source - RHP
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Based on this financial year’s IPO data, it can be conveniently said that the
country represents a huge appetite for Initial Public Offers (or IPOs). In the
period April 2020 to February 2021, the country’s stock exchanges (both
NSE and BSE combined) witnessed 24 IPOs and raised proceeds worth
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Date IPO Name Issue Size Retail Total Issue Price List Price Listing CMP on Current Gains
(` in crs) Subscription Subscription (in ₹) (in ₹) Gains(%) 26/2/2021 (in ₹) (%) 26-02-21

25-Feb-21 Railtel 819.24 16.78 42.39 94 109 28.19 121.35 29.10

18-Feb-21 Nureca 100 74.29 17.98 400 666.65 66.66 699.95 74.99

28-Jan-21 Stove Kraft Ltd 412.63 26.04 18.03 385 445.95 15.83 497.55 29.23

25-Jan-21 Home First Finance 1153.72 6.59 26.66 518 527.4 1.81 538.85 4.03

22-Jan-21 Indigo Paints Ltd 1170.56 6.5 54.84 1490 3118.65 109.31 2524.75 69.45

20-Jan-21 Indian Railway Finance Corp 4633 1.59 1.16 26 24.85 -4.42 24.65 (5.19)

23-Dec-20 Antony Waste Handling Cell Ltd 300.53 16.55 15.04 315 407.25 26.29 298.65 (5.19)

17-Dec-20 Mrs Bectors Food Specialities Ltd 540.54 29.33 198.02 288 501 106.79 400.65 39.11

4-Dec-20 Burger King India Ltd 796.5 68.15 156.65 60 115.35 130.67 141.55 135.92

11-Nov-20 Gland Pharma 6479.55 0.24 2.06 1500 1710 13.4 2,390.00 59.33

Source : Moneycontrol

For more details refer offer documents on sebi www.sebi.gov.in

The securities quoted are exemplary and are not recommendatory. Such representations are not indicative of future results.
Source of statistical information, charts, graphs etc – RHP, DRHP, addendum and Moneycontrol.

Investments in securities market are subject to market risks, please read all the related documents carefully before investing. SEBI Registration no.-INZ000240532, BSE-6707,
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