MTAR Technologies IPO Analysis

Incorporated in 1999, MTAR Technologies is a leading national player in the precision engineering industry. The company is primarily engaged in the manufacturing of mission-critical precision components with close tolerance and in critical assemblies through its precision machining, assembly, specialized fabrication, testing, and quality control processes.

MTAR Technologies Overview:

• A leading precision engineering solutions company
• Engaged in the manufacture of mission-critical precision components, and critical assemblies, to serve projects of high national importance.
• Primarily serves customers in the clean energy, nuclear, space and defense sectors.
• Key customers:
  1. Engaged with Bloom Energy Inc., the United States for 9 years.
  2. Serving customers in the nuclear sector for over 35 years.
  3. Established relationships with the Nuclear Power Corporation of India for over 16 years.
  4. Supplying specialized products to ISRO and DRDO for 3 and 4 decades respectively.

MTAR Technologies Competitive Strengths:

• Wide range of product portfolio.
• 7 Modern technology manufacturing units.
• Diversified supplier base.
• Strong financial track record.
• Experienced and qualified management

MTAR Technologies Financials:

• Restated Consolidated Total Income for the year ended March 31, 2020 INR 2,181.42/- million.
• Restated Consolidated Profit after tax for the year ended March 31, 2020 INR 313.18/- million.
• Restated Return on Net worth for financial year ended on March 31, 2020 is 13.91%.
• Restated Net Asset Value per Equity Share as on March 31, 2020 is Rs.84.11/- per equity share.
• Order Book MTAR has an order book of Rs 334 crore across three segments, including Rs 160.60 crore for space and defence segment. It has an Rs 80.2-crore order book for the clean energy segment from Bloom Energy and Rs 93.2 crore from Nuclear Power Corp.

Issue Highlights:

• Issue Period: 3^rd March, 2021 – 5^th March, 2021
• Price Band: Rs.574/- to Rs.575/- per equity share
• Issue Size: 1,03,72,419 Number of Shares
• Listing: NSE and BSE
• Market Lot: 26 Shares

The scrip is trading some Rs 430-450 above the IPO price band of Rs 574-575 in the unofficial market, which translates into a 70-75 per cent premium.