MTAR Technologies IPO
About MTAR Technologies
(i) 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).
(ii) 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).
| Sectors serve | % of revenue |
| Space, defence and Nuclear | 18% |
| Clean Energy | 75% |
(iii) They commenced operations as a partnership firm in 1970, their Company was incorporated on November 11, 1999 upon the conversion of the erstwhile partnership firm into a private limited company, in accordance with the provisions of Part IX of the Companies Act, 1956. 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.
How they get government projects?
They get projects in the nuclear and space and defence sectors by participating in tender enquiries, the qualification process for securing such tenders is extremely stringent as there is no scope for faults in such sectors. They believe that their past experience in the supply of their products, ability to meet specific technical requirements of their customers, reputation for quality and safety features present in their products, financial strength, and the price competitiveness of their offerings, has not only strengthened their position in the market but also has enabled them to establish and maintain relationships with their customers.
For instance, they have been serving customers in the nuclear sector for over 35 years, and have established relationships with the Nuclear Power Corporation of India Limited (“NPCIL”) having served them for over 16 years.
Products of the company
They manufacture and supply specialized products such as fuel machining head, drive mechanisms, bridge and column and coolant channel assemblies, among others, not just for the new pressurised heavy water nuclear reactors, but also for refurbishment of the existing reactors. They have also supplied critical products such as grid plate, control plug and inclined fuel transfer machine for the prototype fast breeder reactor.
Order Book
The aggregate Order Book as on November 30, 2020 was ₹ 356 Crores comprising Order Book in the Nuclear, Space and Defence, and Clean energy sectors of ₹ 93 Crores, ₹ 172 Crores and ₹ 86 Crores, respectively.
| Sector | Order Book (Cr) |
| Nuclear | 93 |
| Space & Defence | 172 |
| Clean energy | 86 |
Clients of the MTAR Technologies
Objects of the MTAR Technologies IPO:
MTAR Technologies IPO Details:
| Open Date: | Mar 03 2021 |
| Close Date: | Mar 05 2021 |
| Total Shares: | 10,372,419 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Type: | Book Building |
| Issue Size: | 596 Cr. |
| Lot Size: | 26 Shares |
| Issue Price: | ₹ 574-575 Per Equity Share |
| Listing At: | NSE,BSE |
| Listing Date: | Mar 15 2021 |
Promoters And Management:
Financials of MTAR Technologies IPO:
| Particulars(cr) | Mar-18 | Mar-19 | Mar-20 | 6MFY21 |
| Sales | 159 | 185 | 218 | 122 |
| Cost of material consumed | 65 | 65 | 87 | 52 |
| Gross Margins | 59% | 65% | 60% | 57% |
| Change in Inventory | -9 | -2 | -15 | -1 |
| Employee Benefit Expense | 44 | 43 | 51 | 23 |
| Other Expenses | 23 | 23 | 32 | 11 |
| Operating Profit | 36 | 56 | 63 | 37 |
| OPM % | 23% | 30% | 29% | 30% |
| Other Income | 1 | 2 | 4 | 1 |
| Interest | 4 | 4 | 4 | 3 |
| Depreciation | 11 | 11 | 12 | 6 |
| Profit After tax | 3 | 40 | 28 | 20 |
| No. of shares | 2.89 | 2.89 | 2.89 | 2.89 |
| EPS in Rs | 1.03 | 13.85 | 8.65 | 6.92 |
| Net-Worth | 205 | 234 | 225 | 244 |
| Book Value | 67 | 76 | 73 | 79 |
| RONW | 1% | 17% | 12% | 8% |
| ROCE | 22% | 28% | 32% | 33% |
Comparison With Peers:
Recommendation on MTAR Technologies IPO:
Lead Manager of MTAR Technologies IPO:
Registrar of MTAR Technologies IPO:
Discussion on MTAR Technologies IPO:
16 Comments
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1121
https://www1.nseindia.com/live_market/dynaContent/live_analysis/sml/smlOrderBook.jsp?param=MTARTECHEQG&symbol=MTARTECH
0 allotment on 12 application
again bad luck
MTAR ALLOTMENT LINK: https://kcas.kfintech.com/ipostatus/
MTAR allotment released at kprism application
MTAR IPO Allotment status on 12.03.2021
https://ris.kfintech.com/ipostatus/ipos.aspx
Allotment is out today itself.
No Allotment in 4 Applications.
Gmp 535
Seems Good IPO to apply for.
Retail likely subscription 25-30 times.
Application-wise (27L) or 18-20 times.
So, very tough Allotment (RII) i.e. only 5% chances for Allotment.
But significant Listing gain. Almost double as per current GMP (400+)
Gmp 400 Rs.
Dear Maulik Ji – Kindly advise your contact number as I need to discuss on IPO issues. otherwise contact me at 96770 42595 as quickly as possible please!
@ Umesh sir,
Should subscribe or avoid
Subscribe.
A) Under Space program they provide following products:
Their offering to ISRO comprised a wide variety of mission critical components and critical assemblies such as liquid propulsion engines, components and assemblies for cryogenic engines, specifically turbo pumps, booster pumps, gas generators and injector heads for such engines, and electro-pneumatic modules to serve its space launch vehicles.
B) Within the defence sector;
They undertook complex assemblies for the DRDO, including such as the base shroud assembly (for Agni missiles),and the assembly of secondary injection thrust vector control (“SITVC”) valves and hydraulic fin tip control (“HFTC”) valves.
MTAR is a key supplier of mission critical components to customers within the space and defence sectors for their programs of national importance.
*Greetings from Concept IR*
You are invited to a Zoom webinar.
When: Feb 25, 2021 04:30 PM India
*Topic: MTAR Technologies Ltd IPO Brokers’ & Analysts’ Webinar 2021*
*Register in advance for this webinar:*
https://zoom.us/webinar/register/WN_OfmTphO7QNKXqaFQRqQmIQ
*Company Spokesperson:* Mr. P Srinivas Reddy, Promoter & Managing Director, MTAR Technologies Limited
*BRLMS*- JM Financial and IIFL Securities.
After registering, you will receive a confirmation email containing information about joining the webinar.
*About the Company:*
MTAR Technologies is 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 our precision machining, assembly, testing, quality control, and specialized fabrication competencies.
The Hyderabad based Company primarily serves customers in the nuclear, space and defence, and clean energy sectors and has significantly contributed to 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.