Precision engineering solutions company, MTAR Tech expects strong growth going forward. Talking to CNBC-TV18, Srinivas Reddy, MD & Promoter of the company said that he sees the firm growing at 20 percent CAGR YoY with the current infrastructure.

“We are expecting very good growth in the coming years. Our current CAGR is at around 16 percent and we are expecting to grow higher in the years to come. We can go beyond 20 percent CAGR on a year-on-year (YoY) basis comfortably with the current infrastructure that we have,” he said in an interview.

The company's IPO opened on Wednesday with an issue size of nearly Rs 600 crore. The IPO involves offer for sale (OFS) as well as fresh issue.

Reddy also expects to sustain margins and even see some improvement.

“We will be sustaining 29 percent margins because we are in a niche area. We have some exclusive products in all the segments that we are working with. Our R&D division, we are rolling out even further new products next year. So, we will be comfortably sustaining the margins or we will be doing slightly better than what we are doing,” he said.

(Edited by : Pranati Deva)