The initial public offering of MTAR Technologies will open for subscription on March 3, 2021. From the IPO, the Hyderabad-headquartered engineering solutions firm aspires to raise up to Rs 600 crore. The IPO closes on March 5.

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The price band of the IPO is likely to be Rs 574-575 per share. Talking about the procedure of IPO, it consists of a fresh issue of 21,48,149 equity shares. Apart from this, the IPO offers for sale of 82,24,270 equity shares by promoters and investors, as per the draft herring prospectus filed with SEBI, capital market regulator.

Coming to the book-running lead managers, IIFL Securities and JM Financial have been given the charge to take care of the IPO. MTAR Technologies aspires to utilise net proceeds from its fresh issue and pre-IPO placement to repay debt, fund long-term working capital needs apart from attending to wide-ranging corporate purpose.

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MTAR Technologies' IPO to open on March 3 at a price band of Rs 574-575 per share; check details here

The firm is supported by Mathew Cyriac who is the former India private equity co-head of Blackstone.

Since the inception of this year, this is going to be the ninth IPO. Prior to this, there have been the IPOs of Indigo Paints, Home First Finance Company, Nureca, Stove Kraft, Brookfield India REIT, Indian Railway Finance Corporation, RailTel Corporation of India and Heranba Industries.

For the financial year ended March 31, 2020, MTAR Technologies reported a net profit of Rs 31.32 crore. The total revenue of the company stood at Rs 218.14 crore. On the other hand, the total assets were at Rs 305.16 crore in FY20.

When it comes to the services of MTAR, it has precision engineering capabilities to build missile systems, aircraft components, nuclear and pressurised water reactors, aerospace engines, and many other vital components and assemblies. It runs seven manufacturing units including an export-oriented unit located in Hyderabad, Telangana. Apart from this, for over four decades, it has been servicing the defence, aerospace and energy sectors.

Apart from catering to esteemed establishments like Bharat Dynamics and Hindustan Aeronautics, the firm works with clients like Nuclear Power Corporation of India, Indian Space Research Organization, Defence Research and Development Organisation and US-based Bloom Energy Corp.

(Edited by : Ankit Gohel)