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Issue Highlights
MTAR Technologies Ltd is defence and space technologies firm, planning to raise INR 596 crs. It has already raised INR 100 crs through a pre-IPO private placement of 18.51 lakh shares at a price of INR 540 with three entities of SBI and three entities of Axis.
Issue Details
Company Strengths
- Complex product manufacturing capability
- Wide product portfolio
- Modern technology at manufacturing facilities
- Strong and diversified supplier base
- Financial performance growth track record
- Qualified and experienced management team.
Valuation
At upper price band, MTAR is valued at PE of 41.11x on the basis of annualized FY21 E EPS of 13.9, against sector PE of 61.5x.
Issue Break-Up
Utilization of Funds
Background highlights of the company in brief
- Incorporated in November 1999, MTAR Technologies is a leading precision engineering solutions company engaged in the manufacturing of mission critical precision components to serve projects of high national importance.
- The company primarily serve customers in the clean energy, nuclear, and space & defense sectors.
- MTAR has grown into a major group with state-of-the art facilities, with machining, assembling, specialized fabrication, painting and special processes facilities available under one roof, which are probably considered as one of the best facilities available in India, as well as in Asia.
- The key product portfolio of the company includes critical assemblies such as Liquid propulsion engines to GSLV Mark III, Base Shroud Assembly & Airframes for Agni programs, Actuators for LCA, power units for fuel cells, Fuel machining head, Bridge & Column, Thimble Package, Drive Mechanisms etc. to the core of the nuclear reactor.
- Some of the company’s esteemed clients are ISRO, NPCIL, DRDO, Bloom Energy, Rafael, Elbit, among others.
- The company with seven modern manufacturing facilities including an export-oriented unit with over 400 machines capable of micro-level adherence, is currently setting up facilities for roller screws, which are used as actuating mechanisms of aircrafts and missiles.
- MTAR Technologies will be the first manufacturer of precision engineering roller screws in India for nuclear, defence and space segments.
- MTAR, with operations in sectors with high entry barriers, currently has an order book of INR 356.5 crore and is looking to strengthen existing product portfolio and diversify into products with attractive growth and profitability prospects, enhance capabilities and grow value chains to supply critical and differentiated engineered products.
- The company is also looking to expand global operations and enhance its global presence in the sectors it is currently catering to.
- MTAR is also looking to enter into defence offset partnerships with certain global OEMs and has accordingly incorporated a subsidiary, Magnatar Aero Systems.
- The company is looking to capitalize on the upward trend of the nuclear sector in India, increasing indigenization and policy initiatives in the defence sector, and commercialization of the Indian space sector.
Briefing About Directors & Key Managerial Personnel
Briefing Financials
Balance Sheet
Statement of Profit and Loss
Key Ratios
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