MTAR Technologies IPO: Stock lists at 85pc premium on BSE in strong market debut
Shares of Hyderabad-based engineering company MTAR Technologies kicked off trading on a strong note, listing at an 85.03 percent premium of its IPO issue price today.
Against an IPO issue price of Rs 575, the share debuted at Rs 1,063.90 on BSE. On NSE, the stock listed at Rs 1,050 - an 82.6 percent premium over the issue price.
In March 2021, the Rs 597-crore initial public offering (IPO) of MTAR Technologies received strong interest from investors. In a three-day issue between March 3 and March 5, it was subscribed over 200 times and received bids for over 145 crore equity shares against 72.6 lakh stocks on offer.
Ahead of this IPO, MTAR raised Rs 179 crore from anchor investors.
In the near future, the company plans to use fund proceeds from the issue to repay approximately Rs 50 crore of debt and fund its increasing working capital requirements.
According to MTAR's MD Srinivas Reddy, the issue was made in view of future growth for the company so that its internal accruals can be utilised for establishing new capabilities.
MTAR Technologies is an engineering company with clients such as Indian Space Research Organisation, NPCIL, DRDO, , Rafael, Elbit, etc.
MTAR was started in 1970 by engineer friends P. Ravindra Reddy and the late K. Satyanarayana Reddy. The engineers took up a challenge to manufacture coolant channel assemblies and started the company with four machines in a small workshop. A year after inception, Ravindra’s brother PJ Reddy joined to handle the business’ finances.
Successfully executing the first project, they extended their vision to indigenise nuclear, defence and space manufacturing for India and grew MTAR into a leading engineering company with over 1,200 employees.
The company claims it has over 400 machines including 160-plus CNC machines spread across seven units. In FY 2020, it reported revenue from operations at Rs 213.8 crore, order book size at Rs 345 crore and gross profits at 66.2 percent.