Indian Engineering Firm MTAR Tech To File For IPO

The company, backed by Mathew Cyriac, the former India private equity co-head of Blackstone, develops and manufactures components and equipment for the defence, aerospace and nuclear energy sectors. MTAR was incorporated in 1970.

“They will file the draft red herring prospectus in the coming week. The plan is to raise around ₹600-650 crore through the IPO, through a mix of fresh issue of shares and an offer for sale by Cyriac’s investment firm. He holds a 33% stake which he had acquired from his previous employer Blackstone for ₹250 crore,” said one of the people cited above, requesting anonymity as he is not authorized to speak with the media.

Investment banking arms of JM Financial and IIFL are advising MTAR on the IPO, said the second person.

“The company has a robust order book of over ₹300 crore and they are expecting another ₹200 crore of orders in Q4. They are also in the process of setting up an additional facility at Adibatla (Telangana) which is expected to become operational soon,” he said.

MTAR currently operates out of seven manufacturing facilities including, an export oriented unit.

“MTAR works with clients such as Indian Space Research Organization, Defence Research and Development Organization, Nuclear Power Corporation of India Ltd and US-based Bloom Energy Corp., besides catering to other well-known establishments like Bharat Dynamics, Hindustan Aeronautics, BrahMos and Rafael,” said the first person.

The company has seen strong order flows since the lockdown restrictions were eased and this has resulted in rating upgrades. Rating agency ICRA Ltd has upgraded MTAR technologies twice, taking its rating from BBB- to BBB+ as on 8 December. In fiscal 2020, the company reported a revenue of ₹214.2 crore and a profit of ₹31.3 crore, while in the previous fiscal it had reported a revenue of ₹184.1 crore and a profit of ₹39.2 crore.

This article was first published on livemint.com.