MTAR Technologies IPO Date, Price, GMP, Review and Details
Hyderabad based MTAR Technologies IPO would open for subscription on 3rd March, 2021. MTAR Technologies is a leading national player in the precision engineering industry. Company generates strong revenue and improved margins in the last 3+ years. In this article, we would provide MTAR Technologies IPO Issue details.
Also Read: Best Largecap Stocks to invest in 2021 (Consistent Performers)
About MTAR Technologies
Company is a leading precision engineering solutions company engaged in the manufacture of mission critical precision components.
They primarily serve customers in the clean energy, nuclear and space and defence, sectors. Since inception, they have strived to grow continually, contributing to the Indian civilian nuclear power program, Indian space program, Indian defense and aerospace sector, as well as to the global clean energy sector and the global defense and aerospace sector.
Over the years, they have also developed import substitutes such as ball screws and water lubricated bearings that are specialized and used in the sectors they cater to. They believe the engineering capability of the company, evolved over decades, has enabled them to consistently offer quality complex precision manufactured components and assemblies, within stipulated timelines and at reasonable cost in most cases, allowing them to forge a robust relationship with its customers.
MTAR Technologies IPO Details
| MTAR Technologies IPO Issue Details | |
|---|---|
| IPO Opening Date | 03-Mar-21 |
| IPO Closing Date | 05-Mar-21 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs 10 per equity share |
| IPO Price band | Rs 574 to Rs 575 per equity share |
| Market Lot | 26 Shares |
| Min Order Quantity | 26 Shares |
| Listing at | BSE and NSE |
| Issue Size | Total Rs 596.4 Crores Fresh: Rs 123.5 Crores Offer for Sale: Rs 472.9 Crores |
Objects of issue – MTAR Technologies IPO
Here are the objects of the IPO issue.
1) Offer for sale (OFS): Under OFS, it would allow selling shareholders to sell equity shares. The company would not get any proceeds from this issue.
2) Fresh Issue: The proceeds from the fresh issue of equity shares would be utilized for:
i) Repayment / prepayment in full or in part, of borrowings availed by company
ii) Funding working capital requirements
iii) General corporate purposes.
Who are the company promoters?
Parvat Srinivas Reddy, P. Leelavathi, K. Shalini, D. Anitha Reddy, C. Usha Reddy, G. Kavitha Reddy, Anushman Reddy, P. Kalpana Reddy, Saranya Loka Reddy, A. Manogna, and M. Madhavi are the promoters of the company.
Company Financials
Here is the summary of the financial information of the company.
| Fin. Year ending |
Total Revenues (Rs in Millions) | Profits after tax (Rs in Millions) |
Profit % |
|---|---|---|---|
| Mar-2018 | 1,605.4 | 54.2 | 3.4% |
| Mar-2019 | 1,859.1 | 391.9 | 21.1% |
| Mar-2020 | 2,181.4 | 313.1 | 14.4% |
| 9 Months ending Dec-20 | 1,779.9 | 280.6 | 15.8% |
Its EPS for FY2020 is Rs 25.03 and last 3 years average EPS is Rs 20.95.
Why to invest in this IPO
Here are a few reasons to invest.
1) MTAR Technologies is a leading national player in the precision engineering industry in India.
2) Strong revenue growth in the last 3 years.
3) It generates stable margins for FY20 (14.4%) and 9 months ended Dec-20 (15.8%). However, its margins were high at 21.1% for FY19.
Risk Factors of investing in this IPO
These risk factors can impact company revenue and margins which would affect its share price. Investors should go through these points and understand them before investing.
1) Company depend on Bloom Energy and limited number of customres for significant portfion of its revenue. Loss of any such customers woudl have impact on company business
2) Company depends significantly on orders from NPCIL, ISRO and DRDO. If there is any decline or prioritization of funding by Indian budget towards other departments, company would adversely impact
3) Company primarily rely on purchase orders to govern the volume and other terms of sales of its products. It do not have long term supply agreements with its customers.
4) Company is subject to strict quality standards and any failure to comply may lead to cancellation of existing orders nad future orders would have impact
5) Covid-19 and further deteriotiation of general economic conditions has impacted its business and it can have impact in future too
6) Volatality in supply of raw materials may have adverse effect on its business
7) Company could make investments and acquisitions in the future and it involve consider integration costs. If the benefits are not realised as expected, it woudl have impact on the business
8) They may face claims and incur additional rectification costs for delay or defects in respect of its precision component and equipment. This could impact its operations and may face potential liabilities
9) Company is unable to trace some of its historical corporate records. It cannot assure that no legal proceedings or regulatory actions will be initiated against the company in future.
10) Pricing pressure from the customer may adversely affect its profits
11) For complete internal and external risk factors, you can refer the RHP of the company.
MTAR Technologies IPO Dates
| MTAR Technologies IPO Schedule | |
|---|---|
| Offer Open | 03-Mar-21 |
| Offer close | 05-Mar-21 |
| Finalization of Allotment | 10-Mar-21 |
| Initiation of Refunds | 12-Mar-21 |
| Credit to Demat Account | 15-Mar-21 |
| IPO Shares Listing Date | 16-Mar-21 |
How to apply MTAR Technologies IPO?
You can login to your demat account, visit IPO section and click on MTAR Technologies IPO link. You can then enter minimum lot quantity and price band and then submit.
Also Read: Which are the Bluechip Multibagger Stocks to invest in 2021?
How to apply MTAR Technologies IPO through Zerodha?
You can follow below process to apply MTAR Technologies IPO on Zerodha.
1) Visit the Zerodha website and log in to Console.
2) Go to Portfolio and click the IPOs link.
3) Go to MTAR Technologies IPO link and click on Bid option.
4) You can enter your UPI ID, Qty and Price for which you want to apply.
5) Click on Submit IPO application form
6) You can visit the UPI App (net banking or BHIM which you opted) to approve the mandate.
7) You can visit Zerodha IPO Application Process and check for more information.
MTAR Technologies IPO Review – Should you invest?
Our view (about whether one should invest or avoid) would be published soon through separate article.
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Dear Sir,
In my savings account, some of the money got blocked after applying for IPO (MTAR) on 03.03.2021. This is apart from the IPO amount.
As the shares were not allotted, the IPO amount was released and the other amount of Rs. 4,075/ (INR 135+1970+1970) is not yet released even after following with bank and Axis Direct customer care.
Request you to review and release the same at the earliest.
Regards,
KVNR Patnaik,
Hello KVN, If the IPO shares are not allocated, ideally the amount would be released by the demat broker. You need to talk to Axis customer care to find out the reason why they have not released it. Others including me would not be able to help in this matter
Liked analysis of IPO.Thanks.Who are their peers in india and abroad and how much debt it is carrying on date.what would be its market cap after the issue and promoters holdings therein.
Hello VB Sharma, This would be reviewed in detail in next article.