MTAR Tech files IPO papers to raise Rs 600-650 cr

By: |
December 19, 2020 4:27 PM

The IPO comprises fresh issuance of up to 40 lakh shares and an offer for sale of up to 82,24,270 shares from promoter and other existing shareholders

The equity shares are proposed to be listed on BSE and NSE.The equity shares are proposed to be listed on BSE and NSE.

MTAR Technologies, a precision engineering solutions company,has filed preliminary papers with capital markets regulator Sebi to raise an estimated Rs 600-650 crore through an initial share-sale. The IPO comprises fresh issuance of up to 40 lakh shares and an offer for sale of up to 82,24,270 shares from promoter and other existing shareholders, according to draft herring prospectus.

Proceeds from the fresh issue will be used to repay debt, fund long-term working capital requirements besides attending to general corporate purpose. According to market sources, the IPO is estimated to fetch Rs 600-650 crore.

The Hyderabad-based company has precision engineering capabilities to build nuclear and pressurized water reactors, aerospace engines, missile systems, aircraft components and many such other critical components and assemblies. MTAR operates out of 7 manufacturing facilities, including an export-oriented unit located in Hyderabad, Telangana, and has been servicing the defence, aerospace and energy sectors for more than four decades.

The company works with clients like Indian Space Research Organization, Defence Research and Development Organization, Nuclear Power Corporation of India and US-based Bloom Energy Corp, besides catering to other well-known establishments like Bharat Dynamics and Hindustan Aeronautics.

JM Financial and IIFL Securities have been appointed as the book running lead managers to the issue.

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