MTAR Technologies IPO
MTAR Technologies IPO — date, price band, lot size & details 2021
MTAR Technologies listed on 15 Mar 2021 at ₹1,050, 82.6% above the ₹575 issue price.
MTAR Technologies is a precision engineering company that makes mission critical components and assemblies for the clean energy, nuclear, space and defence sectors. Its total income was Rs 218.14 crore in FY2020.
Stock price
MTAR Technologies is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 10 November.
- Open 03 Mar 2021
- Close 05 Mar 2021
- Allotment 10 Mar 2021
- Refund/credit 12 Mar 2021
- Listing 15 Mar 2021
Issue summary
The terms of the offer, as filed.
| IPO Dates | 3 to 5 Mar, 2021 |
|---|---|
| Price Band | ₹574 – ₹575 |
| Face Value | ₹10 |
| Lot Size | 26 Shares |
| Issue Size | ₹596.41 Cr |
| Sale Type | Fresh capital cum OFS |
| Listing On | BSE, NSE |
| Registrar | KFin Technologies Limited |
| Min Investment | ₹ 14,950 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 26 shares at the ₹575 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 26 | ₹14,950 |
| Retail (max) | 13 | 338 | ₹1,94,350 |
| S-HNI (min) | 14 | 364 | ₹2,09,300 |
| S-HNI (max) | 66 | 1,716 | ₹9,86,700 |
| B-HNI (min) | 67 | 1,742 | ₹10,01,650 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 6
- 01Total income rose from Rs 160.55 crore in FY2018 to Rs 218.14 crore in FY2020.
- 02Profit after tax was Rs 28.07 crore in the nine months to 31 December 2020, on total income of Rs 177.99 crore.
- 03Total borrowing fell from Rs 29.13 crore on 31 March 2020 to Rs 16.00 crore on 31 December 2020.
- 04EBITDA rose from Rs 32.82 crore in FY2018 to Rs 62.33 crore in FY2020.
- 05Its customers include ISRO, NPCIL and DRDO, and the company makes components to tolerances of 5 to 10 microns.
- 06Net worth was Rs 239.26 crore on 31 December 2020 against borrowing of only Rs 16.00 crore.
Risks · 6
- 01Profit after tax fell from Rs 39.20 crore in FY2019 to Rs 31.32 crore in FY2020.
- 02Rs 472.90 crore of the Rs 596.41 crore issue was offer for sale, so most of the money went to selling shareholders.
- 03The pre-issue P/E was 58.61 at the upper band of Rs 575, based on EPS of Rs 9.81.
- 04Orders come from a small group of government agencies and large customers, so a delay in one programme can move results. All 7 plants are in Hyderabad.
- 05Total income was only Rs 177.99 crore in the nine months to 31 December 2020, so growth is uneven from year to year.
- 06Promoter holding fell from 62.24% before the issue to 50.25% after it.
Three years of numbers
All figures in ₹ crore, as reported in the MTAR Technologies offer document.
| Metric | 31 Dec 2020 | 31 Mar 2020 | 31 Mar 2019 | 31 Mar 2018 |
|---|---|---|---|---|
| Assets | 381.91 | 346.27 | 305.16 | 281.03 |
| Total Income | 177.99 | 218.14 | 185.91 | 160.55 |
| Profit After Tax | 28.07 | 31.32 | 39.20 | 5.42 |
| EBITDA | 53.75 | 62.33 | 55.96 | 32.82 |
| NET Worth | 239.26 | 225.08 | 234.98 | 205.52 |
| Reserves and Surplus | 218.86 | 198.32 | 206.77 | 177.31 |
| Total Borrowing | 16.00 | 29.13 | 28.73 | 19.79 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the MTAR Technologies RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
MTAR Technologies IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹9.81 | ₹9.13 |
| P/E Ratio (x) | 58.61 | 62.98 |
| Market Cap at Offer Price (₹ Cr) | ₹1,645.29 | ₹1,767.83 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹575 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹212.92 Cr of the issue is earmarked to named objects.
About the company
It serves customers in the clean energy, nuclear, space and defence sectors. Clients include ISRO, NPCIL, DRDO, Bloom Energy, Rafael and Elbit.
Products include liquid propulsion engines for GSLV Mark III, base shroud assemblies and airframes for the Agni programme, actuators for the LCA, power units for fuel cells and fuel machining heads. The company has 7 manufacturing facilities in Hyderabad, Telangana.
The IPO was Rs 596.41 crore, with Rs 123.52 crore of fresh issue and Rs 472.90 crore of offer for sale. Rs 63.00 crore of the net proceeds was planned for repaying borrowings and the rest mainly for working capital.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
JM Financial Ltd.
74 issues handledBest listing: Tempsens Instruments (India) (+111.3%). Weakest: Turtlemint Fintech Solutions (-10.4%).
IIFL Capital Services Limited
71 issues handledBest listing: Nazara Technologies (+80.7%). Weakest: Rategain Travel Technologies (-15.3%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of MTAR Technologies?
The current Grey Market Premium is ₹500, or 87% over the issue price.
What is the MTAR Technologies IPO price band?
₹574 to ₹575, on a face value of ₹10.
When is the allotment?
The basis of allotment is 10 March 2021, with listing on 15 March 2021.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — KFin Technologies Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
