Mtar Technologies

IPO Details

Below are key details about the IPO of the Company

• IPO Start Date – 03rd Mar 2021
• IPO End Date – 05th Mar 2021
• IPO Price – INR 575
• IPO Lot Size – 26
• Minimum investment required – INR 14,950

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Business Details

MTAR Engineering is defense sector precision engineering Company. It is business to business Company catering mainly Defense sector. Below are the major business verticals of the Company.

• Civilian Nuclear
  • It manufactures products used in Nuclear Reactors. Various products manufactured by the Company are
    • Fuel Machining Head
    • Bridge and Column
    • Calandria Vault Top hatch cover beams and deck plate assembly.
    • Coolant channel assemblies
    • Drive mechanisms
    • Channel health assessment systems – It is working with BARC on this project.
• Space
  • It manufactures liquid propulsion engines, cryogenic engines and electro-pneumatic modules.
  • It provided components used in Mangalyaan and Chandrayan II projects
  • It provides services like Liquid Propulsion Vikas Engine Assembly
  • Rocket Engine rotating assembly
  • Main injector body
  • Latchable series redundant valve
  • Pogo command modules
• Defense and Aerospace
  • It provides high precision mechanical system and sub system to Aerospace industries
  • Aluminum alloy products like Bent body and Out Stop tubes used in Aerospace industries
• Clean Energy
  • Have association with Bloom Energy and Andritz hydropower.
  • Manufactures Hydrogen boxes and electrolyzes used in power generation
  • Manufactures shafts for Andritz hydropower
• Ball Screws
  • Sole manufacturer of Ball Screws in India
  • Products are used in Nuclear, Defense and Space sector
  • These products are mainly imported in India
• Roller Screws
  • It is also imported in India as of now.
  • It is setting up manufacturing location for these products also
  • It will be sole manufacturer of it in India post commencement of operations.

The manufacturing location of Company is situated in Hyderabad. It also has below customers for its products

• Civilian Nuclear sector
  • NPCIL
  • BARC
  • ECIL
• Space
  • ISRO
• Defense and Aerospace
  • Rafael
  • Bharat Dynamics limited
  • HAL
  • DRDO
• Clean Energy
  • Bloom Energy
  • Andritz Hydro
• Marine
  • Kongsberg

Financial Snapshot

Below are key financials of the Company for year ending 2020

• Total Assets – 3,462
• Total Income – 2,181
• Profit for year – 313

IPO Subscription Status

Below is IPO Subscription status of the Company. I will be updating this section with time.

• QIB – 164.99 times
• NII – 650.79 times
• RII – 28.40 times
• Employee – 0.00 times
• Total Subscription is 200.79 times

Below is meaning of the Key terms used above

• QIB is (Institutes or Mutual Funds like HDFC AMC etc)
• NII is (People bidding for more than 2 lakhs in IPO application)
• RII is (People bidding for less than 2 lakhs)
• Employee and Others are Reserved Quota Investors.

My Opinion

MTAR Technologies is in Precision Engineering sector which makes it different from many other Engineering Companies listed on exchanges. It caters some of the futuristic sectors like Nuclear power and Clean Energy.

Along with these two sector it is also creating Screws which are import substitutes. These will be additional revenue stream for the Company. India is also increasing its share in export of Defense products and services which will help the Company in long run.

It will be interesting to see how well it is received by Investors. I am suspecting good subscription for it. You should read the Make Money with IPO article before planning to invest in this Company as it may not give listing gain or may have slight listing gains.