MTAR Technologies
Mainboard₹596 Cr issue
+85.03%
Listing gain over issue price
Issue size
₹596 Cr
1 lot at cut-off
₹14,950
Lot size
26shares
Open
03 Mar 2021
Close
05 Mar 2021
Allotment
10 Mar 2021
Listing
15 Mar 2021
Listing performance
Issue price
₹575
Listed at
₹1,063.90
Listing-day close
₹1,082.50
Latest price
₹6,460
Close on 23 Oct 2026
Listing gain
+85.03%
Return since issue
+1023.48%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 03 Mar 2021 – 05 Mar 2021
- Listing date
- 15 Mar 2021
- Face value
- ₹10 per share
- Issue price
- ₹575 per share
- Lot size
- 26 shares
- Total issue size
- ₹596 Cr
- Market cap at offer price
- ₹1,769 Cr
- Promoter holding
- 62.24% → 50.25% pre-issue → post-issue
- ISIN
- INE864I01014
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- IIFL Capital Services Ltd.
- Registered office
- 18, Technocrats Industrial Estate, Balanagar, Hyderabad, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 31,11,725 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 26 shares per lot, in multiples, at ₹575
| 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 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
31,11,725
Anchor portion
₹179 Cr
at ₹575 per share
Valuation and performance
Valuation at offer price
₹575 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹1,769 Cr |
About MTAR Technologies
MTAR Technologies Limited was incorporated on November 11, 1999 as a private limited company upon the conversion of M/s Machine Tools Aids and Reconditioning, a partnership firm. It was converted to a public limited company on November 2, 2020. The company is engaged in the manufacture of mission critical precision components with close tolerances (5-10 microns) and critical assemblies for projects of high national importance, through precision machining, assembly, testing, quality control, and specialized fabrication competencies, some of which have been indigenously developed and manufactured. The company primarily serves customers in the nuclear, space and defence, and clean energy sectors including NPCIL, ISRO, DRDO, and Bloom Energy. Revenue from operations has grown from ₹1,595.97 million in Fiscal 2018 to ₹2,137.74 million in Fiscal 2020.
Company Analysis
from DRHPMTAR Technologies Limited is a leading precision engineering solutions company manufacturing mission-critical precision components with close tolerances (5-10 microns) and critical assemblies for the nuclear, space and defence, and clean energy sectors.
MTAR Technologies Limited was incorporated on November 11, 1999 as a private limited company upon the conversion of M/s Machine Tools Aids and Reconditioning, a partnership firm. It was converted to a public limited company on November 2, 2020. The company is engaged in the manufacture of mission critical precision components with close tolerances (5-10 microns) and critical assemblies for projects of high national importance, through precision machining, assembly, testing, quality control, and specialized fabrication competencies, some of which have been indigenously developed and manufactured. The company primarily serves customers in the nuclear, space and defence, and clean energy sectors including NPCIL, ISRO, DRDO, and Bloom Energy. Revenue from operations has grown from ₹1,595.97 million in Fiscal 2018 to ₹2,137.74 million in Fiscal 2020.
Precision EngineeringNuclear EnergySpace and DefenceClean EnergyManufacturing
Objects of the Issue
- Repayment / prepayment in full or in part, of borrowings availed by our Company ₹550.00 million p.21
- Funding working capital requirements ₹950.00 million p.21
- General corporate purposes p.21
- Repayment/prepayment in full or in part, of borrowings availed by our Company ₹550.00 million p.95
- Funding working capital requirements ₹950.00 million p.95
- General corporate purposes p.95
- Funding long-term working capital requirements ₹ 950.00 million p.99
- General corporate purposes p.99
Issue Structure
- Total Issue
- Up to 12,224,270 Equity Shares aggregating up to ₹ [●] million
- Fresh Issue
- 4,000,000 Equity Shares aggregating up to ₹ [●] million
- Offer for Sale
- Up to 8,224,270 Equity Shares aggregating up to ₹ [●] million by the Selling Shareholders
- Price Band
- ₹ [●] per Equity Share (Floor Price) to ₹ [●] per Equity Share (Cap Price)
- Lot Size
- [●] Equity Shares
- Face Value
- ₹ 10 each
Business Model
The company earns revenue through the manufacture and supply of precision engineered components and assemblies to customers in the nuclear, space and defence, and clean energy sectors. It operates through precision machining, assembly, testing, quality control, and specialized fabrication capabilities across six manufacturing units in Hyderabad. The company primarily relies on short-term purchase orders from customers rather than long-term supply agreements. Revenue is generated from both domestic customers (32.42% of revenue in FY2020) and international customers (67.58% of revenue in FY2020).
Business Segments
Manufacture of mission critical precision components and assemblies for nuclear power projects and customers such as NPCIL
Manufacture of mission critical precision components and assemblies for space and defence projects including customers such as ISRO and DRDO
Manufacture of precision engineered components for clean energy applications including customers such as Bloom Energy
Designs, manufactures, and maintains precision components and equipment for defense and space sectors
Manufacture of critical nuclear power plant components including fuel machining heads, bridge and carriage assemblies, transfer magazines, coolant channels, standpipe thimble assemblies, liner tubes, ball screws, sealing plugs, shielding plugs, fuel locator assemblies, adjustor rod mechanisms, shut-off rod drive mechanisms, calendria, PFBR assemblies, grid plates, and control plugs for PHWR and FBR reactors.
Manufacture of defence and aerospace products including complex aircraft airframes, base shroud assemblies for Agni missiles, actuators for LCA Tejas fighter aircraft, critical front and rear shafts for fighter aircraft, turbine nozzles and discs, landing gear pistons, and other critical defence and aerospace components.
Manufacture of specialized precision components including ball screws of JIS standard C1 to C7 accuracy used in machine-tools, CNC machines, defence, aerospace and space programs; roller screws for aircraft and missile actuation mechanisms; and water-lubricated bearings.
Manufacturing of fuel cell components and systems for clean energy applications. MTAR is identified as one of the key suppliers to Bloom Energy, the largest player in the fuel cell space.
Specialized sheet metal fabrication facilities serving defence, aerospace and fuel cell sectors. The company is planning to set up a specialized sheet metal fabrication facility in 2021.
Manufacturing specialized products for nuclear reactors including fuel machining heads, bridge & column assemblies, coolant channels, grid plates, control plugs for PHWR and PFBR reactors.
Supply of mission-critical components for space launch vehicles (PSLV, GSLV) including liquid propulsion engines, cryogenic engine components, defence products for Agni missiles, and international defence products.
Manufacturing power units (hot boxes for methane-based power generation), hydrogen boxes, and electrolyzers for fuel cell systems supplied to Bloom Energy and related clean energy applications.
Manufactures fuel machining heads, bridge and columns, grid plates, sealing plugs, drive mechanisms, top hatch cover beams, CHAS, ball screws and water lubricated bearings for nuclear reactors and related applications
Manufactures base shroud assembly and air frames for Agni missiles, actuator assembly components for space launch vehicles, components for LCA, various missile parts, valves, electro-pneumatic modules, liquid propulsion engines, cryogenic engines, ball screws and water lubricated bearings
Manufactures power units and hydrogen boxes and electrolyzers to serve Bloom Energy and other clean energy customers
Manufacture and supply of mission-critical components for nuclear reactors including fuel machining head, drive mechanisms, bridge and column, coolant channel assemblies, grid plate, control plug, and inclined fuel transfer machine for pressurised heavy water reactors and fast breeder reactors.
Manufacture of mission-critical components including liquid propulsion engines, cryogenic engine components (turbo pumps, booster pumps, gas generators, injector heads), electro-pneumatic modules for space launch vehicles, base shroud assemblies for missiles, secondary injection thrust vector control valves, hydraulic fin tip control valves, aluminium weldments, and machined defence components.
Development and manufacture of power generation units including hot boxes using methane, hydrogen boxes using methane to generate hydrogen, and electrolysers to produce methane-free hydrogen for power generation. Primary customer is Bloom Energy Inc., United States.
SWOT Analysis
Strengths
- • Leading precision engineering company with indigenous capabilities(p.20)
- • Long-standing customer relationships with strategic government institutions(p.29)
- • Strategic geographic advantage with access to major defense and space organizations(p.30)
- • Strong historical revenue and profitability growth(p.32)
- • Significant order backlog across key sectors(p.31)
- • End-to-end advanced manufacturing capabilities(p.37)
- • Established presence in precision engineering with long operational history(p.65)
- • Diversified customer base across multiple sectors including defence, aerospace, and energy(p.49)
- • Strong financial position with consistent profitability(p.89)
- • Precision engineering expertise with complex product manufacturing capability(p.104)
- • Wide product portfolio leading to long-standing relationships with customers(p.104)
- • Modern technology at state-of-the-art manufacturing facilities(p.104)
- • Strong and diversified supplier base for sourcing raw materials(p.104)
- • Track record of growth in financial performance(p.104)
- • Experienced and qualified management team(p.104)
- • Precision engineering expertise with complex product manufacturing capability for mission-critical components with close tolerances (5-10 microns)(p.218)
- • Long-standing relationships with major domestic customers across nuclear, space, defence and clean energy sectors(p.218)
- • State-of-the-art manufacturing facilities with advanced equipment and end-to-end capabilities(p.220)
- • Strong and diversified supplier base for sourcing specialized raw materials(p.222)
- • Track record of strong financial growth with EBITDA CAGR of 37.80% from FY2018 to FY2020(p.222)
- • Experienced management team with deep technical expertise and low employee attrition(p.223)
- • Wide product portfolio with 14 kinds of products in nuclear sector, six in space and defence, and three in clean energy(p.219)
- • Strategic location in Hyderabad, a key defence research and development centre with proximity to major defence organizations(p.220)
- • Established international presence with significant export revenue(p.226)
- • Sole supplier to major fuel cell customer in India(p.237)
- • Comprehensive in-house manufacturing capabilities under one roof(p.231)
- • Strong long-term employee retention(p.236)
- • Access to government-backed major customers(p.234)
- • Growing order book demonstrating market strength(p.228)
Weaknesses
- • Dependency on limited customer base for significant revenue proportion(p.29)
- • Lack of long-term supply agreements with customers(p.30)
- • Loss of historical corporate records affecting due diligence(p.36)
- • Heavy reliance on raw material from limited suppliers(p.34)
- • Significant fixed costs from substantial equipment holdings(p.37)
- • Promoter share pledge creating potential dilution risk(p.42)
- • Heavy dependence on contract labour creates operational and cost risks(p.45)
- • Promoter litigation pending concerning share transmission(p.45)
- • Three civil litigation cases pending against Promoters(p.45)
- • History of statutory compliance and corporate governance issues(p.54)
- • Limited experience of some Promoters in precision engineering industry(p.53)
- • Negative cash flows in recent periods(p.53)
- • Inadequate insurance coverage for potential losses(p.51)
- • Dependence on few major customers (BHEL, HAL, DRDO, NPCIL)(p.137)
- • Plant concentration in single location (Hyderabad) creates operational risk(p.157)
- • Heavy dependency on clean energy sector (Bloom Energy) with 47.48% of revenue in H1 FY2021(p.223)
- • Low concentration of raw material procurement with top five suppliers accounting for 76.86% of purchases(p.222)
- • Lack of long-term contracts with raw material suppliers creating supply chain vulnerability(p.222)
- • No dedicated production lines for identified products, relying on flexible manufacturing which may affect standardization(p.221)
- • Dependence on government order timelines and budget allocations for nuclear and defence sectors(p.191)
- • High dependence on a few major customers
- • Manufacturing facilities concentrated in single location(p.236)
- • Debt increased significantly during review period(p.277)
Opportunities
- • Supportive government policies for manufacturing and engineering sectors(p.20)
- • Government-sanctioned expansion of domestic nuclear capacity(p.30)
- • Emerging hydrogen and clean energy market opportunities(p.41)
- • Liberalization of defense sector enabling private participation and growth(p.30)
- • Expansion of space sector with commercialization opportunities(p.30)
- • New product development and market expansion capabilities(p.42)
- • Expansion of manufacturing capacity through planned facilities(p.48)
- • Growth in precision components and equipment manufacturing sector in India(p.52)
- • Enhanced market visibility and brand recognition through public listing(p.95)
- • Reduction of debt burden to improve financial flexibility(p.96)
- • Government's Make in India initiative to raise manufacturing share to 25% of GDP by 2025(p.121)
- • Increased FDI in defence manufacturing with 74% under automatic route from 49%(p.134)
- • Defence sector spending of $130 billion over next 7-8 years with focus on indigenisation(p.133)
- • Nuclear capacity expansion with 14 planned reactors of 10.5 GWe capacity(p.150)
- • Government's Atmanirbhar Bharat initiative promoting domestic manufacturing in defence(p.134)
- • Potential to become India's first precision roller screw manufacturer for niche segments(p.137)
- • Planned expansion of sheet metal fabrication facility for defence, aerospace and fuel cell sectors(p.137)
- • Government's sanction to manufacture 10 fleet reactors with 7,000 MWe combined capacity in India(p.224)
- • Indigenization of 108 defence systems and sub-systems and import ban on 101 defence items announced by Government(p.225)
- • India's defence spends rising with 6.90% growth over past five years, highest amongst peers(p.225)
- • Commercialization of Indian space sector with ISRO's plan for 31 satellite missions and 32 launch missions over next two years(p.191)
- • Growing demand for clean energy with fuel cell installations growing at 35-40% CAGR over next five years(p.224)
- • Make in India and Atmanirbhar Bharat initiatives promoting domestic defence manufacturing(p.225)
- • FDI limit in defence sector increased to 74% from 49%, expected to attract global players and create offset opportunities(p.225)
- • Global space market opportunity of USD 360 billion with ISRO commercializing and SSLV making launches more competitive(p.225)
- • Development of roller screws as import substitute for nuclear, space and defence sectors(p.224)
- • Expand international presence through exports and new markets(p.226)
- • Global government support for hydrogen and fuel cell development(p.226)
- • Defence offset partnerships and new contracts with global OEMs(p.226)
- • Capacity expansion to meet anticipated demand increase(p.227)
- • Diversification into complementary capabilities through selective acquisitions(p.227)
- • Cost reduction through lean practices and scale economies(p.227)
Threats
- • Dependency on government budget allocations to nuclear, space and defense departments(p.29)
- • Increased competition from liberalization of defence and space sectors(p.29)
- • Volatility and supply constraints in raw material markets(p.34)
- • COVID-19 pandemic impact on business operations and demand(p.33)
- • Pricing pressure from customers affecting margins(p.37)
- • Exchange rate fluctuation risk from significant export exposure(p.42)
- • Potential disruption from international customer facility setup in India(p.41)
- • COVID-19 pandemic disrupting operations and demand(p.54)
- • Transportation and logistics disruptions affecting supply chains(p.48)
- • Interest rate volatility increasing financing costs(p.48)
- • Natural disasters and workplace accidents disrupting production(p.46)
- • Foreign currency exchange rate volatility affecting returns(p.61)
- • Inflationary pressures limiting ability to pass costs to customers(p.57)
- • Regulatory and policy changes creating compliance burdens(p.58)
- • Dependence on few customers creating revenue concentration risk(p.49)
- • Competition from established global precision engineering players(p.125)
- • High entry barriers in precision engineering sector limiting market growth(p.136)
- • Nuclear sector growth constrained by rising costs and safety concerns post-Fukushima(p.144)
- • Renewable energy becoming more cost-competitive than nuclear power(p.144)
- • India's nuclear capacity expansion proceeding at slow pace with construction delays(p.144)
- • Supply chain disruptions and geopolitical tensions impacting defence procurement(p.120)
- • Global competition from established players in space sector with cost-effective reusable rocket technology(p.191)
- • Volatility in global arms trade with 13.9% decline in SIPRI TIV in 2018 despite rising long-term trend(p.164)
- • India's declining share of global arms exports at minuscule 0.2% facing competition from established exporters(p.174)
- • Declining trend in India's arms imports from defence modernization shifting to domestic manufacturing(p.166)
- • Global military expenditure expected to decline 6-7% in 2020 due to COVID-19 pandemic(p.168)
- • India's defence budget constraints with expected 4-6% decline in defence spending in 2020(p.168)
- • COVID-19 pandemic impacting India's space sector with market hitting FY21 due to small number of launches(p.190)
- • High volatility in raw material costs affecting margins with material expenses at 40-42% of revenue(p.222)
- • High entry barriers in space equipment industry with technological capabilities and manufacturing prowess as prerequisites(p.194)
- • Intense competition from larger domestic and international competitors(p.236)
- • Raw material supply chain vulnerability and price volatility(p.234)
- • Dependence on imported raw materials and foreign exchange exposure(p.234)
- • Regulatory compliance and environmental restrictions(p.235)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Parvat Srinivas Reddy | Promoter | 6.33% | — |
| P. Leelavathi | Promoter | 8.10% | — |
| K. Shalini | Promoter | 8.66% | — |
| D. Anitha Reddy | Promoter | 4.50% | — |
| C. Usha Reddy | Promoter | 4.50% | — |
| G. Kavitha Reddy | Promoter | 4.50% | — |
| Anushman Reddy | Promoter | 1.00% | — |
| P. Kalpana Reddy | Promoter | 4.39% | — |
| Saranya Loka Reddy | Promoter | 4.61% | — |
| A. Manogna | Promoter | 3.90% | — |
| M. Madhavi | Promoter | 2.90% | — |
| Parvat Srinivas Reddy | Promoter | 6.33% | — |
| P. Leelavathi | Promoter | 8.10% | — |
| K. Shalini | Promoter | 8.66% | — |
| D. Anitha Reddy | Promoter | 4.50% | — |
| C. Usha Reddy | Promoter | 4.50% | — |
| G. Kavitha Reddy | Promoter | 4.50% | — |
| P. Kalpana Reddy | Promoter | 4.39% | — |
| Saranya Loka Reddy | Promoter | 4.61% | — |
| A. Manogna | Promoter | 3.90% | — |
| M. Madhavi | Promoter | 2.90% | — |
| Anushman Reddy | Promoter | 1.00% | — |
| K. Vamshidhar Reddy | Promoter Group | 7.82% | — |
| P. Jayaprakash Reddy | Promoter Group | 4.50% | — |
| Fabmohur Advisors LLP | Promoter Group | 31.28% | — |
| Parvat Srinivas Reddy | Promoter | 6.33% | — |
| P. Leelavathi | Promoter | 8.10% | — |
| K. Shalini | Promoter | 8.66% | — |
| D. Anitha Reddy | Promoter | 4.50% | — |
| C. Usha Reddy | Promoter | 4.50% | — |
| G. Kavitha Reddy | Promoter | 4.50% | — |
| Anushman Reddy | Promoter | 1.00% | — |
| P. Kalpana Reddy | Promoter | 4.39% | — |
| Saranya Loka Reddy | Promoter | 4.61% | — |
| A. Manogna | Promoter | 3.90% | — |
| M. Madhavi | Promoter | 2.90% | — |
| Fabmohur Advisors LLP | Promoter | 31.28% | — |
| Vamshidhar Reddy Kallem | Promoter | 7.82% | — |
| K. Shalini | Promoter | 7.82% | — |
| Parvat Srinivas Reddy | Promoter | 6.33% | — |
| Fabmohur Advisors LLP | Promoter Group | 31.28% | — |
| Vamshidhar Reddy Kallem | Promoter | 7.82% | — |
| K. Shalini | Promoter | 7.82% | — |
| Parvat Srinivas Reddy | Promoter | 6.33% | — |
| Fabmohur Advisors LLP | Investor Selling Shareholder | — | — |
| Solidus Advisors LLP | Investor | — | — |
| P. Leelavathi | Promoter Selling Shareholder | — | — |
| Parvat Srinivas Reddy | Promoter Selling Shareholder | — | — |
| P. Kalpana Reddy | Promoter Selling Shareholder | — | — |
| Saranya Loka Reddy | Promoter Selling Shareholder | — | — |
| C. Usha Reddy | Promoter Selling Shareholder | — | — |
| G. Kavitha Reddy | Promoter Selling Shareholder | — | — |
| D. Anitha Reddy | Promoter Selling Shareholder | — | — |
| K. Shalini | Promoter Selling Shareholder | — | — |
| A. Manogna | Promoter Selling Shareholder | — | — |
| P. Simhadri Reddy | Investor Selling Shareholder | — | — |
Leadership
Parvat Srinivas Reddy · Promoter
P. Leelavathi · Promoter
K. Shalini · Promoter
D. Anitha Reddy · Promoter
C. Usha Reddy · Promoter
G. Kavitha Reddy · Promoter
Anushman Reddy · Promoter
P. Kalpana Reddy · Promoter
Saranya Loka Reddy · Promoter
A. Manogna · Promoter
M. Madhavi · Promoter
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.
MTAR Technologies IPO FAQs
What is the lot size of MTAR Technologies IPO?
The minimum lot size of MTAR Technologies IPO is 26 shares. One lot costs ₹14,950 at the cut-off price.
When does MTAR Technologies IPO open and close?
MTAR Technologies IPO opened for subscription on 03 Mar 2021 and closed on 05 Mar 2021.
What is the listing date of MTAR Technologies IPO?
MTAR Technologies IPO listed on 15 Mar 2021.