The pre-IPO has been priced at Rs 540 per share, which implies a post-money valuation of the company at Rs 1,660 crore. The company is in the process of raising approximately Rs 700 crore through the initial public offering (IPO), which is expected to open early next month.
The IPO is a mix of fresh issuance of 40 lakh shares and an Offer for Sale of about 82 lakh shares from promoters and Investor Selling Shareholders.
and IIFL Securities are appointed as the book runners to the issue.
The company is backed by Mathew Cyriac, the former India private equity co-head of Blackstone. Cyriac holds a 33% stake which he had acquired from Blackstone Group. Cyriac holds a stake in MTAR through Mumbai-based Fabmohur Advisors. Other equity partners in Fabmohur include Star and Disney India chief K Madhavan and former Citi banker P Simhadri Reddy.
The net proceeds from the fresh issue will be used to repay the debt and fund long-term working capital requirements.
Hyderabad based MTAR was incorporated as a partnership firm in 1970 and has now grown to 7 manufacturing units based out of Hyderabad. MTAR serves customers in the nuclear, space, defence and clean energy sectors and has a long standing relationship with leading players in these spaces such as NPCIL, ISRO, DRDO, Bloom Energy etc.
The revenue and EBITDA of MTAR have grown at 16.8% and 34.8% CAGR over FY18-20 period. The company has an order book of over Rs 350 crore as at the end of November, 2020.
Besides the plan to expand its product portfolio in the existing segments and enter new business segments, the company is also expanding its manufacturing footprint with a greenfield expansion project at Adibatla in Hyderabad, which will allow company to undertake highly specialized sheet metal and fabrication jobs for ISRO, Bloom Energy and other domestic and multinational customers.
