MTAR Technologies Limited IPO details

MTAR Technologies IPO

MTAR Technologies Limited (MTAR) is a leading precision engineering solutions company engaged in manufacturing precision components. The company serves customers in clean energy, nuclear, space and defence sectors. Its initial public offer (IPO) opens up for subscription on March 3rd, 2021.

The company contributes to the Indian civilian nuclear power programme, Indian space programme, Indian Defence and Aerospace sector. It also contributes to the global clean energy sector and the global defence and aerospace sector as well.

MTAR Technologies works with esteemed set of clients

As one of the vital customer sectors, there is immense focus on clean energy. MTAR is engaged in the manufacture of power units, especially hot boxes, and in developing and manufacturing hydrogen boxes and electrolyzes for Bloom Energy Inc. in the United States. The Clean energy sector contributes to a significant portion of company revenues.

In the nuclear sector, the company is working with the Nuclear Power Corporation of India Ltd. (NPCIL). The association has been for over 16 years.

Indian Space Research Organization (ISRO) and the Defence Research and Development Organization (DRDO) have been the primary customers in the space and defence sector. The company has a long-standing relationship for over three-four decades with these esteemed organizations.

Manufacturing units

MTAR Technologies operate through seven manufacturing facilities, including an export-oriented unit (EOU). These manufacturing units are in Hyderabad, Telangana. The facilities employ advanced equipment to undertake precision machining, assembly, testing and quality control, specialized fabrication, brazing and heat treatment, and other technical processes.

Revenue split

Business segment 2019 2020
Clean energy 61.4% 64.3%
Nuclear 13.1% 14.3%
Space & Defence 20.0% 18.4%

Competitive landscape in the precision engineering industry

Below is the comparison of the precision engineering and components industry across sectors. These companies work across sectors like automotive components, defence, aerospace, and space.

MTAR Competitive landscape

About the Promoters of MTAR Technologies

Late P. Ravinder Reddy, Late K. Satyanarayana Reddy and P. Jayaprakash Reddy initially promoted the company. Today, one of the promotors, and our Managing Director Parvat Srinivas Reddy, who has close to three decades of experience, lead the company.

Key strengths:

  1. MTAR began operations as a partnership firm in 1970; therefore, it possesses significant experience
  2. Long-standing relationship with an esteemed set of clients
  3. Wide breadth of product portfolio
  4. Seven manufacturing plants
  5. Highly experienced management team

Financial Profile

Please see below the condensed financial information.

Amount in Rs Cr excluding per share dataMTAR - Condensed Financial information

  • Healthy revenues and healthy margins
  • Decent return on net worth
  • No listed companies in a similar business in India, and therefore peer comparison is not possible

Offer proceeds of the IPO

Particulars Amount
Fresh issue of 21,48,149 equity shares Rs 123 Cr
Offer for sale of 82,24,270 eq. shares Rs 473 Cr
Gross issue size Rs 596 Cr

 Utilization of the offer proceeds:

  • Repayment or prepayment in full/part of borrowings availed by the company
  • Funding working capital requirements
  • General corporate expenses

MTAR Technologies IPO factsheet

MTAR IPO factsheet

Conclusion thoughts for IPO of MTAR Technologies:

  • The precision engineering sector is critical for growing industries like nuclear, defence and space, and hence the demand is poised to grow
  • MTAR currently offers three kinds of products in the clean energy sector, 14 types of products in the nuclear industry, and six products in space and defence sectors. The company intends to enhance capabilities and grow value chain to supply critical and differentiated engineered products
  • Upward trend in the nuclear sector in India, increase indigenization and policy initiatives in the defence sector, and commercialization of the Indian space sector work in favour of the company
  • Long-standing working relationship with an esteemed set of clients is a strength area
  • Company earns about 55-60% of revenues from customers located out of India and further intends to enhance its international operations
  • Healthy order book of Rs 336 Cr


The information provided in the red herring prospectus filed by the company with the Securities and Exchange Board of India ( is the basis for this note. However, I recommend that the reader validate the data before making any financial decision. Also, investment in an initial public offering (IPO) is subject to market risks. It should be evaluated, keeping your risk profile and investment objective in mind. The author will not be responsible for any financial loss or otherwise resulting from any action taken based on the above.

The author is a senior finance professional with over fifteen years of work experience in corporate finance and has an affinity for personal finance and investment management. Please leave your comment or share thoughts on this article via email at For more articles, please visit the website


The author has used his knowledge, experience, and understanding of the subject to write this article. Any views, opinions, and thoughts mentioned in the article belong solely to the author and not necessarily to the author’s employer (past or current), organization, committee, or other group or individual.

Under no circumstances shall the author be liable for any views or analysis expressed in this note. Further, the opinions expressed are not binding on any authority or Court. We advise readers to consult their financial advisor for assistance in their specific case.

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