MTAR IPO Open Today: MTAR Technology has launched its IPO on 3 March. This IPO will be open for investment from March 3 to 5. The company plans to raise Rs 596 crore from this IPO. The price band for this IPO has been kept at Rs 574-575 and the face value is Rs 10 per equity share. The IPO’s lot size is 26 shares, that is, it is necessary to invest at least Rs 14950. Under the IPO, there will be a fresh issue of Rs 123.52 crore and an offer for sale of Rs 472.90 crore. Given the boom in the IPO market, if you also want to invest in it, then it is important to know a few things first.
What does the company do?
MTAR Technology has been serving in the field of Defense, Aerospace and Energy sector since last 4 decades. The client list includes names like ISRO, NPCIL, DRDO, Bloom Energy, Rafael. MTAR Tech recently raised Rs 100 crore from SBI Mutual Funds and Axis Mutual Funds at a price of Rs 540 per share through pre IPO placements. With this, the valuation of the company has increased to Rs 1660 crore. The order book of the company is also very strong. The debt on the company is also very low.
What do experts say on investment?
Nirali Shah, Equity Research Head, Samco Securities Says that MTAR technology will use the proceeds from the IPO to reduce debt. At the same time, funds will also be used for working capital requirements. MTAR Technology is the leading service provider in the field of Defense, Aerospace and Energy sector. The client list includes names like ISRO, NPCIL, DRDO, Bloom Energy, Rafael. The government has a focus on the manufacturing sector with Make in India. MTAR’s revenue and profits grew by 15.7% and 140.3% CAGR from FY18 to FY20. The company’s financial record is better. Talking about the risk side, 49% of the company’s revenue comes from the major 3 clients. Listing in IPO can cost money for gain.
Brokerage House LKP Research Has also advised subscribing to MTAR technology. The brokerage says that the company’s order book is strong and profits are better than Pierce companies. The company has shown a growth of 16.5 per cent CAGR in the last 3 years. The EBITDA margin is 28.5 per cent in FY 2020. Good growth is expected in the future as well. Brokerage House Geojit Financial Services Has also suggested subscribing to the IPO.
(Note: We have given information here on the basis of expert and brokerage house report. There are risks in the stock market, so consult experts at your level before investing.)