Hyderabad-based MTAR Technologies has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The precision engineering solutions company is looking to raise about Rs 650 crore through initial public offer (IPO) according to media reports.
The IPO will comprise of fresh issue of up to 40 lakh shares and an offer for sale (OFS) of up to 82.24 lakh shares from promoters.
MTAR is in the business of manufacturing and development of mission-critical precision components with close tolerances and critical assemblies catering to nuclear, space, defence and clean energy sectors. It currently operates out of 7 manufacturing facilities, including an export-oriented unit located in Hyderabad.
The company is a key partner to Indian Space Research Organization (ISRO), Defense Research and Development Organization (DRDO), Nuclear Power Corporation of India and US-based Bloom Energy Inc besides catering to some other well-known establishments like Bharat Dynamics, Hindustan Aeronautics (HUL).
The net proceeds from the IPO will be used to repay the debt and fund long-term working capital requirements besides attending to general corporate purpose. JM Financial and IIFL Securities are the bankers for the issue.