Hyderabad-based MTAR Technologies, a leading player in the precision-engineering industry, will launch its initial public offering (IPO) for subscription on March 3.
This would be the ninth public offer in the current calendar year, after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft, Brookfield India REIT, Nureca, RailTel Corporation of India and Heranba Industries.
The issue of 1,03,72,419 equity shares will close for subscription on March 5, while the anchor book, if any, will open for a day on March 2.
The initial public offering comprises a fresh issue of 21,48,149 equity shares by the company and an offer for sale of 82,24,270 equity shares by promoters and investors.
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The offer includes sales by promoters - 4,50,000 equity shares by P Leelavathi, 3 lakh shares by Parvat Srinivas Reddy, 1,49,970 shares by P Kalpana Reddy, 3 lakh shares by Saranya Loka Reddy, 2 lakh shares by C Usha Reddy, 3 lakh shares by G Kavitha Reddy, 1.25 lakh shares by D Anitha Reddy, 2.25 lakh shares by K Shalini and 3 lakh shares by A Manogna.
Investors Fabmohur Advisors LLP and P Simhadri Reddy will sell 57,84,300 equity shares and 90,000 shares through the offer.
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The company and selling shareholders in consultation with merchant bankers will decide the price band and the minimum bid lot this week.
MTAR Technologies had, in consultation with the book running lead managers, undertaken a pre-IPO placement of 18,51,851 equity shares, aggregating to Rs 100 crore. Consequently, the size of the planned fresh issue of up to 40,00,000 equity shares has now been reduced by 18,51,851 equity shares to 21,48,149 shares.
The company primarily serves customers in the clean energy, nuclear, space and defence sectors. Its clients include ISRO, Rafael, DRDO and NPCIL.
The company will use the proceeds from the fresh issue and pre-IPO placement to repay debts and meet working capital requirements.
JM Financial and IIFL Securities are the book running lead managers to the issue.