MTAR Tech: Former Blackstone India head makes multifold gains in MTAR Technologies
Mathew Cyriac who bought 33.11% stake in the company through his firms — Fabmohur Advisors LLP and Solidus Advisors — in 2017 from Blackstone India for Rs 39 per share. His firms sold two-third of its stake at Rs 575 per share through IPO. Mathew Cyriac would receive over Rs 335 crore in the offer for sale. His firms will continue to own over 10% of the company post the IPO.
Since the investment by Mathew, the company, engaged in the manufacturing and development of mission critical precision components and critical assemblies catering to clean energy, nuclear and space and defense sectors has seen significant transformation from being a loss-making business in FY 2017 to a highly profitable one currently.
Over FY 2018-20, MTAR’s revenues grew at a compounded annual growth rate (CAGR) of 16% while its adjusted net profit jumped 140%. Gross margin continues to remain at 65-67% range over the last three years.
Cyriac quit Blackstone India in 2017 to start his own investment outfit after spending more than a decade at the world’s largest private equity firm.
The MTAR IPO also created yet another record with a high networth individual portion getting bids 650 times more than shares on offer. The Rs 600 crore IPO has attracted about Rs 84,000 crores worth of application.
The qualified institutional buyers (QIB) portion saw a bid almost 165 times while the retail portion got subscribed over 28 times.
The previous best record was from Mrs Bectors IPO which was subscribed 199 times with HNI portion seeing 620 times more demand than shares on offer. Some of the last year IPOs like Mazagon Dock, Burger King, Happiest Mind and Chemcon Speciality Chemicals were subscribed more than 150 times.
The IPO which consists of a fresh issue of shares worth Rs 124 crore and an offer for sale of Rs 473 crore worth of shares, is being sold in the Rs 574-575 price band.
Last month, SBI Mutual Fund and Axis Mutual Fund had invested Rs 70 crore and Rs 30 crore respectively in a pre-IPO round. The company’s anchor book saw bidding of over Rs 3,500 crores from 35 institutional investors against a book size of Rs 179 crore. The company allocated an anchor book to a set of 15 institutional investors, which included four foreign portfolio investors, ten mutual funds and one insurance company.
