Abstract

During the first week of March 2021, MTAR Technologies Private Limited (MTAR), a leading precision engineering manufacturer in India, announced an Initial Public Offering (IPO). MTAR was popular for its high-profile customer base and was actively involved in mission critical projects of the Indian Space Research Organization (ISRO), Defence Research and Development Organization (DRDO), and Nuclear Power Corporation of India (NPCIL) sponsored by the Government of India. MTAR also offered products for manufacturers in Aerospace and clean energy industries, and had a sustainable customer base in the domestic and global markets. For the company, growth was accompanied by challenges in managing its debt and profitability position. MTAR then opted to go in for an Initial Public Offering (IPO). The IPO was successful and received a positive response from market participants. The present case study can help in discussing– the pros and cons of investing in an IPO, the factors to be analyzed before investing in an IPO, and the factors that drive companies to opt for an IPO.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The pros and cons of investing in an Initial Public Offering (IPO)
• The factors to be analyzed before investing in an IPO
• The objectives of a company in opting for an IPO
• The prospects of MTAR Technologies – growth drivers and risk factors

Keywords

MTAR Technologies; IPO; Precision Engineering; Aerospace; defense; nuclear power; space; clean energy sector; DRDO; DAE; Mangalyaan; Chandrayaan 2; Heavy engineering segment; Light engineering segment