ICRA has upgraded ratings on bank facilities of
MTAR Technologies Limited.
Long term bank facilities has been upgraded at [ICRA]A- with Positive outlook and short term bank facilities has been upgraded at [ICRA]A2+.
MTAR Technologies(MTL) has recently concluded its initial public offering of Rs. 596.41 crore, which comprised Rs. 123.51 crore of fresh issue and the balance offer for sale (OFS).
The rating upgrade considers the above equity infusion, along with the company’s repayment of its outstanding working capital borrowings, which will improve the capital structure and debt coverage metrics.
The ratings continue to draw comfort from the extensive experience of the promoters and the company’s track record in precision engineering industry, which caters to various segments including power, nuclear, space and defence.
The positive outlook on the [ICRA]A-/[ICRA]A2+ ratings reflects ICRA’s expectations that the company’s operational and financial profile will continue to improve backed by its expanding order book position and scale, and it will maintain healthy profit margins as it is the key supplier for many of the products manufactured by it.
At around 10:40 AM, MTAR Technologies was trading at Rs948.90 per piece higher by Rs7.60 or 0.81% on Sensex.