Thursday, November 8, 2007

Blackstone to invest $65 mn in MTAR

The Hyderabad-based MTAR, a privately-held company promoted by P Ravindra Reddy, Satyanarayana Reddy and P Jayaprakash Reddy,has sold 26% stake to Blackstone for about $65 million, which is in one of the first PE deals in the defence and nuclear science space.MTAR Technologies makes critical components and products used for nuclear and space projects.

The funding is through a mix of additional issue of shares and equity sale by the promoters. MTAR will continue to be led by the founders, who will hold 74% cumulatively. After the deal, Blackstone will have three representatives on the 12-member board of the company.

Currently, the company has an order book of Rs 250 crore executable over two years. While MTAR’s revenues are undisclosed, the management is aiming to raise it four to five times by 2010.

Read more in The Economic Times article.

Related Post:
Blackstone eyes 30% in nuclear tech firm MTAR

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