MTAndT Rentals Limited

About the Company Mtandt Rentals Limited (MRL) is India's largest pure-play Aerial Work Platform (AWP) and ground protection mat rental company by fleet size. Founded in 1974 and headquartered in Chennai, the company was carved out as a standalone rental entity in 2009 through a demerger from Mtandt Limited. MRL runs a capital-intensive, asset-heavy rental model. It acquires high-value equipment, deploys it on rental contracts to industrial and construction customers, and earns recurring rental income based on how heavily that equipment is utilized. Who Runs the Company The board is led by Chairman Rajesh Modi, alongside Executive Directors Gopal Modi and Sangeetha Modi. Kanak Goyal and Kavita Goyal serve as Independent Directors. How the Company Makes Money ? MRL's revenue comes from two roughly balanced streams: renting out equipment, and selling off older fleet assets. In FY25, rental service brought in a little more than half the total, with equipment sales making up the rest. 1) Rental Service Revenue (53.64%) 2) Sales Revenue (46.36%) Product Portfolio MRL's fleet centers on Aerial Work Platforms (AWPs), which generate the bulk of both rental and sales revenue, followed by Ground protection mats (branded PortaDeck) as a large second category, and other lifting equipment. Aerial Work Platforms — Scissor Lift, Boom Lift, Spider Lift: 1,236 units, OEC ₹285.60 Cr., Rental Rev. ₹80.80 Cr., Sales Rev. ₹87.50 Cr. Ground Protection Mats — PortaDeck (Heavy-duty Composite): 3,381 units, OEC ₹48.70 Cr., Rental Rev. ₹23.80 Cr. Other Equipment — Personnel Lift, Mast Boom, Cranes, Hoists: 151 units, OEC ₹34.80 Cr., Rental Rev. ₹9.50 Cr., Sales Rev. ₹11.10 Cr. Services — AWP Training, Equipment AMC, Operator Supply. Within the AWP fleet, the breakdown is 416 Boom Lifts, 765 Scissor Lifts, and 55 Spider Lifts, alongside 3,381 protection mats. Clientele MRL serves over 1,000 customers across industries, with top rental clients including L&T, Tata Projects, and Shapoorji Pallonji (EPC/construction); JSW Renewable Energy, ReNew Power, and Adani Green Energy (renewables); Suzlon Global Services (wind); Power Grid Corporation of India (transmission); and Blue Star and Taichuang Engineering (industrial/MEP). By vertical, the base splits across industrial and other sectors (49%), non-residential construction (46%), and residential (5%) — a diversified spread that limits dependence on any single end market. Industry Outlook The tailwinds behind MRL are substantial: India's AWP market is projected to reach USD 2.28 billion by 2033, growing at a 16.2% CAGR from 2026 The broader construction equipment rental market is expected to hit USD 29.50 billion by 2034 at a 7.52% CAGR Key growth drivers: the National Infrastructure Pipeline, PM Gati Shakti, and demand from logistics, warehousing, and renewable energy Scissor lifts currently lead the AWP market, accounting for more than half of segment revenue MT and T Rentals CCPS Issue — Terms and Conversion Mechanism Overview Mtandt Rentals Limited has issued Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs. 459 per share. The pricing is based on a Discounted Cash Flow valuation carried out by a Registered Valuer. Tenure and Conversion Timeline Each CCPS shall be compulsorily converted into equity shares of the Company within a period not exceeding 18 (eighteen) months from the date of allotment, or at an earlier date as may be determined by the Board of Directors. The CCPS are non-redeemable and will mandatorily convert as per the terms set out below. They carry a non-cumulative dividend not exceeding 0.001% p.a., subject to availability of distributable profits. Issue Price Calculation Particulars Amount Equity valuation (DCF by Registered Valuer) Rs. 700 crore Projected PAT for FY 2025–26 Rs. 70 crore Valuation multiple 10x Pre-money equity shares 1,52,62,786 Derived price per share Rs. 458.63 Issue price (rounded) Rs. 459 Rs. 700 crore ÷ 1,52,62,786 shares = Rs. 458.63 per share Conversion Ratio Formula Conversion Ratio = Rs. 700 crore ÷ (Actual Audited PAT for FY 2025–26 × 10) Equity shares received on conversion = Number of CCPS held × Conversion Ratio The conversion ratio is recalculated using the Company's actual audited PAT for FY 2025–26, so that the implied pre-money valuation always reflects a 10x PAT multiple. Illustration (based on 1,000 CCPS held) Scenario Audited PAT Equity Valuation (10x) Conversion Ratio Equity Shares Received Base case Rs. 70 crore Rs. 700 crore 700 ÷ 700 = 1.000 1,000 Case A – Lower PAT Rs. 60 crore Rs. 600 crore 700 ÷ 600 = 1.167 1,167 Case B – Higher PAT Rs. 80 crore Rs. 800 crore 700 ÷ 800 = 0.875 875 Effective Price Per Share Scenario Amount invested (1,000 CCPS × Rs. 459) Shares received Effective price per share Case A Rs. 4,59,000 1,167 Rs. 393 Case B Rs. 4,59,000 875 Rs. 525 In both cases the effective valuation lands exactly at 10x actual PAT — Rs. 600 crore and Rs. 800 crore respectively. That is the mechanism working as intended. Rounding of Fractional Shares Fractional part of 0.6 or more — rounded up to the next whole number Fractional part of 0.5 or less — rounded down to the nearest whole number Ranking of Equity Shares Upon conversion, the equity shares shall rank pari passu with the existing equity shares in all respects, including dividend entitlement, voting rights, and all other rights and obligations.