India's defence, aerospace, and semiconductor supply chains have been growing rapidly, and the engineering manufacturers that sit within them are increasingly finding their way to the public markets. Millworks Technologies Limited, a Bengaluru-based precision engineering and machined components manufacturer, is the latest to test investor appetite — opening its BSE SME IPO for subscription on July 14, 2026.
Millworks Technologies Details
|
Detail |
Information |
|
IPO Open Date |
July 14, 2026 |
|
IPO Close Date |
July 16, 2026 |
|
Price Band |
₹315 – ₹331 per share |
|
Face Value |
₹10 per equity share |
|
Issue Size |
Approximately ₹160.34 crores |
|
Issue Type |
Fresh Issue (Book Building) |
|
Listing Exchange |
BSE SME |
|
Allotment Date |
July 17, 2026 |
|
Refund / Demat Credit |
July 20, 2026 |
|
Listing Date |
July 21, 2026 |
|
Cut-off Time |
July 16, 2026, 5:00 PM |
|
Lead Manager |
GYR Capital Advisors Pvt. Ltd. |
|
Registrar |
Purva Sharegistry (India) Pvt. Ltd. |
About Millworks Technologies: What the Company Does
Founded and headquartered in Peenya Industrial Area, Bengaluru, Karnataka, Millworks Technologies Limited is a precision engineering company that designs and manufactures high-accuracy machined components, sheet metal parts, and integrated assemblies for customers in the railways, aerospace, defence, and semiconductor industries.
The company's manufacturing model operates on two primary frameworks. The first is Build-to-Print, where Millworks manufactures components directly from customer-supplied design drawings. The second is Build-to-Spec, where the company works from customer specifications and manages the complete manufacturing process end-to-end. This dual capability positions Millworks as a partner that can serve both customers who have mature, ready-to-manufacture designs and those who need manufacturing expertise applied to specifications.
The company operates four advanced manufacturing facilities in Bengaluru, equipped with a comprehensive range of CNC machining centres (3-axis, 4-axis, and 5-axis), CNC turning and turn-mill centres, wire EDM machines, fibre laser cutting systems, CNC press brakes, welding stations, and dedicated assembly lines — making each facility a substantially integrated production unit rather than a single-process shop.
What the IPO Money Will Be Used For
This is a 100% fresh issue, with the entire ₹160.34 crores directed into the company.
|
Purpose |
Amount (₹ Crores) |
|
Funding capital expenditure for plant and machinery |
₹61.03 |
|
Funding working capital requirements |
₹87.00 |
|
General corporate purposes |
Balance |
The allocation is straightforward and operationally grounded. The capex spend on plant and machinery (₹61.03 crores) directly supports capacity expansion, while the working capital allocation (₹87.00 crores) — the largest single component — reflects the reality of precision manufacturing businesses that work on longer production cycles and often have extended payment timelines from large industrial customers in railways, defence, and aerospace.
Market Lot and Application Amounts
The minimum retail application of ₹2,64,800 is in line with recent SME IPO norms, with retail investors capped at 2 lots.
IPO Reservation
|
Investor Category |
% of Issue |
|
QIB (excluding Anchor) |
50% |
|
NII (HNI) |
15% |
|
Retail |
35% |
Anchor investor details — including shares offered, anchor size, and lock-in dates — are yet to be disclosed as of the time of writing. These will be updated on the anchor bidding date ahead of the IPO opening.
Promoter Background and Holding Pattern
The promoters of Millworks Technologies are Mr. Sridhar Acharya, Mr. H K Madhu, Ms. Sowmya Madhu, and Ms. Rashmi Sridhar Acharya.
|
Particulars |
Shares |
% Holding |
|
Promoter Holding Pre-Issue |
1,27,70,755 |
65.08% |
|
Promoter Holding Post-Issue |
1,76,14,755 |
To be disclosed |
The pre-issue promoter holding of 65.08% is meaningfully lower than many SME IPOs we've covered recently — suggesting the company may have had earlier external investors or has a more distributed existing ownership structure. Post-issue promoter percentage was not disclosed in the offer document data available at the time of writing.
Financial Performance: Exceptional Growth, Exceptional Scrutiny Required
(All figures in ₹ crores)
|
Period |
Revenue |
Expenses |
PAT |
Assets |
|
FY2023 |
₹1.78 |
₹1.38 |
₹0.33 |
₹3.79 |
|
FY2024 |
₹9.40 |
₹7.02 |
₹1.95 |
₹10.64 |
|
FY2025 |
₹22.42 |
₹15.33 |
₹5.25 |
₹40.84 |
|
8M FY2026 (Apr–Nov 2025) |
₹68.02 |
₹40.39 |
₹20.50 |
₹1,15,83 |
The growth trajectory here is extraordinary by any measure. Revenue has gone from ₹1.78 crores in FY23 to ₹22.42 crores in FY25 — a roughly 12x increase in two years. Then, in the first eight months of FY26 alone, the company has reported ₹68.02 crores in revenue and ₹20.50 crores in PAT — already more than three times the full FY25 figures on both counts.
Key Valuation Metrics (FY2025)
|
KPI |
Value |
|
Return on Equity (ROE) |
40.96% |
|
Return on Capital Employed (ROCE) |
23.03% |
|
EBITDA Margin |
35.20% |
|
PAT Margin |
23.77% |
|
Debt to Equity Ratio |
0.41 |
|
Earnings Per Share (EPS — Basic) |
₹5.04 |
|
Price/Earnings (P/E) Ratio |
N/A |
|
Return on Net Worth (RoNW) |
22.53% |
|
Net Asset Value (NAV) |
₹19.85 per share |
The EBITDA margin of 35.20% and PAT margin of 23.77% — both on FY25 numbers — are exceptionally strong for a manufacturing company, pointing to a high-value-add, precision-focused product mix rather than commodity manufacturing. At the upper price band of ₹331, the issue is priced at approximately 16.7x its FY25 book value (NAV of ₹19.85), which is a steep P/BV multiple even for a high-growth company.
The low debt-to-equity ratio of 0.41 is a genuine positive, indicating the business has been built without excessive leverage — and provides headroom for the additional borrowing capacity that may be needed to complement the capex plans funded by this IPO.
Peer Comparison
|
Company |
EPS (₹) |
P/E |
RoNW % |
NAV (₹) |
Income |
|
Unimech Aerospace and Manufacturing Ltd |
17.59 |
53.27x |
12.48% |
131.53 |
₹267.69 Cr |
|
Azad Engineering Ltd |
14.66 |
107.71x |
6.21% |
215.82 |
₹467.95 Cr |
Both listed peers operate in the precision aerospace and engineering space and trade at notably elevated valuations — Azad Engineering at 107.71x P/E and Unimech at 53.27x. Millworks Technologies' own P/E is marked N/A in the offer document. However, the company's RoNW of 22.53% significantly outpaces both listed peers (Unimech at 12.48% and Azad at 6.21%), suggesting superior capital efficiency at this stage of growth. The income scale of both peers (₹267–467 crores) remains significantly larger than Millworks' current revenue base — though at the current FY26 run rate, the gap is narrowing fast.
Strengths Worth Noting
The business is positioned in four sectors — railways, aerospace, defence, and semiconductors — that are all beneficiaries of sustained government policy support and significant capital expenditure programmes. India's defence indigenisation push, production-linked incentive schemes for electronics and semiconductors, and railway modernisation investments provide a structurally tailwinded demand backdrop for what Millworks does.
The company's four integrated facilities in Bengaluru, equipped with 5-axis CNC machining and EDM capabilities, place it at the precision end of the manufacturing spectrum — where margins are structurally higher and switching costs for customers are meaningfully greater than in commodity metal fabrication.
The EBITDA margin of 35.20% is at the high end of the precision engineering peer universe, and the low debt-to-equity of 0.41 means the balance sheet is entering its growth phase from a position of financial health rather than stress.
Risks to Consider Before Applying
The most important risk is the pace and sustainability of recent revenue growth. Going from ₹1.78 crores in FY23 to ₹68 crores in 8 months of FY26 is exceptional, but it demands scrutiny — investors should investigate the order book, customer concentration, and whether recent growth reflects contract wins that are recurring or large one-time project revenues.
At a P/BV of approximately 16.7x on FY25 NAV, and with P/E marked N/A, direct valuation benchmarking is difficult. The premium is high by absolute standards, even accounting for the growth profile.
The single-city manufacturing concentration — all four plants in Bengaluru — adds operational concentration risk if labour, logistics, or regulatory issues arise locally.
The minimum retail application of ₹2,64,800 is a high ticket size for an SME issue, limiting accessibility for smaller retail investors and concentrating participation among higher net worth applicants.
Finally, as with all SME IPOs, post-listing liquidity on BSE SME tends to be thinner than mainboard listings, which can affect the ease of exit for investors who need to sell post-listing.
How To Apply for the IPO ?
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