Millworks Technologies' SME IPO has reached a 17.17x subscription level by its second day, driven heavily by retail interest. The Rs 160.34-crore offering, which closes on July 16, aims to fund machinery expansion and working capital. Investors are currently weighing the company's recent surge in annual profit against the risks associated with its reliance on capital-intensive manufacturing contracts.
Millworks Technologies' SME initial public offering (IPO) has seen strong demand, with the issue being subscribed 17.17 times by mid-morning on July 15. The offering, which opened for bids on July 14, has attracted significant interest from retail investors, who have subscribed 29.31 times their allotted portion. Non-institutional investors have also shown active participation, with their quota booked approximately 14 times. The company is offering 35,18,800 shares to the public, with total bids received for over 6 crore shares.
The company has set a price band of Rs 315 to Rs 331 per equity share for this Rs 160.34-crore IPO. The offering consists entirely of a fresh issue of 48.44 lakh shares, with no offer-for-sale component. The funds raised are intended to support the company’s capital spending plans, with Rs 61.03 crore earmarked for the purchase of plant and machinery, and Rs 81.50 crore designated for working capital requirements to manage its growing operational needs.
Financial Growth and Business Model
Millworks Technologies, which focuses on manufacturing precision-machined components and integrated assemblies for sectors like defense, aerospace, railways, and semiconductors, has reported a sharp increase in its financial metrics for the fiscal year 2026. The company’s net profit grew to Rs 37.1 crore, up from Rs 5.2 crore in the previous year, while total revenue climbed to Rs 148.8 crore from Rs 22.1 crore. This expansion has been supported by both domestic and export markets, with domestic sales representing 73 percent of the company's total revenue.
While the company operates in high-growth segments like drones and semiconductor manufacturing, investors should remain aware of the risks inherent in its build-to-print and build-to-spec business models. These models often involve heavy reliance on original equipment manufacturer (OEM) demand, and the company’s ability to maintain its profit margins will depend on its success in executing large-scale orders within tight timelines and managing raw material price fluctuations.
Investor Considerations
Investors tracking this IPO should note that while grey market sentiment often reflects high anticipation, it does not guarantee listing performance or future stock stability. The primary focus for the company following the IPO will be the timely installation of new machinery and the effective use of working capital to maintain the growth momentum seen in FY26. The issue remains open for subscription until July 16, with shares expected to be listed on the BSE SME platform on July 21. Future updates will depend on the final subscription numbers, the share allotment process, and the company’s ability to meet its stated capital spending and delivery targets.