Millworks Technologies will open its Rs 160.34 crore SME IPO on July 14, with a price band set at Rs 315-331 per share. The company, which supplies precision components for aerospace and rail, reported a net profit of Rs 37.1 crore for FY26. Investors should note that while grey market premiums reflect strong initial interest, SME stocks often experience high volatility and lower liquidity compared to mainboard listings.
Millworks Technologies is set to launch its initial public offering (IPO) for retail and institutional investors on July 14, 2026. The Bengaluru-based manufacturer of high-precision machined components aims to raise Rs 160.34 crore through this SME (Small and Medium Enterprise) public issue. The subscription window will remain open until July 16, 2026.
Pricing and Offering Structure
The company has fixed a price band of Rs 315 to Rs 331 per equity share. Prospective investors are required to bid in lots of 400 shares, meaning the minimum investment per application will be Rs 132,400 at the upper end of the price band. The proceeds from this issue are primarily earmarked for capital spending and operational needs. Specifically, the company intends to use Rs 61.03 crore to acquire new plant and machinery, while Rs 81.5 crore will be directed toward meeting working capital requirements. The remaining funds are allocated for general corporate purposes.
Financial Performance and Business Profile
Millworks Technologies operates in the specialized engineering space, serving industries such as aerospace, rail transport, and instrumentation. The company’s financial statements for the fiscal year ending March 2026 indicate a period of rapid scaling. Net profit for FY26 reached Rs 37.1 crore, a significant increase from the Rs 5.2 crore reported in the previous fiscal year. Revenue also saw substantial growth, rising to Rs 148.8 crore in FY26 compared to Rs 22.1 crore in the prior year. Domestic operations currently drive the majority of the company's income, representing 73 percent of total revenue, while exports contribute 27 percent.
Understanding SME IPO Risks
While market interest for this issue has been high, investors should be aware of the specific characteristics of SME IPOs. Unlike mainboard companies, SME stocks often trade with lower volumes, which can lead to higher price volatility and difficulty in buying or selling large quantities of shares. Furthermore, grey market premiums—often cited as indicators of listing-day gains—are unofficial estimates and do not guarantee future stock performance. Potential investors should carefully review the company's Red Herring Prospectus (RHP) to understand the concentration of its client base and the risks associated with the high capital intensity of the aerospace and rail sectors. Tracking the post-listing liquidity and the company’s ability to maintain its margin levels as it scales up its new capacity will be important for long-term monitoring.