Millworks Technologies’ Rs 160-crore SME IPO concluded today with a strong 78x subscription. Retail investors led the demand, bidding over 114 times their quota. With a reported grey market premium of Rs 400, investors are anticipating potential listing gains, though final allotments will clarify the actual demand versus supply.
Millworks Technologies’ initial public offering (IPO) on the BSE SME platform closed on July 16, drawing massive interest from investors. By the end of the bidding process, the total subscription reached approximately 78 times the shares offered. The company offered 35.18 lakh equity shares, and the exchange received bids for over 27.29 crore shares, reflecting high investor appetite for the company's precision-machined components and assembly business.
Retail interest was particularly notable, with the retail portion oversubscribed 114.31 times. The non-institutional investor category, which includes high-net-worth individuals, also saw robust participation, with their quota booked 78.08 times. The Rs 160.34-crore IPO, priced between ₹315 and ₹331 per share, is entirely a fresh issue, meaning all money raised goes directly into the company’s accounts rather than to existing shareholders.
Business Model and Capital Usage
Millworks Technologies manufactures critical components for high-growth sectors including aerospace, defense, railways, and semiconductors. The company utilizes two main manufacturing strategies: Build-to-Print, where it follows specific designs provided by customers, and Build-to-Spec, where it creates products based on performance requirements. Financially, the company has a split revenue base with 73 percent coming from domestic sales and 27 percent from exports in FY26. The funds raised will be deployed toward purchasing new plant and machinery to expand production capacity and meeting working capital needs to manage day-to-day operations.
Grey Market Signals and Risks
While the grey market premium (GMP) of Rs 400 suggests a potential listing gain of over 120 percent, investors should exercise caution. GMP is an unofficial indicator of demand and can be volatile, often fluctuating significantly based on market sentiment rather than underlying financial performance. Unlike the mainboard IPOs, SME IPOs typically have higher lot sizes and lower liquidity, which can lead to larger price swings after the shares are listed. The minimum investment for a retail applicant was set at ₹2,64,800, a threshold that necessitates careful consideration of the company’s long-term business prospects beyond the excitement of the initial listing day.
Next Steps for Investors
The company is expected to finalize the share allotment process on July 17. Successful applicants will see shares credited to their demat accounts ahead of the listing, which is tentatively scheduled for July 21 on the BSE SME exchange. Post-listing, investors should track the company’s ability to utilize the new capital effectively, as scaling operations in complex sectors like aerospace and defense involves risks related to project execution timelines and maintaining high quality standards for original equipment manufacturers.