Millworks Tech set to list at 120% premium after 219x IPO demand

Millworks Technologies will begin trading on Tuesday after its initial public offering attracted bids worth nearly 62.68 crore shares. The Bengaluru-based precision engineering company sold up to 48.44 lakh equity shares at a price band of Rs 315 to Rs 331.

Unofficial grey market trading indicates the shares could list at roughly Rs 726, a 120% premium over the IPO's upper price band. While this Rs 395 premium is not a guaranteed indicator of opening trades, it underscores the aggressive optimism surrounding the offering.

The issue was subscribed more than 219 times overall, ranking among the most heavily sought-after SME listings in India in recent months. Non-Institutional Investors led the demand with subscriptions exceeding 260 times their allocated quota. Retail investors bid over 216 times their portion, while Qualified Institutional Buyers submitted bids worth more than 194 times their allocation.

Millworks manufactures high-precision components, sheet metal parts, and integrated assemblies under Build-to-Print and Build-to-Spec models. Its client base spans the aerospace, defence, railways, and semiconductor industries. These sectors demand exceptional reliability and represent high-barrier markets where Indian manufacturers are increasingly capturing orders from global suppliers.

The company's financial profile provides a concrete foundation for the valuation excitement. For FY26, Millworks reported revenue of Rs 148.77 crore, with EBITDA reaching Rs 56.30 crore. Profit after tax stood at Rs 37.06 crore, highlighting strong operating leverage in its niche.

Proceeds from the offering are earmarked for capital expenditure, primarily the acquisition of new plant and machinery, alongside working capital requirements. This capacity expansion is critical as the company attempts to scale its output. The investments are designed to help Millworks meet stringent Original Equipment Manufacturer specifications within India's expanding industrial and defence ecosystem.

The debut will test whether actual market trading can sustain the extraordinary demand seen during the subscription period. For broader markets, the listing serves as a fresh gauge of institutional and retail risk appetite for Indian SMEs operating in strategic manufacturing supply chains. The company now faces the challenge of translating this initial euphoria into sustained market performance.