Millworks Technologies surges to circuit on 90% debut premium
Precision engineering firm Millworks Technologies surged 90% on its market debut, underscoring strong investor demand for Indian suppliers to the defence and aerospace sectors.
Millworks Technologies listed on the BSE SME platform on Tuesday at ₹628.90, a 90% premium over its issue price of ₹331. The stock quickly hit its 5% upper circuit limit to reach ₹660.30, contrasting with a broader market decline.
The sharp gain arrived while the benchmark Sensex fell 0.26% to 77,506. However, the debut still missed elevated grey market expectations, where a premium of ₹395 had priced in a listing gain exceeding 119%.
The offering raised ₹160.34 crore through a fresh issue of 48.44 million shares with a face value of ₹10 each. Demand far exceeded supply across all investor categories, pushing the overall subscription to 193 times. Qualified institutional buyers bid 194 times their allotted portion, while retail investors oversubscribed their tranche by 217 times and non-institutional investors by 159 times.
Millworks operates as a precision engineering firm producing machined components, sheet metal parts, and integrated assemblies. Its output serves mission-critical applications across the railways, aerospace, defence, and semiconductor sectors. The overwhelming response to the IPO reflects a broader market thesis: investors are pricing in significant growth for Indian manufacturers capable of serving high-barrier, strategically vital supply chains.
The company's financial metrics for the last financial year show a profitable, expanding business. Revenue from operations reached ₹148.77 crore, while profit stood at ₹37.1 crore. A notable 27.47% of that revenue came from exports, providing geographic diversification across nine countries including the United States, Israel, Germany, France, the United Kingdom, Italy, the Czech Republic, Macedonia, and Canada.
The pricing of the issue, set between ₹315 and ₹331, indicates the company left substantial gains on the table for initial subscribers. Nevertheless, the capital raised is pivotal for its expansion. The funds are earmarked for plant and machinery acquisitions to expand capacity for high-value contracts. Remaining proceeds will address working capital requirements and general corporate purposes.
