Indo-MIM IPO opens amid 40% grey market premium
Indo-MIM is launching a public offering to pare its ₹1,212 crore debt pile, with grey market activity pointing to a 40% debut premium.
Indo-MIM opens its initial public offering for subscription on Thursday, pricing the shares between ₹461 and ₹485. The Bengaluru-based precision engineering firm is raising ₹500 crore through fresh equity alongside an offer for sale worth up to ₹3,312 crore by existing shareholders.
The company commands a 6.8% share of the global metal injection molding (MIM) market, making it the largest manufacturer in the space. It operates 15 facilities across India, the US, the UK and Mexico, supplying over 9,000 components to the automotive, aerospace, defence, and medical sectors.
Investors are pricing in this operational scale and sector diversity. For the financial year 2026, Indo-MIM reported a 26% increase in revenue to ₹4,193 crore, matched by a 26% rise in net profit to ₹533.5 crore.
This momentum has translated into significant grey market premium (GMP). The IPO’s GMP currently sits at ₹194, suggesting a listing price around ₹679, or 40% higher than the upper price band. Over the past five sessions, the premium has fluctuated between ₹168 and ₹213, indicating sustained retail interest.
The company notably pruned the issue size before launch. Management cut the fresh issue in half from ₹1,000 crore to ₹500 crore and reduced the offer for sale from an initial 12.96 crore shares. Indo-MIM plans to use ₹400 crore of the fresh proceeds to repay borrowings.
With total consolidated debt standing at ₹1,212.3 crore as of May 2026, the equity raise represents a deliberate move to strengthen the balance sheet. The conservative primary capital raise limits dilution for existing shareholders while still addressing near-term liabilities.
Under the offer for sale, major stakeholders are taking partial exits. Green Meadows Investments is offloading 6.05 crore shares, while Anuradha Koduri and the Indian Institute of Technology Madras are divesting 54.59 lakh shares and 23.07 lakh shares, respectively.
The offering allocates 50% of the shares to qualified institutional buyers, with 35% reserved for retail investors and 15% for non-institutional investors. HDFC Bank, Axis Capital, ICICI Securities, Kotak Mahindra Capital Company, and SBI Capital Markets are managing the books.
Anchor investor allocations are scheduled for Wednesday. The subscription window closes on Monday, with final share allotment expected on July 28 and trading debuts on the BSE and NSE set for July 30.
