Indo-MIM lists at 44% premium, beating grey market forecasts
Precision engineering firm Indo-MIM priced its shares well above expectations on its market debut, reflecting heavy institutional appetite for India's advanced manufacturing sector.
Indo-MIM shares began trading at ₹700 on the National Stock Exchange and ₹703 on the Bombay Stock Exchange, marking a premium of roughly 44% over the ₹485 issue price. This opening surpassed the roughly 38% gain projected by the grey market premium, which had hovered at ₹184 per share ahead of the listing.
The sharp pricing reflected heavy demand during the subscription window. The ₹3,810.31 crore public issue was booked 72.37 times, attracting bids for 3,98,58,76,230 equity shares against 5,50,74,644 shares available. Qualified institutional buyers drove this demand, subscribing their portion 204.47 times, while non-institutional investors bid 50.65 times their allocation.
Capital structure and use of funds
The offering was heavily weighted toward a secondary share sale. Of the total deal size, ₹3,311.21 crore consisted of an offer for sale comprising 6.83 crore shares. The fresh issue component was significantly smaller, raising ₹499.10 crore through 1.03 crore shares. Indo-MIM plans to use ₹400 crore of the net fresh proceeds to repay outstanding borrowings, directing the remaining balance to general corporate purposes.
Growth underpinning the valuation
Founded in 1996, Indo-MIM produces precision components using metal injection molding, investment casting, precision machining, and 3D metal printing. It supplies the automotive, aerospace, defence, medical, and consumer products sectors, manufacturing more than 6,400 distinct products in the last financial year.
The company's recent financial trajectory likely supported the institutional bidding. For the fiscal year 2026, Indo-MIM reported a 28% year-on-year increase in revenue and a 26% rise in profit after tax. This growth aligns with rising demand for specialized engineering components in defense and aerospace supply chains.
Ahead of the public issue opening on July 23, the company secured ₹1,140.99 crore from anchor investors. HDFC Bank acted as the book-running lead manager for the offering, with MUFG Intime India serving as the registrar.
