Millworks Technologies IPO draws 2.2x demand on day one
Precision engineering firm Millworks Technologies saw its BSE SME IPO heavily oversubscribed by retail and non-institutional investors on its opening day, driven by strong earnings and exposure to India's defence and aerospace sectors.
Millworks Technologies opened its initial public offering on Tuesday, attracting immediate interest from non-institutional and retail investors. By mid-morning on the first day of bidding, the precision engineering firm’s BSE SME issue was booked 2.2 times overall. The retail and non-institutional investor portions were each subscribed three times, though qualified institutional buyers had yet to place bids.
The strong debut demand is mirrored in the grey market, where unlisted shares traded at a premium of ₹300 over the upper price band. This indicates an expected listing gain of roughly 91%, although that premium has cooled from Monday’s levels which implied a 119% pop. Ahead of the public issue, the company secured ₹43.86 crore from four anchor investors at the top end of the ₹315 to ₹331 price band.
Defence and aerospace exposure drives demand
Investor appetite appears rooted in the company’s recent financial performance and its position in high-barrier industrial sectors. Millworks manufactures machined components, sheet metal parts, and integrated assemblies for mission-critical applications in the railways, aerospace, defence, and semiconductor industries. For the financial year ending in March, the company posted revenue of ₹148.77 crore and a profit of ₹37.1 crore. Furthermore, 27.47% of that revenue came from exports to nine countries including the US, Germany, and Israel.
The offering is structured as a purely fresh issue of 4.84 million shares, meaning existing shareholders are not diluting their stakes through an offer for sale. Millworks intends to use the capital to fund new plant and machinery, support working capital needs, and cover general corporate expenses. The minimum investment threshold for retail participants is set high at 800 shares, requiring an outlay of ₹264,800 at the upper price band.
GYR Capital Advisors is managing the offer. The subscription window for the IPO closes on Thursday, 16 July. Share allotment is scheduled for Friday, with listing expected on the BSE SME platform on Tuesday, 21 July.
