Millworks Technologies IPO draws 220x demand ahead of listing

Millworks Technologies finalised the share allotment for its initial public offering on July 17, capping off a subscription window that saw the issue oversubscribed 219.54 times. The Indian precision engineering firm priced its shares at the top of its range at ₹331. The stock is scheduled to make its market debut on the BSE and NSE on July 21.

The sheer volume of demand underscores the current appetite for Indian industrial SMEs. Investors submitted bids for 67.94 crore shares against just 30.94 lakh shares on offer. Non-institutional investors led the frenzy with a 260.37 times subscription, while the retail category was booked 216.60 times. Qualified institutional buyers submitted bids 194.05 times their allocated portion.

This extraordinary demand is reflected in the unlisted market. Millworks shares are commanding a grey market premium of ₹380, indicating an expected listing price around ₹711 per share. This represents a 114.8% premium over the IPO price. For secondary market investors, the premium suggests a highly optimistic valuation for the business, though it also implies significant volatility when trading commences.

The IPO is entirely a fresh issue of 0.48 crore equity shares, raising ₹160.34 crore without any offer-for-sale component. This structure means all capital raised goes directly to the company. Millworks outlined in its prospectus that the proceeds will fund the purchase of new plant and machinery, bolster working capital, and support general corporate purposes.

Under the allocation framework, qualified institutional buyers and anchor investors received 45.61% of the issue. Retail investors were allotted 31.94%, requiring a minimum investment of ₹264,800 for two lots of 800 shares at the upper price band. Non-institutional investors received the remaining 13.70%. Prior to the public window, the company raised ₹43.86 crore from four anchor investors.

Millworks produces machined components, sheet metal parts, and integrated assemblies for mission-critical applications. Its client base spans the railways, aerospace, defence, and semiconductor sectors. For the financial year ended in March 2026, the company reported revenue of ₹148.77 crore and a profit of ₹37.1 crore. Export sales to nine countries, including the US, Germany, and Israel, accounted for over 27% of total revenue.