Millworks IPO Commands 90% Grey Market Premium as Precision Manufacturing Powerhouse Prepares Listing
Bengaluru-based Millworks Technologies is generating significant buzz ahead of its Initial Public Offering (IPO). The company's shares are currently trading at a substantial grey market premium of 84-90 percent, signaling strong investor confidence in the specialized manufacturing sector. This sentiment builds as the firm prepares to launch its Rs 160.3 crore IPO on July 14, with subscription running until July 16.Market Sentiment and Initial Offering Details
The grey market premium indicates high listing expectations for Millworks Technologies, which is set to open an issue comprising a fresh allotment of 48.44 lakh equity shares. The company has established a price band ranging from Rs 315 to Rs 331 apiece, positioning the firm at an approximate valuation of Rs 583 crore upon listing.While the grey market premium is unofficial and does not guarantee final performance, the robust interest reflects investor anticipation regarding the company's solid financial trajectory and operational strength in critical industries.
Financial Performance Drives Investor Excitement
The surge in market sentiment is underpinned by Millworks Technologies' dramatic improvement in its financial health over the last two fiscal years. The manufacturing firm reported a monumental jump in net profit to Rs 37.1 crore in FY26, up sharply from Rs 5.2 crore in the previous financial year.Revenue has also witnessed spectacular growth, increasing nearly seven-fold to Rs 148.8 crore during FY26, compared to Rs 22.1 crore recorded in the prior period. Furthermore, the company delivered robust performance in FY25, achieving a near tripling of profit and more than doubling revenue over FY24.
Specialized Operations and Industry Exposure
Established in 2021, Millworks Technologies specializes in manufacturing precision components. These include machined parts, sheet metal pieces, and integrated assemblies destined for high-demand sectors such as aerospace, defence, railways, and semiconductor industries.The company operates four dedicated manufacturing facilities located in Bengaluru. It serves original equipment manufacturers (OEMs) primarily through the specialized Build-to-Print (BTP) and Build-to-Spec (BTS) models. In FY26, domestic sales constituted 73 percent of revenue, while international exports accounted for the remaining 27 percent.
Strategic Use of IPO Proceeds
The funds raised through the Millworks Technologies IPO are earmarked for strategic business expansion and working capital stabilization. The company plans to dedicate Rs 61.03 crore from the proceeds towards the purchase of new plant and machinery.A substantial portion, Rs 81.5 crore, will be utilized to meet working capital requirements. The balance amount will be allocated for general corporate purposes, supporting continued growth in these mission-critical industries. GYR Capital Advisors serves as the sole book-running lead manager for the entire offering.
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