Millworks Tech IPO GMP Crosses 100%, Signaling Potential Blockbuster Debut Ahead of Listing
The excitement surrounding the Millworks Technologies SME Initial Public Offering (IPO) has intensified as its Grey Market Premium (GMP) soared past the critical 100 percent mark. The Bengaluru-based company, which manufactures precision-machined components for key sectors like aerospace and rail transport, is set to offer a fresh equity issue next week.The Rs 160.34 crore SME IPO is scheduled to open for public subscription on July 14 and close on July 16. The fixed price band for the shares has been set at Rs 315-331 per share, with each lot size comprising 400 shares.
Skyrocketing Grey Market Premium Signals Investor Confidence
Tracking platforms indicate robust investor interest in Millworks Technologies, reflected by the strong GMP. One investment platform quoted a GMP of Rs 350 per share, pointing towards a potential listing gain estimated at 105.74 percent. Another estimate placed the GMP figure similarly high at around 105.74 percent.It is noteworthy that while these figures suggest exceptional upside, gains for SME IPOs are regulated and capped at 90 percent. Despite this market constraint, the current grey market performance underscores significant appetite for the company's public debut.
Financial Performance Fuels Strong Company Valuation
Millworks Technologies has demonstrated impressive growth across its financial metrics in recent years. The company reported a substantial more than seven-fold rise in net profit to Rs 37.1 crore in FY26, up from Rs 5.2 crore in the previous financial year.Revenue also saw massive growth, increasing nearly seven-fold to Rs 148.8 crore during FY26, compared to Rs 22.1 crore recorded in the same period. Furthermore, strong trends continued in FY25, where net profit nearly tripled and revenue more than doubled compared to FY24 figures.
IPO Structure and Future Capital Allocation
The IPO comprises a fresh issue of 48.44 lakh equity shares. At the upper end of the price band, the offering is currently valued at approximately Rs 160.34 crore, while the company's overall valuation stands significantly higher at about Rs 583 crore.Regarding future growth, the funds raised from this fresh issue have a clear allocation plan. The company proposes to utilize Rs 61.03 crore specifically for the purchase of plant and machinery. Additionally, Rs 81.5 crore is earmarked for working capital requirements.
The remaining portion of the funds will be allocated towards general corporate purposes. On the revenue side, domestic sales accounted for a dominant 73 percent of the company's FY26 total revenue, while exports contributed the remainder at 27 percent.
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