Millworks Technologies IPO Surges Ahead of Listing as Grey Market Explodes with Near 120% Premium
The listing of precision engineering firm, Millworks Technologies, is fast approaching the BSE SME platform tomorrow, July 21. The Rs 160.34-crore initial public offering (IPO) witnessed an overwhelming display of investor confidence following its subscription period ending on July 16.The IPO was aggressively subscribed by investors, reflecting robust demand for the company's shares. The issue received a massive bid for 67,96,30,000 shares against the 35,18,800 offered. This strong interest underscores the appetite for high-quality manufacturing firms in the SME space.
Investor Demand Drives Massive Subscription Figures
The subscription figures demonstrate widespread market enthusiasm across all investor categories. Retail investors led the charge, subscribing their reserved portion a remarkable 216.46 times. Similarly, non-institutional investors (NII) showed fierce interest, booking nearly 194.05 times of the shares.
The IPO was designed with a price band set between Rs 315 and Rs 331 per share. The company offered 48.44 lakh equity shares through a fresh issue component. This structure ensured that all funds raised contributed directly to enterprise growth.
Grey Market Premium Signals Steep Listing Gains
Ahead of the official listing, Millworks Technologies is commanding an impressive premium in the grey market (GMP). As reported by IPO Watch and Investorgain on July 20, the GMP stood at Rs 390 per share. This implied an estimated listing price of approximately Rs 721 per share.
The unofficial trading suggests a spectacular gain potential for prospective investors. The projected rise translates to an estimated listing gain of 117.82 percent over the issue price. While this phenomenal premium is anticipated, market participants must note that gains for SME IPOs are capped at 90 percent.
Future Growth and Fund Utilization Plans
Millworks Technologies operates as a precision engineering company, manufacturing high-accuracy machined components and integrated assemblies. Their client base spans mission-critical sectors including aerospace, defence, railways, metro rail, drone technology, and the semiconductor industry.
The IPO’s proceeds are earmarked strategically for future expansion and operational stability. The company has allocated Rs 61.03 crore towards the purchase of plant and machinery. A significant allocation of Rs 81.50 crore is designated for working capital requirements.
The company’s domestic market holds a dominant position in its revenue structure, which contributed 73 percent of its total revenue in FY26. Exports accounted for the remaining 27 percent, showcasing a diversified business model.
Anchor Investments and Post-Issue Valuation Outlook
Prior to the public offering, anchor investor bidding was successfully completed on July 13. In this phase, the company raised nearly Rs 44 crore from nine participating entities, including Rajasthan Global Securities and Evergrow Capital Opportunities Fund.
The issue is currently valued at approximately Rs 160.34 crore at the upper end of the price band. Post-issue, the company’s valuation is conservatively estimated at around Rs 583 crore, signaling significant underlying growth potential that supports the highly enthusiastic market reaction witnessed in the grey market.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.