Millworks Technologies Limited IPO Overview
Incorporated in November 2021, Millworks Technologies Limited is a Bengaluru-based precision engineering and manufacturing company specialising in the design, development, and production of high-accuracy machined components, sheet metal parts, sub-assemblies, and integrated assemblies for mission-critical applications. The company operates under two engagement models — Build-to-Print (BTP), where products are manufactured strictly according to customer drawings, and Build-to-Spec (BTS), where components are developed based on customers’ functional and performance requirements. It primarily serves the aerospace, defence, railways, metro rail, drone, and semiconductor industries, where precision, quality, and reliability are of paramount importance.
The company now proposes to open its IPO on Tuesday, 14 July 2026, aiming to raise ₹160.33 crore at the upper price band. The IPO is entirely a fresh issue of 48.44 lakh equity shares, with no offer-for-sale component, meaning all proceeds will flow directly into the company. The issue is priced at a band of ₹315 to ₹331 per share, with shares proposed to be listed on BSE SME. The IPO is currently generating strong interest in the grey market, with a GMP of ₹280–₹350, reflecting a potential listing premium of approximately 85% above the issue price.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | BSE SME |
| Anchor Bidding Date | 13 July 2026 |
| IPO Open Date | 14 July 2026 |
| IPO Close Date | 16 July 2026 |
| Allotment Date | 17 July 2026 (Expected) |
| Refund / Credit to Demat | 20 July 2026 |
| Listing Date | 21 July 2026 (Tentative) |
| Price Band | ₹315 – ₹331 per share |
| Face Value | ₹10 per share |
| Lot Size | 400 shares |
| Minimum Investment (Retail) | ₹2,64,800 (2 lots = 800 shares) |
| Minimum Investment (HNI) | ₹3,97,200 (3 lots = 1,200 shares) |
| Issue Size | ₹160.33 crore |
| Fresh Issue | 48,44,000 shares (₹160.33 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. All IPO proceeds will go directly to the company.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | Not more than 22,09,200 shares (~50%) |
| Non-Institutional Investors (NII/HNI) | Not less than 6,63,600 shares (~15%) |
| Retail Individual Investors (RII) | Not less than 15,47,200 shares (~35%) |
| Market Maker | 4,24,000 shares (firm allotment) |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue is a fresh issue — the company will receive all proceeds from the IPO, and no promoter or existing shareholder is exiting.
Objects of the Issue (Fund Utilization)
The net IPO proceeds will be utilised for the following purposes:
- Capital expenditure for purchase of plant and machinery — primary use
- Working capital requirements
- General corporate purposes
Lead Managers & Registrar
- Book Running Lead Manager: GYR Capital Advisors Private Limited
- Registrar to the Issue: Purva Sharegistry (India) Private Limited
- Market Maker: Pace Stock Broking Services Pvt. Ltd.
Promoters & Management
The promoters of the company are Mr. Sridhar Acharya (Promoter & Managing Director), Mr. H K Madhu, Mrs. Sowmya Madhu, and Mrs. Rashmi Sridhar Acharya. Prior to the IPO, the promoters collectively held a 59.22% stake and the promoter group held a 5.86% stake in the company. Post-IPO, shareholding will be moderately diluted as the offering is entirely a fresh issue.
Mr. Sridhar Acharya, Promoter & MD, has articulated the company’s vision as building a globally trusted precision engineering company capable of delivering world-class solutions for mission-critical industries.
Company Details
Millworks Technologies Limited is a precision engineering company engaged in manufacturing high-accuracy machined components, sheet metal parts, and integrated assemblies for mission-critical applications across railways, aerospace, defence, metro rail, drones, and the semiconductor sector. The company serves clients through BTP and BTS models, building components aligned to stringent OEM specifications. As of January 2026, the company had an order book of approximately ₹95.94 crore, offering healthy revenue visibility over the medium term.
Sectors Served:
- Aerospace & Aero-engine Applications
- Defence (Missiles, Guidance Systems, Structural Components)
- Railways & Metro Rail (Rolling Stock, Train Control, Door Mechanisms)
- Semiconductor Equipment Manufacturing
- Drones & UAV Components
Key Products Manufactured:
- High-accuracy CNC machined components (3-axis, 4-axis, 5-axis)
- Fabricated sheet metal parts
- Sub-assemblies and integrated assemblies
- Aero-engine sub-assemblies
- Missile airframe components, guidance housings, hydraulic cylinder parts, structural brackets and mounts
Key Capabilities:
- Operates under both BTP (Build-to-Print) and BTS (Build-to-Spec) engagement models
- 4 advanced manufacturing facilities in Bengaluru, Karnataka, spanning ~40,000 sq. ft. and housing 52 CNC machines including 5-axis milling and turning centres, wire EDM machines, fibre laser cutting systems, CNC press brakes, welding stations, and dedicated assembly and inspection infrastructure
Manufacturing Facilities:
- 4 plants located in Peenya Industrial Area, Bengaluru — as of November 2025
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹22.42 | ₹1.95 |
| FY25 | ₹22.42* | ₹5.25 |
| FY26 (Full Year) | ₹148.77 | ₹37.06 |
| 9M FY26 (Dec 2025) | ₹236.50** | ₹38.69 |
*Note: Revenue figures for FY24–FY25 reflect early-stage operations. The company witnessed explosive growth in FY26, with revenue rising ~584% and PAT rising ~606% over FY25.
Key Financial Metrics
- Revenue grew ~584% and PAT grew ~606% between FY25 and FY26 — a remarkable growth trajectory.
- PAT Margins: 17.56% (FY23), 16.92% (FY24), 8.97% (FY25), 16.65% (9M FY26)
- RoCE: 22.14% (FY23), 19.25% (FY24), 17.66% (FY25), 13.32% (9M FY26)
- Average EPS (last 2 fiscals): ₹25.00 | Average RoNW: ~23.17%
- P/E at upper band: 15.51x (based on FY26 earnings) | 28.44x (based on FY25 earnings)
- Post-IPO market capitalization at upper band: ~₹800 crore
- Total borrowings as of December 31, 2025: ₹242.57 crore
- Contingent liabilities as of December 31, 2025: ₹61.64 crore
- No dividend paid for any of the reported periods
Company Strengths
- Operates in India’s fastest-growing precision engineering segments — aerospace, defence, railways, and semiconductor manufacturing — all of which are witnessing strong government-backed capex momentum
- Dual engagement model (BTP + BTS) allows the company to serve both specification-driven and design-driven client requirements, expanding its addressable market
- Four advanced, fully-equipped manufacturing facilities in Bengaluru with 52 CNC machines including 5-axis capabilities — enabling high complexity, high-tolerance manufacturing
- Explosive financial growth in FY26 — revenue up ~584% and PAT up ~606% over FY25 — demonstrating strong operational scaling
- Entire IPO is a fresh issue with no promoter exit — all capital directed towards capacity expansion and working capital
- Healthy order book of ~₹95.94 crore as of January 2026, providing near-term revenue visibility
- Experienced promoter team with export-oriented manufacturing operations and deep domain expertise in precision engineering
Key Risks & Challenges
- Extreme customer concentration: Top 10 customers contributed ~90.86% of total revenue from operations in a recent period — any client loss could significantly impact business
- Very young company: Incorporated in November 2021 — less than 5 years of operating history, with limited track record of managing large-scale operations
- High borrowings: Total borrowings of ₹242.57 crore as of December 31, 2025, along with contingent liabilities of ₹61.64 crore — raising concerns about debt serviceability
- PAT inconsistency: FY25 PAT declined due to an extraordinary item of ₹16.97 crore; the bumper 9M FY26 profitability raises questions about sustainability post-listing
- No listed peers: The company has no direct listed peers for valuation comparison, making price discovery challenging and increasing investor risk
- Sector dependency: Business performance is closely tied to government defence procurement, aerospace capex, and industrial investment cycles — any slowdown can directly impact order inflows
- SME IPO liquidity risk: Limited secondary market trading volumes on BSE SME platform
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
