I spent the last two days going through the Millworks Technologies RHP, cross-checking GMP data across multiple trackers, and lining up its numbers against listed peers. Here’s what actually matters before you decide to apply.
Millworks Technologies IPO: The Quick Snapshot
Millworks Technologies opened its SME IPO on July 14, 2026, and closes today, July 16. The price band sits at ₹315 to ₹331 per share, with a face value of ₹10. The company wants to raise ₹160.34 crore, almost all of it through a fresh issue, with no offer-for-sale component.
The shares list on the BSE SME platform, tentatively on July 21. Retail investors need a minimum of 800 shares, or two lots, which comes to ₹2,64,800 at the upper band. That’s a steep entry ticket for an SME issue, and it quietly filters out a lot of smaller retail investors before they even apply.
| Detail | Value |
|---|---|
| Price Band | ₹315 – ₹331 |
| Issue Size | ₹160.34 Cr |
| Lot Size | 400 shares |
| Min. Retail Investment | ₹2,64,800 |
| Listing | BSE SME, July 21 |
| Registrar | Purva Sharegistry |
What Does This Company Actually Build?
Millworks doesn’t make one product line. It machines precision parts for four industries: aerospace, defence, railways, and semiconductor equipment. Think aero-engine components, missile airframe parts, metro door actuators, and the machine frames used inside chip-making tools.
The company runs on two engagement models. Under Build-to-Print, it manufactures exactly what a customer’s drawing specifies. Under Build-to-Spec, it designs a part to meet a functional requirement the customer hands over, with more room for its own engineering input.
Both models keep Millworks tied closely to client engineering teams. That’s good for order stickiness, but it also means losing a key client relationship hurts more than it would for a company selling a standardised product.
Sridhar Acharya runs the company as Managing Director. The promoter family, which also includes H K Madhu, Sowmya Madhu, and Rashmi Sridhar Acharya, holds 65.08% of the company after the issue.
Why These Four Sectors Matter Right Now
This isn’t a random mix of industries. Each one is riding its own tailwind. The global aerospace and defence market grew from roughly $820 billion in 2024 to $875 billion in 2025. India’s semiconductor-linked demand is projected to nearly double, from about ₹4.65 lakh crore in 2025 to ₹9.30 lakh crore by 2030.
Indian Railways is modernising signalling and safety systems across its network, with revenue expected to climb from ₹2.56 lakh crore in FY24 toward ₹2.78 lakh crore in FY25. Add in India’s defence indigenisation push, and Millworks sits at the intersection of four separate government-backed growth stories rather than betting on just one.
That’s a genuine structural positive. It doesn’t guarantee execution, but it does mean demand isn’t the company’s biggest problem.
Inside the Factory: Capacity and Order Book
Four manufacturing units, all located in Bengaluru’s Peenya industrial belt, house the entire operation. The equipment list reads like a serious precision shop: 3-axis, 4-axis, and 5-axis CNC machining centers, wire EDM machines, fibre laser cutting systems, and CNC press brakes.
That’s not entry-level tooling. Five-axis machining and wire EDM typically show up in businesses making parts with the tight tolerances that aerospace and defence buyers demand, not general-purpose fabrication shops.
The order book stood at roughly ₹95.94 crore as of January 2026. That gives some near-term revenue visibility, though an order book can shrink quickly if a customer defers a program or reallocates it elsewhere.
Millworks also holds certified quality management systems, which matter more than people realise in aerospace and defence work. Most large OEMs won’t even start a vendor conversation without those certifications in place. The company runs a structured R&D function too, and serves some overseas customers, which adds an export leg to what would otherwise be a purely domestic defence-and-railway story.
Financials Charts
| Year | Revenue | Profit After Tax |
|---|---|---|
| March 2024 | ₹9.4 Cr | ₹1.9 Cr |
| March 2025 | ₹22.42 Cr | ₹5.25 Cr |
| March 2026 | ₹153.4 Cr | ₹37.06 Cr |
Funds Raised in IPO Total Issue Size – ₹160.34 Cr
The Numbers That Got Everyone’s Attention
Here’s the part that turned this into a talking point. Revenue moved from around ₹1.8 crore in FY23 to ₹9.40 crore in FY24, then ₹22.42 crore in FY25, then ₹153.40 crore in FY26. Profit after tax climbed the same ladder: ₹1.95 crore, ₹5.25 crore, and finally ₹37.06 crore.
That’s a 584% jump in revenue and a 606% jump in profit in a single year. Margins held up well through the scale-up too. FY26 EBITDA margin came in at 36.71%, and PAT margin at 24.91%. Return on equity hit 69.94%, and return on capital employed hit 56.44%.
Debt stays low through all this. Total borrowing was ₹17.02 crore against a net worth of ₹82.67 crore, putting debt-to-equity at just 0.21. On paper, this is a company that scaled fast without leaning hard on borrowed money to do it.
One exceptional year doesn’t make a track record, though. I’ll come back to that.
Is ₹331 a Fair Price? The Valuation Question
This is where the story gets genuinely interesting. At the upper band, post-issue P/E works out to 15.73x based on FY26 annualised earnings. Compare that to listed peers Azad Engineering, trading near 96.45x, and Unimech Aerospace, near 87.87x, and Millworks looks cheap by a wide margin.
| Company | P/E | RoNW | NAV |
|---|---|---|---|
| Millworks | 15.73x | 44.83% | ₹64.73 |
| Azad Engineering | 96.45x | 8.74% | ₹236.74 |
| Unimech Aerospace | 87.87x | 8.58% | ₹144.99 |
Flip the calculation to FY25 earnings, the year before the boom, and P/E jumps past 100x. That gap matters a lot. The entire “Millworks is undervalued” case rests on FY26 becoming the new normal, not a one-off spike that fades.
Return on net worth tells a similar story. Millworks posted 44.83% RoNW against roughly 8.6% to 8.7% for both peers, though its book value per share, at ₹64.73, sits well below theirs too. Price-to-book stands at 5.11x, and market cap at the upper band works out to ₹583.05 crore.
None of these individual numbers look alarming. What should make you pause is how new this entire growth trajectory actually is.
GMP and Subscription: What the Market Is Saying
Grey market premium touched as high as ₹390-395 in the days before the issue opened, then cooled toward the ₹240-300 range as subscription progressed. At a ₹300 premium, the indicative listing price works out near ₹631, roughly 90% above the issue price.
Remember that GMP is an unofficial number. It comes from grey market dealers, not any exchange, and it can swing hard in either direction right up to listing day.
Subscription data backs up the enthusiasm, though. By Day 2, July 15, the issue had subscribed 31.29 times overall. Retail demand ran hottest at 52.2x, non-institutional investors came in at 26.85x, while QIBs sat at just 0.16x. Institutional money typically floods in during the final hours of bidding, which happen to fall on today’s closing day.
How and Where to Apply
Apply via ASBA or UPI through your broker’s app — Zerodha, Groww, Upstox, Kotak Neo, or Angel One all support it. Select “Millworks Technologies IPO,” enter lots and UPI ID, then approve the mandate before 5 PM cut-off today, July 16. Offline forms work too, via your broker or bank branch.
The Risks Nobody’s GMP Chart Will Show You
A high GMP tells you what traders expect on listing day. It tells you nothing about the business three years out. Here’s what I’d actually want answered before applying.
Customer concentration runs high. Some estimates put the top ten clients at over 90% of revenue. Losing one large aerospace or defence contract would hit the top line hard.
The company is genuinely young. Incorporated in November 2021, Millworks has barely four and a half years of operating history, and most of its growth happened in the last twelve months alone.
Everything sits in one city. All four plants run out of Bengaluru. A local labour dispute, a power issue, or a regulatory hiccup affects the entire operation at once, not just a single unit.
Cash flow deserves a closer look. Fast-scaling manufacturers often post strong profits while showing negative operating cash flow, because growth ties up cash in inventory and receivables. Check this specific line in the RHP yourself.
SME shares trade thin. Lower liquidity on the SME platform means wider bid-ask spreads, and it can get harder to exit a position quickly if you need to.
None of this makes Millworks a bad business. It makes it a business where the downside case is just as plausible as the upside case, and your position size should reflect that.
Where the ₹146 Crore Is Actually Going
The company has kept its use-of-proceeds plan fairly simple. About ₹61.03 crore goes toward plant and machinery, and ₹81.50 crore goes toward working capital. The remainder covers general corporate purposes and issue expenses.
This split tells you something useful on its own. Millworks isn’t raising money to pay off promoters or clean up old debt through an offer-for-sale, since none exists here. Every rupee coming in either buys equipment or funds the receivables and inventory that come with a fast-growing order book.
Who Should Apply, and Who Should Skip This One
If you can handle SME-level risk, you’ve actually read the RHP, and you’re fine holding through volatility even if listing gains don’t show up right away, this fits a small, high-risk sleeve of a portfolio. The sector tailwinds around defence indigenisation, semiconductor localisation, and railway modernisation are real and structural, not manufactured hype.
If you want stability, a longer listed track record, or the ₹2,64,800 minimum ticket would meaningfully strain your portfolio, this isn’t the IPO worth stretching for. SME issues carry real allotment-lottery risk too. At over 50x retail subscription, most retail applicants simply won’t receive shares.
Whatever you decide, don’t apply purely because the GMP chart looks exciting. Grey market numbers move fast, sometimes within a few hours.
A middle path exists too. Some investors prefer to skip the allotment lottery entirely and watch the first few sessions of trading instead. Buying post-listing, once real price discovery kicks in and the GMP hype settles, isn’t the worst approach for a business you still believe in but don’t want to chase blind at the open.
The Bull Case vs the Bear Case
Strip away the noise, and this IPO comes down to two competing stories.
The bull case:
Millworks caught the early stage of a real structural shift. Defence indigenisation, semiconductor localisation, and railway modernisation aren’t short-term cycles. They’re multi-year, government-backed spending programs. A debt-light, high-margin precision manufacturer with 5-axis capability and proper quality certifications sits well placed to keep winning work as that spending plays out.
The bear case:
FY26 might be the exception, not the new baseline. A young company with heavy customer concentration can post one blowout year off two or three large orders, then plateau hard once those specific orders wrap up. At a P/E north of 100x on FY25 earnings, you’re paying up for a growth story that has only existed for a single financial year.
Both readings are reasonable. Which one plays out mostly depends on whether Millworks converts its current order book into repeat, diversified business, rather than a handful of one-time wins.
Final Take
Millworks Technologies is a genuinely interesting business sitting inside sectors India wants to grow: defence manufacturing, semiconductors, and railway infrastructure. FY26 financials are strong, debt stays low, and the order book gives some forward visibility.
But this is a bet on one exceptional year continuing, not a business with a long, proven cycle behind it. I’d treat this as a high-risk, high-reward allocation rather than a core portfolio holding, and I’d size the position accordingly.
Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. I am not a SEBI-registered investment advisor. IPO investments carry market risk, including the risk of losing your entire principal. Please read the complete Red Herring Prospectus and consult a SEBI-registered financial advisor before applying.
FAQs
₹315 – ₹331.
July 21, 2026, BSE SME.
No — high customer concentration, short history.
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