Millworks Technologies Ltd. IPO

Millworks Technologies 

• Millworks Technologies is coming out with an initial public offering (IPO) of 48,44,000 shares in a price band of Rs 315-331 per equity share.
• The issue will open on July 14, 2026 and will close on July 16, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 31.50 times of its face value on the lower side and 33.10 times on the higher side.
• Book running lead manager to the issue is GYR Capital Advisors.
• Compliance officer for the issue is Srivathsan K N.

Profile of the company

Millworks Technologies is a precision engineering company engaged in the manufacture of machined components, sheet metal parts, and integrated assemblies used in mission-critical applications across the railways, aerospace, defence, and semiconductor sectors. Its operations are undertaken under Build-to-Print (BTP) and Build-to-Spec (BTS) engagement models and include both full-scope manufacturing as well as job-work arrangements. Under the BTP (Build-to-Print) model, manufacturing is carried out in accordance with customer-provided drawings and technical specifications, while under the BTS (Build-to-Spec) model, customers specify functional and performance requirements and it undertakes manufacturing to meet such specifications. This dual model enables it to support a diverse array of customer needs from strict adherence to design intent to more collaborative, performance-driven development. 

Incorporated in 2021, the company has developed into a multi-sector engineering enterprise with manufacturing capabilities spanning precision machining, sheet metal fabrication, sub-assembly, and related processes. It primarily supplies to Original Equipment Manufacturers (OEMs). Its quality systems and process controls are designed to meet rigorous industry standards, ensuring that every component and assembly it supplies performs reliably in the most demanding environments. 

Its manufacturing operations are supported by structured quality management systems. It has implemented and maintains a Quality Management System certified under AS9100D and ISO 9001:2015 on a multi-site basis. Unit I and Unit II are certified for the manufacture and supply of precision machined components for aerospace, defence and other industrial applications. Unit III is certified for the manufacture, supply and assembly of precision machined components and sheet metal parts for aerospace, defence, rail and other industrial applications. Unit IV is certified for the manufacture and supply of precision machined components for aerospace, defence and other industrial applications, and manufacture and supply of springs and wire forms for engineering applications. Its quality assurance infrastructure includes coordinate measuring machines (CMMs), video measuring systems, hardness testers, and calibrated measuring instruments. Quality records, inspection reports, and material traceability documentation are maintained in accordance with customer and applicable regulatory requirements. 

Proceed is being used for:

• Funding capital expenditure of the company to purchase plant and machinery
• Funding the working capital requirements of the company
• General corporate purposes

Industry overview

The civil aviation industry in India has emerged as one of the fastest-growing sectors of the economy, playing a vital role in connectivity, trade, and tourism. It encompasses scheduled air transport services (domestic and international airlines), non-scheduled services such as charter flights and air taxis, as well as dedicated air cargo services for transporting goods and mail. India is currently the third-largest domestic aviation market in the world, supported by rising disposable incomes, urbanisation, and increasing preference for air travel. Passenger traffic (domestic + international) stood at 35.50 million during FY26 (April-January 2026), while freight traffic reached 3.29 MMT in the same period. In 2023, the contribution of India's travel and tourism sector to India's economy was worth Rs 21,00,000 crore ($245 billion). By 2035, the contribution is poised to be doubled reaching Rs 42,00,000 crore ($490 billion).

Meanwhile, India is home to one of the strongest military forces in the world and holds a position of significant strategic importance. The Indian defence sector comprises several key market segments, with military fixed-wing aircraft, naval vessels and surface combatants, and missiles and missile defence systems representing the top three. To modernise its armed forces and reduce dependency on imports, the government has implemented several initiatives under the ‘Make in India’ programme, providing policy support to encourage domestic defence manufacturing. Foreign investment in the sector has also seen steady growth, with cumulative FDI equity inflow in the Defence industry is Rs 207 crore ($27.78 million) during the period April 2000-December 2025. Looking ahead, the government has set an ambitious target of achieving defence manufacturing worth Rs 3,00,000 crore ($34.7 billion) by FY29. Strengthening its technological edge, India plans to deploy a constellation of 52 satellites by CY30 to enhance space-based surveillance for the Army, Navy, and Air Force.

Further, India's semiconductor end-demand revenues are anticipated to double from 2025 to 2030, increasing from Rs. 4,64,940 crore ($54 billion) to Rs 9,29,880 crore ($108 billion). The revenue from localisation opportunities will remain around Rs 1,11,930 crore ($13 billion) in 2030. India's semiconductor end market to grow by 15% compound annual growth rate (CAGR) from 2025 to 2030, with annual revenues reaching Rs 9,29,880 crore ($108 billion) in 2030. This 15% CAGR estimate is higher than the global semiconductor end market forecast, driven by India's favourable demographics, strong electronics demand, rising enterprise adoption of advanced semiconductors, and supportive government policies. However, India currently accounts for only 0.1% of global wafer capacity, around 1% of annual equipment spending, and 6.5% of semiconductor end-demand share. Meanwhile, the Indian railway system is regarded as the foundation and lifeblood of the economy. Indian railways span thousands of kilometres practically covering the entire nation, making it the fourth largest in the world after the US, China, and Russia. The Railways Board, which has a monopoly over the provision of rail services in India, oversees the whole infrastructure. Indian Railways’ gross revenue stood at Rs 2.79 trillion ($31.57 billion) for FY26, reflecting the continued strength of its freight-led earnings model and steady growth in passenger revenues. Indian Railways plans to invest Rs 16,70,000 crore ($193.98 billion) by 2031 to modernise 1,309 stations, expand freight corridors, develop high-speed rail projects, and electrify tracks, aiming to boost operational efficiency and reduce logistics costs.

Pros and strengths

Certified quality management systems supporting process discipline and documentation control: It has implemented and maintains a Quality Management System certified under AS9100D and ISO 9001:2015 on a multi-site basis. Unit I and Unit II are certified for the manufacture and supply of precision machined components for aerospace, defence and other industrial applications. Unit III is certified for the manufacture, supply and assembly of precision machined components and sheet metal parts for aerospace, defence, rail and other industrial applications. Unit IV is certified for the manufacture and supply of precision machined components for aerospace, defence and other industrial applications, and manufacture and supply of springs and wire forms for engineering applications. Inspection activities are carried out in designated inspection areas equipped with coordinate measuring machines (CMMs), surface finish testers, and profile projectors. Each measuring instrument and inspection equipment is maintained under a defined calibration schedule. It maintains material traceability records, inspection reports, process sheets, non-conformance records, and rejection logs in accordance with customer and applicable standard requirements. Quality records are retained through controlled documentation systems with restricted access. Internal audits are conducted periodically to assess compliance with quality procedures and approved quality plans.

Global customer relationships and export-oriented business operations: It caters to both domestic and international customers, including Original Equipment Manufacturers (OEMs), Tier-1 and Tier-2 suppliers operating in the aerospace, defence, railways, and semiconductor sectors. Its export operations extend to 9 countries, including Canada, United States of America, Israel, Germany, France, North Macedonia, Italy, United Kingdom, and Czech Republic. Customer engagements are typically supported through recurring purchase orders and rate-based supply arrangements. All export transactions are executed in compliance with applicable export control regulations, including Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) requirements, where applicable, and are supported by defined internal processes for export documentation, regulatory filings, and payment realisation.

Structured research and development function focused on process improvement and electronic integration: Research and Development (R&D) plays an important role in its manufacturing operations by supporting innovation and continuous process improvement. It undertakes R&D activities focused on live process improvement initiatives aligned with Industry 4.0 applications to enhance productivity and operational efficiency. It has developed in-house capability for designing and building electronic boards used in battery management systems and auto pilot applications. It is strengthening its technical capabilities through ongoing investments in infrastructure and training aimed at developing advanced avionics-related competencies among its engineers. Through these initiatives, it supports improved process control, consistent product quality, and faster delivery timelines across its manufacturing operations.

Risks and concerns

Reliance on third-party suppliers for raw materials: It relies on third-party suppliers for raw materials, plant, machinery, and components on a purchase-order basis. Any failure or delay in supplier performance, supply disruptions, or price volatility may materially adversely affect its business, results of operations, financial condition, cash flows, and future prospects. In Fiscal 2026, 2025, and Fiscal 2024, the cost of raw materials procured from its top 10 suppliers represented 84.31%, 60.61%, and 57.00% of total purchase of raw materials, respectively. Any loss or disruption in supplies may adversely impact its inventory procurement, revenue, and results of operations.

Substantial portion of its revenue derived from key customer: Its business is significantly dependent on a key customer, Quick Pay, which contributed 47.02% of its total sales amounting to Rs 6992.76 lakh for the period ended March 31, 2026. Its key customer primarily operates in the business of providing drone-based solutions. Since it derives a substantial portion of its revenues from this customer, the loss of such customer or any reduction in demand from them, whether due to loss of contracts, delays in execution of existing orders, unsuccessful commercial negotiations, disputes, reduction in their business operations, loss of market share, downturn in their industry, or any change in their procurement strategies, including increased in-house execution of services, could materially and adversely affect its business operations, revenues, profitability, cash flows, and financial condition, particularly if such business is not replaced by revenues from other customers in a timely manner.

Dependency on certain business partners for Defense sector project execution: The company is dependent on certain business partners, including Big Bang Boom Solutions (BBB and Quick Pay, for execution of certain defence sector projects involving time-sensitive assembly, integration and delivery requirements. Due to limited project timelines and the need to avoid logistical delays, partial assembly and integration of drones are undertaken at business partners facility by its personnel along with their team. Further, under a ‘Bill-to Ship-to’ arrangement, materials/sub-assembled products were directly dispatched from Supplier Facility to Customers to ensure timely execution of project requirements. Accordingly, its execution of such defence sector projects is dependent on supplier ‘Big Bang Boom Solutions’ for sub assembly of products including availability of infrastructure, logistics support and timely operational execution. Any disruption, delay or termination of such arrangements, or failure in coordination between the parties, may adversely affect its ability to execute projects within stipulated timelines and may have an adverse impact on its business operations, revenues, cash flows and overall financial performance.

Outlook

Millworks Technologies is a precision engineering company specializing in manufacturing machined components, sheet metal parts, and integrated assemblies for mission-critical applications across the railways, aerospace, defence, and semiconductor sectors. Its operations follow both Build to Print (BTP) and Build to Spec (BTS) engagement models, covering full-scope manufacturing and job-work assignments. It caters to both domestic and international customers, including Original Equipment Manufacturers (OEMs), Tier-1 and Tier-2 suppliers operating in the aerospace, defence, railways, and semiconductor sectors. On the concern side, its high level of trade receivables relative to its revenue from operations indicates elongated working capital cycles and exposes it to collection risks, which may adversely affect its liquidity and financial condition.

The company is coming out with a maiden IPO of 48,44,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 315-331 per equity share. The aggregate size of the offer is around Rs 152.59 crore to Rs 160.34 crore based on lower and upper price band respectively. On performance front, the revenue from operations of the company for FY25-26 was Rs 14,876.70 lakh as against Rs 2,210.01 lakh for FY24-25, an increase of 573.15%. Profit after tax for the FY25-26 was at Rs 3,706.39 lakh against profit after tax of Rs 524.90 lakh in FY24-25, a surge of 606.11%.

Meanwhile, it intends to pursue strategic alliances with domestic and international entities for co-development, joint manufacturing, and technology collaboration, subject to applicable approvals and commercial arrangements. Such collaborations are proposed to support execution of customer programs within its core business sectors of aerospace, defence, railways, and semiconductor. Its approach is to engage with partners where complementary technical capabilities or process expertise can enhance execution of customer requirements under Build-to-Print (BTP) and Build-to-Spec (BTS) models. Going forward, it intends to strengthen its presence within existing customer ecosystems by expanding the range of components and sub assemblies supplied to OEMs, Tier-1 and Tier-2 suppliers operating in its core sectors. This strategy involves increasing participation in approved vendor programs and supplying additional components under existing customer relationships, subject to qualification and approval processes.