MPK Steels (I) Ltd. IPO

INDO-MIM

• INDO-MIM is coming out with a 100% book building; initial public offering (IPO) of 7,91,56,531 shares of face value Rs 1 each in a price band Rs 461 - 485 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on July 23, 2026 and will close on July 27, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 1 and is priced 461 times of its face value on the lower side and 485 times on the higher side.
• Book running lead managers to the issue are HDFC Bank, Axis Capital, ICICI Securities, Kotak Mahindra Capital Company and SBI Capital Markets.
• Compliance officer for the issue is Santosh Kumar Dash.  

Profile of the company 

INDO-MIM provides end-to-end solutions for the manufacture of precision engineering components using metal injection molding (MIM) technology. Its capabilities include mold designing and tooling, coupled with finishing and assembly operations. With over 25 years of experience in the MIM industry, it is the largest manufacturer globally of precision engineering components using MIM technology. Over the years, the company has implemented a range of manufacturing technologies to enhance its product offerings to customers. In addition to MIM technology, it leverages technologies such as investment casting, precision machining, ceramic injection molding and metal three-dimensional (3D) printing. These technologies have strengthened its manufacturing capabilities and enabled it to address the evolving needs of customers across industries. Its product portfolio caters to automotive, defence, medical, consumer, and aerospace sectors, and it manufactured over 9,000 types of products in Fiscal 2026.

Its dual-shore manufacturing, with manufacturing capabilities both in India and countries such as the United States, the UK and Mexico coupled with its scale of operations, technical know-how and mold design capabilities, helps it competes with other global precision engineered product manufacturers. Its manufacturing model enables it to serve both Indian and global OEMs, helping it benefits from economies of scale. Its manufacturing capabilities enable it to cater to the needs of customers who require domestic manufacturing for their components. Additionally, having a local base offers additional supply chain security for customers who do not necessarily require domestic sourcing, in case of unforeseen events. Its diverse capabilities allow it to service the customers globally, which has established it as an export-oriented company with customers across North America, Europe and South East Asia.

Proceed is being used for: 

• Repayment/ prepayment, in full or part, of all or certain outstanding borrowings availed by the company
• General corporate purposes

Industry overview

Metal injection molding (MIM) can produce relatively small, highly complex geometries with excellent surface finish, high strength, and superior corrosion resistance. However, tolerances can vary depending on several factors, including part geometry, material selection, and processing conditions. Metal injection molding primarily uses a thermoplastic binder and metal powders. The binder is only a processing aid and is removed from the product after the injection molding process. MIM excels at applications that require shape complexity and material properties (high strength, magnetic permeability, and corrosion resistance) that cannot be fulfilled by plastic and light metal alloys. It offers tremendous single-step parts consolidation potential that makes it a competitive alternative to stamped/machined-parts assemblies. Many design and economic limitations of traditional metalworking technologies can be readily overcome by MIM.

The global MIM market was estimated at $3.7 billion in 2024 and is forecasted to grow at a CAGR of 8.5% between 2024 and 2029, to reach from $3.7 billion to $5.6 billion by 2029. The MIM industry is driven primarily by five major sectors: automotive, defence, consumer goods, aerospace, and medical devices. MIM components are utilized in a diverse range of products, including automobiles, smartphones, watches, medical equipment, household appliances, cameras, power tools, and defence components. The demand for MIM will be driven by the automotive and aerospace and defence sectors in Europe, North America, and key Asian markets and by consumer electronics in China, Japan, South Korea, Taiwan, and India. 

Further, the global 3D printing market is anticipated to expand at 21.5% CAGR from 2024 to 2029 to reach $ 53 billion in 2029, the market for ceramic injection molding is anticipated to grow at the CAGR of 7.3% to reach $586 million by 2029 and the investment casting market size is estimated to grow at the CAGR of 7% to reach $26 billion in 2029. 3D printing has many applications, with market value contributing to applications such as functional parts, tooling, and prototyping. The MIM industry uses prototyping applications and can serve as a key driver for industrial 3D printing. It is further categorized into material types such as metals, polymers, and ceramics. The 3D printing material type is classified into Plastic Powders (20%), Plastic Filaments (38%), Photopolymers (13%) and Metals (29%).

Pros and strengths 

Global leadership in manufacturing precision engineering components using MIM technology: The company is the largest manufacturer globally of precision engineering components using MIM technology with a market share of 6.8% in terms of revenue from MIM in Calendar Year 2025 and have held this position for the last six years. With its experience and capabilities in mold designing, tooling, product development as per design specifications and material selection, it offers end-to-end solutions to the manufacturing needs of its customers. Its experience in mold designing allows it to develop tools that optimize the manufacturing process, ensuring better productivity and precision. Its experience in product development allows it to manufacture products that meet its customers’ specifications and requirements. It provides suggestions on optimal product designs and recommends suitable materials for specific requirements. It has inhouse capabilities to supply finished components, utilizing various surface treatment processes. This allows it to deliver fully finished, quality components that meet the customer specifications.

Long-standing relationships with Indian and global OEM customers: The company has a diverse customer base and have long-standing relationships with several Indian and global OEMs. It collaborates with its customers to understand their challenges which enables it to deliver tailored solutions to them. Its approach of focusing on its customers’ specific industry requirements helps strengthen its relationship with them and enables it to establish itself as a preferred partner within their value chain.

Diversified product portfolio catering to applications across multiple industries: The company has a diverse product portfolio that serves customers across various industries, including automotive OEMs, and manufacturers of defence products, medical devices, consumer durables, and aerospace components. For the automotive industry, it manufactures components used in vehicle safety, fuel systems, powertrains, and interior applications, all of which are essential for automobiles. Its products in the defence industry include parts for firearms, such as triggers, hammers and sights. In the medical industry, it produces components for surgical devices used in endoscopy, laparoscopy, dental robotics and orthopedics. For the consumer industry, its products include fashion accessories, crossbow parts, cellphone components, tools and hardware applications.

Export driven player with extensive global distribution capability: It focuses on direct sales to its customers and leverage its existing relationships for sales of its products. Over the last three Fiscals, it supplied its products to customers in 55 countries. It has global sales capabilities with a dedicated sales team that provides customer support. As of March 31, 2026, it has three sales offices in China, Germany and the United States and 13 sales representatives in Czech Republic, France, Italy, Japan, South Korea, Singapore, Israel, Poland and Turkey. Its marketing team regularly coordinates with its sales representatives to understand demand patterns and tailor its production to grow product sales. Its presence in international markets supports its sales, marketing, and business development activities and provides insights into the economic, product requirements, and regulatory environments in these markets.

Risks and concerns

Dependence on top 10 customers: The company derives a significant portion of its revenue from the sale of its products to the top 10 customers, who contributed 38.41%, 38.94% and 42.00% of its revenue from operations in Fiscals 2026, 2025 and 2024, respectively. The loss of such customers or a significant reduction in demand of its products from these customers could have an adverse effect on its business, results of operations, financial condition and cash flows.

Business is dependent on export markets and global economic conditions: The company’s business is dependent on exports and the performance of geographies where it supplies its products. Over the years it has expanded its global reach. It serves a customer base, spread across North America, Europe, South East Asia and other foreign countries. It exports its products to various countries and its revenue from outside India represented 77.20%, 89.92% and 88.26% of the total revenue from operations in Fiscals 2026, 2025 and 2024, respectively. An economic slowdown in the countries to which it exports its products may have a significant adverse impact on its business, financial condition, cash flows and results of operations. Further, the countries where it exports its products may impose varying duties on its products. There can be no assurance that the duties imposed by such countries will not increase. Any adverse changes in the conditions affecting the industries in global markets in which its products are supplied, can adversely impact its business, cash flows, results of operations and financial condition.

Dependence on imported raw materials: The company imports a significant portion of its raw materials from countries, including China, Japan, the United Kingdom, Germany and France. Its operations and its suppliers’ ability to provide raw materials to it at competitive prices is affected by global commodity prices, inflation and its ability to negotiate with its suppliers effectively. It imports a significant portion of its raw materials constituting 60.95%, 61.80% and 59.63% of its total purchases of raw materials in Fiscals 2026, 2025 and 2024, respectively. Any restrictions on imports or fluctuation in global commodity prices that affect its raw materials could adversely affect its business, results of operations, cash flows and financial condition.

Failure to mitigate customer pricing pressure: The company manufactures and supplies complex and high-quality precision components for the automotive, defence, medical products, consumer and aerospace sectors to customers located in India and globally. Customers in the precision components industry generally pursue aggressive but systematic price reduction initiatives and objectives each year with their suppliers. It may experience pressure from its customers to reduce its prices, which may affect its profit margins. If it is unable to offset customer price reductions through improved operating efficiencies, new manufacturing processes, sourcing alternatives and other cost reduction initiatives, its business, results of operations, financial condition and cash flows may be adversely affected.

Outlook  

INDO-MIM is a leading global supplier of components using various technologies such as Metal Injection Molding, Investment Casting, Precision Machining, electronic component manufacturing business & 3D printing etc. The company has manufacturing facilities at Karnataka, Tamil Nadu and Andhra Pradesh. On the concern side, it does not have definitive agreements having commitment on part of its customers to purchase or place orders with us. It generally does business with its customers on a purchase order basis and its customers do not make long-term commitments/ agreements with the company. If its customers choose not to source their requirements from it, there may be an adverse effect on its business, results of operations, financial condition and cash flows.

The issue has been offering 7,91,56,531 shares in a price band of Rs 461- 485 per equity share. The aggregate size of the offer is around Rs 3,649.12 crore to Rs 3,839.09 crore based on lower and upper price band respectively. On performance front, total income increased by 28.06% from Rs 33,739.72 million in Fiscal 2025 to Rs 43,207.02 million in Fiscal 2026. Its restated profit for the year increased by 25.91% from Rs 4,237.34 million in Fiscal 2025 to Rs 5,335.43 million in Fiscal 2026

Meanwhile, the company intends to leverage its relationships with existing customers to increase its share of their business by offering additional products to them. It intends to capitalize on the trend of OEMs shifting to global platforms and consolidating their supplier bases to capture greater total value content in individual programs. It also intends to continue developing its backward integration capabilities to provide more material options to its customers. In the past, it initiated the manufacturing of stainless-steel powder as part of its backward integration strategy. It is in the process of establishing a manufacturing facility for iron powder production. It will continue to invest in innovation, automation, modern technology and equipment to improve its products and capitalize on changing customer preferences. It also intends to constantly review and optimize its product portfolio to include or eliminate products based on costs, profitability and process efficiencies involved in manufacturing such products.