Teamtech Formwork Solutions Ltd. IPO

Teamtech Formwork Solutions

• Teamtech Formwork Solutions is coming out with an initial public offering (IPO) of 79,60,000 shares in a price band of Rs 61-63 per equity share. 
• The issue will open on May 19, 2026 and will close on May 21, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 5 and is priced 12.20 times of its face value on the lower side and 12.60 times on the higher side.
• Book running lead manager to the issue is Getfive Advisors.
• Compliance officer for the issue is Mithilesh Sharma.

Profile of the company

Teamtech Formwork Solutions operates on business-to-business (B2B) model and is engaged in the manufacturing, refurbishing and renting of modular T formwork and customised formwork system used in the construction industry. Formwork systems serve as temporary moulds that support and shape concrete which is poured into it until it attains the desired structural form (It provides support until the concrete gains enough strength to sustain its own weight and any imposed loads), making them an essential component of modern construction activities. it provides modular T formwork systems, including customised design, and technical support for projects. In addition to manufacturing new formwork systems, it also undertakes refurbishment and reconditioning of used formwork, activities enabling customers to extend product life. The company also offers a rental model, allowing customers to access formwork solutions without capital expenditure.

Presently, the company manufactures vertical modular T formwork systems which are only suitable for a wide range of vertical concrete structures. These systems are used for foundations, walls, shafts, tanks, bridges, circular walls and various other structural elements. With a balanced and versatile range of panels, its formwork can be easily adapted to diverse project layouts, configurations and cross-sections, supporting faster and more efficient construction execution. 

The company uses software licensed from third-party vendor(s) to support its design functions and routine operational activities. Among these, a formwork planning software helps the Company assess the number of panels required based on the layout or design plan provided by the client. This technological capability helps the Company provide estimations of project timelines and prepare reliable quotations, thereby enhancing operational efficiency and project planning accuracy.

Proceed is being used for:

• Funding of capital expenditure towards purchase of plant and machineries for expansion of new manufacturing unit
• Repayment/prepayment of all or certain of its borrowing availed by the company
• Meeting the company’s fresh working capital requirements in line with its projected business growth and operational needs
• General corporate purpose

Industry Overview

India's construction sector stands as a cornerstone of the nation's economic strategy, pivotal in addressing critical infrastructure needs and providing substantial employment opportunities. Infrastructure construction and real estate assets like offices, retail, housing, and data centres have been the major focus areas for both the government and the private sector. Logistics and warehousing have emerged as critical components within India's construction sector, driven by rapid urbanization and the need for efficient supply chain networks.

In the fiscal year 2024-25, the government has bolstered its capital expenditure by 11.1% to $133 billion, equivalent to 3.4% of the GDP. Such investments are poised to catalyze growth within the construction sector, fostering the development of modern infrastructure nationwide. Furthermore, government initiatives like the Pradhan Mantri Awas Yojana-Urban (PMAY-U) have marked significant progress by sanctioning 1.18 crore houses, with 86.6 lakh completed and 1.15 crore grounded for construction as of September 10, 2024. This initiative aims not only to alleviate urban housing shortages but also to enhance living standards across the country.

India's construction sector is poised for substantial growth, supported by significant government initiatives, robust investments in logistics and warehousing infrastructure, and a steadfast commitment to sustainable development. The sector's role in enhancing infrastructure, facilitating urbanization, and driving economic growth underscores its critical importance in India's broader economic strategy. The trajectory of India's construction sector reflects its integral role in shaping the country's economic landscape. With ongoing initiatives like PMAY-U, HRIDAY, etc. substantial investment commitments, a focus on sustainability through green building practices, and advancements in logistics and warehousing infrastructure, the sector is not only meeting current infrastructure demands but also setting the stage for long-term economic resilience and sustainable urban development across the nation.

Pros and strengths

Integrated Business Model: The company follows an integrated business model covering manufacturing, refurbishment and rental of modular T formwork systems. This structure enables servicing of different customer requirements at various stages of project execution. The rental and refurbishment activities support asset reuse and recurring revenue generation, while manufacturing activities support supply of new systems as per project demand.

Strong engineering and technical capabilities: The in-house engineering team undertakes formwork design, layout planning and site-level technical support. Design software is used for panel planning, quantity estimation and preparation of execution layouts. These capabilities assist in coordination with customers, preparation of project-specific solutions and planning of material deployment and timelines.

Pan-India and International market presence: The company supplies its products to customers across multiple Indian states including Telangana, Karnataka, Maharashtra, Tamil Nadu and other regions. Business growth in these regions is supported by repeat orders and customer references. The Company has also executed projects in international markets such as the UAE and Bahrain, enabling exposure to overseas project requirements.

Risks and concerns

High dependence on Standard Panel segment: A significant portion of its revenue is derived from the sale of Standard Pannel, making its business highly dependent on their demand and market performance. The Standard Panel segment contributed 65.60% in FY26, 60.24% in FY25 and 68.31% in FY24 to the company’s total revenue. Any decline in demand for new construction or infrastructure due to factors such as climatic changes, government policies, pricing pressure, competition from domestic and international players could materially and adversely impact its revenue and profitability.

Relies on third parties to acquire raw material: It relies to a certain extent on third parties for sourcing of raw material to produce the goods. Dependence on external parties for vehicles increases the likelihood of encountering service disruptions, inconsistencies in quality, and potential disputes.  its operational efficiency and financial performance depend significantly on its ability to manage inventory levels in line with market demand and consumer preferences. Further, market instability, including changes in costs may adversely impact the company's operations and financial performance. Subsequently, its inability to effectively manage inventory levels and fluctuations in prices of key components used in the process may increase its operational costs and adversely impact its business, profitability and cash flows. 

Dependence upon transportation services: The company does not have an in-house transportation facility, and it relies on third-party transportation and other logistic facilities at every stage of its business activity including for procurement of products from its suppliers and for transportation of its finished products to its customers. For this purpose, it hires services of transportation companies or sometimes it gets transportation support from its clients. However, it has not entered into any definitive agreements with any third-party transport service providers and engage them on a need basis. Additionally, availability of transportation solutions in the markets it operates in is typically fragmented. The cost of its goods carried by such third-party transporters is typically much higher than the consideration paid for transportation, due to which it may be difficult for the company to recover compensation for damaged, delayed or lost goods.  

Outlook

The Company continues to be engaged in the business of manufacturing formwork panels used in construction activities. Additionally, the Company provides formwork panels on a rental basis. It provides modular T formwork systems, including customised design, and technical support for projects. In addition to manufacturing new formwork systems, it also undertakes refurbishment and reconditioning of used formwork, activities enabling customers to extend product life. The company also offers a rental model, allowing customers to access formwork solutions without capital expenditure. On the concern side, its business is dependent on the sale of its services to certain key Industries and certain customers including its Promoter Group Companies. The negative change in industry and/or loss of any of these customers or loss of revenue from sales to these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

The company is coming out with a maiden IPO of 79,60,000 equity shares of face value of Rs 5 each. The issue has been offered in a price band of Rs 61-63 per equity share. The aggregate size of the offer is around Rs 48.56 crore to Rs 50.15 crore based on lower and upper price band respectively. On performance front, the total income of the company has increased from Rs 3,030.75 lakh in FY 2024 to Rs 3,297.60 lakh in FY 2025, showing a growth of 8.80%. Profit after tax (PAT) stood Rs 769.47 lakh in FY 2024 as compared to Rs 783.77 lakhs in FY 2025.

Meanwhile, the company’s business has grown primarily through repeat orders and referrals from existing clients. To increase its market coverage, the company has expanded its presence into Maharashtra, Tamil Nadu and Karnataka by developing regional marketing and customer outreach activities. The projects are spanned across various states in India. Further, the company has entered the international market by securing orders from clients in Bahrain and the UAE, which have contributed to increased utilisation of the Company’s manufacturing capacity. These projects have enabled the Company to establish a presence in the Middle East region.