Tipco Engineering India Ltd. IPO

Tipco Engineering India

• Tipco Engineering India is coming out with an initial public offering (IPO) of 68,03,200 shares in a price band of Rs 84-89 per equity share. 
• The issue will open on March 23, 2026 and will close on March 25, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 8.40 times of its face value on the lower side and 8.90 times on the higher side.
• Book running lead manager to the issue is Smart Horizon Capital Advisors.
• Compliance Officer for the issue is Kirti Jain.

Profile of the company

Tipco Engineering India is engaged in manufacturing and supplying a comprehensive range of machinery such as bead mill, batch type bead mill, lab bead mill, horizontal bead mill, vertical bead mill, Tungsten Carbide Pin-Type Bead Mill, Disc Type Horizontal Bead Mill, Dyno Mill, Lab Dyno Mill, Pug Mill, Attritor Mill, Lab Attritor Mill, Basket Mill, Combined Pin and Disc Type Bead Mill, Ceramic Bead Mill, Lab High-Speed Disperser, High-Speed Disperser, Twin-Shaft Disperser, Triple-Shaft Disperser, Vacuum High-Speed Disperser, Fixed Type Disperser, Platform Type Disperser, In-Line Homogenizer, In-Tank Homogenizers, High Shear In-Tank Homogenizer, Liquid Powder Mixing Machine, and Sigma Mixer. It is serving industries such as Paint and Coatings, Chemical, Chemical, Printing and packaging, Metal industry, construction and infrastructure. It offers machineries mainly across three different series (categories) i.e., Mill Series, Disperser Series and Homogenizers Series.

The company carries out its operations from its registered office and manufacturing unit situated at Sonipat, Haryana, India. Its manufacturing unit is equipped with sufficient machinery and fabrication equipment such as 20 Hp Refurbishment Vector Drive, Bandsaw Metal Cutting Machine 9', CNC turning center model puma 3100 uly, CNC turning machine, Horizontal CNC Lathe Machine, Horizontal Turning Center Machine, JFY Brand CNC Laser Cutting Machine Sheet, Polishing Machine Model XYD, CNC Turning Centre, Welding Machine ARC 400 Pro, Welding Machine and Double Vanguard Turning Machine. Majority of its operations are carried out in-house with a team of skilled workforce and engineers. Its manufacturing unit is equipped with advanced Quality Assurance Systems that guarantee the highest standards for both incoming materials and finished products.

It is certified with quality standards, including ISO 9001:2015 and ISO 45001:2018. Drawing on years of practical field experience, it has developed wide range of products that satisfy the demands of modern flow control in industry. Quality & Reliability is an Integral part of its practice and culture that guides its actions to deliver Products and Services that are safe. It continuously strives to improve its processes, ensuring that every product and service it provides adheres to quality standards. Its dedicated team emphasizes quality management, testing, and continuous feedback loops to guarantee that its solutions are safe, dependable, and compliant with international standards. Its commitment to quality and reliability underpins every aspect of its business, fostering partnerships built on trust and excellence. In addition to its manufacturing activities, the company is engaged in trading of ancillary products aligned with its core manufacturing operations, including procurement and supply of such items to clients. It also offers comprehensive services which includes construction, erection and dismantling work, installation & commissioning charges etc.

Proceed is being used for:

• Repayment/prepayment of all or certain of its borrowings availed of by the company
• Funding working capital requirement of the company
• General corporate purposes

Industry Overview

Manufacturing is emerging as an integral pillar in the country’s economic growth, thanks to the performance of key sectors like automotive, engineering, chemicals, pharmaceuticals, and consumer durables. The Indian manufacturing industry generated 16-17% of India’s GDP pre-pandemic and is projected to be one of the fastest growing sectors. The machine tool industry was literally the nuts and bolts of the manufacturing industry in India. Technology has stimulated innovation with digital transformation a key aspect in gaining an edge in this highly competitive market. Technology has encouraged creativity, with digital transformation being a critical element in gaining an advantage in this increasingly competitive industry. The Indian manufacturing sector is steadily moving toward more automated and process-driven manufacturing, which is projected to improve efficiency and enhance productivity. The HSBC India Manufacturing PMI edged up to 58.2 in April 2025 from 58.1 in March, slightly below the flash estimate of 58.4, marking the strongest sector improvement in ten months.

India has the potential to become a global manufacturing hub for wind power components. India is well-positioned to cater to 10% of the global wind energy demand by 2030, leveraging its manufacturing capacity, technology, and global reputation. India is rapidly positioning itself as a global manufacturing hub, especially in electronics, fuelled by supportive policies and a skilled workforce. Value addition in electronics has risen from 30% to 70% and is projected to touch 90% by FY27. With 17% of the nation’s GDP and over 27.3 million workers, the manufacturing sector plays a significant role in the Indian economy. Through the implementation of different programmes and policies, the Indian government hopes to have 25% of the economy’s output come from manufacturing by 2025. India now has the physical and digital infrastructure to raise the share of the manufacturing sector in the economy and make a realistic bid to be an important player in global supply chains.

India is an attractive hub for foreign investments in the manufacturing sector. Several mobile phone, luxury, and automobile brands, among others, have set up or are looking to establish their manufacturing bases in the country. The manufacturing sector of India has the potential to reach Rs 87,57,000 crore ($1 trillion) by FY26. The implementation of the Goods and Services Tax (GST) will make India a common market with a GDP of Rs 2,95,35,800 crore ($3.4 trillion) along with a population of 1.48 billion people, which will be a big draw for investors. One of the initiatives by the Government of India's Ministry for Heavy Industries & Public Enterprises is SAMARTH Udyog Bharat 4.0, or SAMARTH Advanced Manufacturing and Rapid Transformation Hubs. This is expected to increase competitiveness of the manufacturing sector in the capital goods market. With impetus on developing industrial corridors and smart cities, the Government aims to ensure holistic development of the nation. The corridors would further assist in integrating, monitoring, and developing a conducive environment for the industrial development and will promote advance practices in manufacturing.

Pros and strengths

Wide range of products: It offers a wide range of products designed to meet diverse customer needs. For any company, innovation and technical progress are key factors for its success in the long term. It constantly encourages its people to innovate and develop new products for catering to demands of its customers. It is engaged in manufacturing and supplying a comprehensive range of machinery such as bead mill, batch type bead mill, lab bead mill, horizontal bead mill, vertical bead mill, Tungsten Carbide Pin-Type Bead Mill, Disc Type Horizontal Bead Mill, Dyno Mill, Lab Dyno Mill, Pug Mill, Attritor Mill, Lab Attritor Mill, Basket Mill, Combined Pin and Disc Type Bead Mill, Ceramic Bead Mill, Lab High-Speed Disperser, High-Speed Disperser, Twin-Shaft Disperser, Triple-Shaft Disperser, Vacuum High-Speed Disperser, Fixed Type Disperser, Platform Type Disperser, In-Line Homogenizer, In-Tank Homogenizers, High Shear In-Tank Homogenizer, Liquid Powder Mixing Machine, and Sigma Mixer. It strives to provide high-quality options across various product range. Its extensive selection ensures that customers can find everything they need in one convenient place, backed by excellent service and competitive prices.

Repeat orders from customers: It has a continuing relationship with key Customers & Suppliers. These long-standing relationships are result of its commitment to quality, timely delivery, promptness and customised solution in payments and adaptability. Its business and growth are significantly dependant on its ability to maintain the customer relationship. Having many years of experience in the industry and being able to identify these players would give it a competitive advantage in the business segment. For the period ended December 31, 2025 and for the last three Fiscals i.e.,2025, 2024 and 2023, its top 10 customers were 75.80%, 78.83%, 76.94% and 60.97% of total revenue from operations. Also, when there is a customer complaint, the product is tested once again and on testing the product, the report generation of the testing, results into a positive one and the complaint is resolved satisfactorily, which it believe have been established and are strengthened by the dedicated infrastructure and its ability to meet customers’ requirements for customized products.

Manufacturing setup under one roof: Its manufacturing unit is equipped with sufficient machinery and fabrication equipment. Majority of its operations are carried out in-house with a team of skilled workforce and engineers. Its manufacturing unit is equipped with advanced Quality Assurance Systems that guarantee the highest standards for both incoming materials and finished products. It is equipped with each stage processing equipment and machines due to which its manufacturing process underscores its commitments to efficiency, quality, and innovation. Its custom build order management software facilitates swift workflows for its valuable corporate clients, empowering them to efficiently track the progress of their orders. The facility under one roof brings efficiency, control, supply assurance and large-scale supplies that are crucial to meet the demands of its customers. It also helps in commanding better management oversight, security of precious metal due to reduced movement and most importantly controlling the manufacturing process loss. This enables it to control costs and increase its profit margins and gives it a competitive advantage.

Risks and concerns

Revenue concentration among key clients: The company depends on top 10 customers for a significant portion of its revenues from operations which contributed 75.80%, 78.83%, 76.94% and 60.97% of its revenue from operations, respectively in a period ended December 31, 2025 and in the fiscal year 2025, 2024 and 2023, Also, the company in the usual course of Business does not have any long-term contracts with its customers and it relies on purchase orders for delivery of its products and its customers may cancel or modify their orders, change quantities, delay or change their sourcing strategy. Loss of one or more of its top customers or a reduction in their demand for its products or reduction in revenue derived from them may adversely affect its Business, Results of Operations and Financial Condition. 

Impact of industry downturns on business operations: It is dependent on the performance of industries viz. Paint and Coating, Constructions and Infrastructure and metal which totally contributed 72.50%, 88.79%, 88.47%, and 70.33% of its revenue from operations in the period ended December 31, 2025 and in the fiscals 2025, 2024 and 2023 respectively in which its customers operate and fluctuations in the performance of such industries may result in a loss of such customers, a decrease in the volume of work it undertakes or the price at which it offers its services. These industries may be sensitive to factors beyond its control, including general economic conditions such as consumer demand, consumer confidence, inflation, employment and disposable income levels, interest rate levels, demographic trends, technological changes, increasing environmental, health and safety regulations, government policies, political instability and fuel prices. A loss of, or a significant decrease in business from top customers could materially and adversely affect its business, results of operations and financial condition.

High reliance on top suppliers for procurement: Its business operations rely significantly on the continuous and timely supply of raw materials from top one supplier, top 5 and top 10 suppliers, Also, it does not have continuing and exclusive supply agreement with them. Its purchases of stock-in-trade from top 10 suppliers are 71.61%, 59.93%, 56.66% and 67.83% in period ended December 31, 2025 and in fiscal years 2025, 2024 and 2023 respectively, accordingly, this exposes it to a concentration of purchases from top 10 suppliers and also, any interruptions or discontinuation of same will adversely impact its overall performance and profitability.

Outlook

Tipco Engineering India is engaged in manufacturing and supplying a comprehensive range of plants and machinery such as bead mill, batch type bead mill, lab bead mill, horizontal bead mill, vertical bead mill, Tungsten Carbide Pin-Type Bead Mill, Disc Type Horizontal Bead Mill, Dyno Mill, Lab Dyno Mill, Pug Mill, Attritor Mill, Lab Attritor Mill, Basket Mill, Combined Pin and Disc Type Bead Mil, etc. It is serving industries such as Paint and Coatings, Chemical, Printing and packaging, Metal industry, construction and infrastructure and machinery and equipment. It offers its plants and machineries mainly across three different series (categories) i.e., Mill Series, Disperser Series and Homogenizers Series. On the concern side, it generates its majority of the sales from domestic market of which major portion of sales from its operations is generated from certain geographical regions especially, Uttar Pradesh, Rajasthan and Haryana which totally contributed 60.95%, 73.03%, 81.86% and 65.46% for the period ended December 31, 2025 and for the fiscals 2025, 2024 and 2023 respectively and minority portion of sales is from international market. Any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

The company is coming out with a maiden IPO of 68,03,200 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 84-89 per equity share. The aggregate size of the offer is around Rs 57.15 crore to Rs 60.55 crore based on lower and upper price band respectively. On performance front, the revenue from operations for FY25 stood at Rs 13,313.78 lakh whereas in FY24 it was Rs 10,122.60 lakh representing an increase of 31.53%. Moreover, profit after tax for the period ended March 31, 2025, stood at Rs 1,561.04 lakh and for the year ended March 31, 2024 it was Rs 844.52 lakh representing an increase of 84.84%.

The company is focusing on expanding its export business to account for of its total revenue. This requires identifying and entering new international markets, enhancing its product offerings to meet diverse global demands, and building strong relationships with overseas partners. By streamlining its export processes, investing in targeted marketing campaigns, and ensuring compliance with international standards, it aims to increase its global footprint and maximize revenue from exports. This focused approach will not only diversify its income streams but also position it competitively in the global marketplace. This approach seeks to stimulate economic growth, strengthen the trade balance, and elevate global competitiveness. Going forward, it intends to repay certain amount of its loans to improvise its debt equity ratio and also this will help the company to obtain working capital loans / term loans for expansion in future which will improve its operational efficiency. Further, repayment of loans and borrowings will reduce burden of repayment of loans repayable on demand and enhance its financial stability and reduce long term liabilities. Further, it aims to accelerate the development of innovative products and enhance overall quality. It has entered into a Business Cooperation Agreement on April 10, 2024 with a German Company. This combines expertise from diverse teams to drive research and development, streamline processes, and deliver superior solutions to meet evolving market demands. Through shared resources and knowledge, the collaboration aims to foster innovation, ensure rigorous quality standards, and achieve sustainable growth for all stakeholders.