Millworks Technologies Ltd. Share Price

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.

Kanohar Electricals

• Kanohar Electricals is coming out with a 100% book building; initial public offering (IPO) of 1,69,49,595 shares of face value Rs 2 each in a price band Rs 601-632 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 September 08, 2026 and will close on September 10, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 2 and is priced 300.50 times of its face value on the lower side and 316.00 times on the higher side.
• Book running lead managers to the issue are Nuvama Wealth Management and IIFL Capital Services.
• Compliance officer for the issue is Neha. 

Profile of the company

Kanohar Electricals is one of the leading domestic players in transformer manufacturing. It caters to high growth industries such as power transmission, railways, renewable energy, and power distribution. The company is one of five companies in India to have the short circuit test certification for 500 MVA 400 kV transformers that are used in the power transmission industry. It is one of four manufacturers in India who are certified by Research Designs and Standards Organisation (RDSO), the research and development wing of Indian Railways, to manufacturing 100 MVA 132 kV Scott transformers. It is also one of two Indian manufacturers certified to manufacture 100 MVA 220 kV Scott transformers, both of which cater to the demand for rail network electrification from the Indian Railways. Through its backward integrated facilities, it offers a wide range of products and solutions for India’s energy infrastructure, particularly in the manufacture of transformers with its in-house technology. 

The company operates its business in two segments, i.e., (i) Transformer Manufacturing Business; and (ii) EPC Business. EPC Business, it undertakes engineering, procurement and construction projects in the power transmission and distribution sector, in addition to its transformer manufacturing operations, which enables the company to execute turnkey projects for substations and transmission lines. Under its EPC Business, it undertakes turnkey installation of air and gas insulated substations, bay augmentation in existing substations up to 400 kV class, and installation of transmission lines across 132 kV, 220 kV and 400 kV. EPC projects typically involve design, engineering, procurement, supply, erection, testing and commissioning of electrical infrastructure.

Proceed is being used for: 

• Funding the capital expenditure requirements of the company towards: (i) purchase of new machinery and equipment for its Gangol manufacturing facility for increasing its transformer manufacturing capacity, expanding and automating its backward integration facilities and enhancing operational efficiency; (ii) civil construction and interior development of an office building at its Gangol manufacturing facility; (iii) enhancing its sustainability initiatives by (a) setting up of solar power plants at its manufacturing facilities, and (b) purchasing electric vehicles for handling and movement at its Gangol manufacturing facility.
• Funding incremental working capital requirements of the company
• General corporate purposes

Industry overview

A transformer is an electrical device used in power systems to transfer electrical energy from one circuit to another through the principle of electromagnetic induction. It operates without any direct electrical connection between the two circuits. The primary function of a transformer is to either step up (increase) or step down (decrease) voltage levels based on the requirement of the system. This voltage transformation makes it possible to transmit electricity efficiently over long distances and safely distribute it for residential, commercial, and industrial use. 

The transformer market in India has been growing steadily. Between CY19 and CY25, the market increased from $3,691.4 million to $4,944.9 million, with a CAGR of 5.0%. This growth is mainly due to more areas getting electricity and new infrastructure projects. From CY25 to CY30, the market is expected to grow faster, reaching $6,854.2 million, with CAGR of 6.7% during this period. From CY19 to CY25, the transformer market in India grew gradually and steadily. In CY19, power transformers had the highest share, valued at $1,691.3 million, followed closely by distribution transformers at $1,601.1 million. Traction transformers $152.3 million, Scott transformers at $91.9 million, and other special-purpose transformers at $154.9 million. Over the years, all these segments showed moderate growth. By CY26, power transformers are expected to reach $2,660.0 million and distribution transformers to $2,083.1 million.

The strong growth in transformer demand reflects robust policy support and rising investment in energy infrastructure. Key government initiatives such as ‘Power for All’, the National Electricity Plan (Transmission), the National Rail Plan 2030, and the National Infrastructure Pipeline (NIP), along with the development of Green Energy Corridors aligned with India’s 500 GW renewable energy target, decarbonization, and energy transition goals, are driving modernization of the grid, improving reliability, and enabling large-scale integration of renewable power. Beyond new capacity, demand is also fuelled by the replacement of ageing transformers in urban and industrial areas, with modern, efficient models better equipped to handle higher and more variable loads. At the same time, policy thrust through ‘Make in India’ and ‘Atmanirbhar Bharat’ is promoting local manufacturing, while initiatives such as smart grids and smart metering are further boosting domestic production and exports of transformers.

Pros and strengths 

Established player in transformer manufacturing sector catering to high growth industries: The company has over 40 years of experience in the Transformer Manufacturing Business. It is one of the leading domestic players in transformer manufacturing. It caters to high growth industries such as power transmission, railways, renewable energy, and power distribution. It manufactures transformers across a wide range of voltage capacities, ranging from below 132 kV to above 400 kV. In particular, the company is one of five companies in India to have the short circuit test certification for 500 MVA 400 kV transformers that are used in the power transmission industry, which enables it to compete for large and high-value contracts. The company are one of four manufacturers in India who are certified by RDSO, the research and development wing of Indian Railways, to manufacturing 100 MVA 132 kV Scott transformers. It is also one of two Indian manufacturers certified to manufacture 100 MVA 220 kV Scott transformers, both of which cater to the demand for rail network electrification from the Indian Railways. As an established player in the transformer manufacturing industry, it benefits from economies of scale, long-standing customer relationships, and approved vendor status with utilities and railways, enabling it to secure large contracts.

Successful short circuit testing of transformers up to 500 MVA 400 kV:  The company has conducted short circuit tests for various ratings of transformers which verify the transformers’ ability to withstand thermal and mechanical stresses during fault conditions. Such short circuit tests are conducted at reputed government laboratories such as Central Power Research Institute and National High Power Test Laboratory, ensuring adherence to the highest standards of safety, reliability, and independent verification. It conducts short circuit testing at scale and, has tested over 200 ratings. It is one of five companies in India to have the short circuit test certification for 500 MVA 400 kV transformers that are used in the power transmission industry, which enables it to compete for large and high-value contracts. Such successful lab testing has positioned it to be among a select group of transformer manufacturers equipped to be eligible and qualify to bid for certain key orders. This is observed from an increase in its sales of 500 MVA 400 kV power transformers in Fiscal 2026.

Comprehensive presence across transformer manufacturing business and EPC business: In an endeavour to increase its total addressable market in the power transmission and power distribution sectors, it entered the EPC Business for substations in 2013 and forayed into EPC projects for transmission lines up to 400 kV class in 2021. Such integration of its EPC business enables it to provide single window solutions by undertaking EPC projects in addition to its transformer manufacturing business. Its EPC Business services for substations include turnkey installation of air and gas insulated substations and bay augmentation in existing substations up to 400kV class; and its EPC Business services for transmission lines include turnkey installation of transmission lines across 132 kV, 220 kV and 400 kV. Its EPC Business complements its Transformer Manufacturing Business by enabling the company to capitalise on hybrid contracts with integrated EPC and equipment supply requirements. This integrated positioning allows it to serve as a single-window provider, capturing a higher share of project value while deepening its engagement with customers which are seeking comprehensive solutions.

High quality transformers and capabilities for gas insulated switchgear (GIS): It manufactures five different types of transformers with customized technical specifications to address the energy needs of its end-user industries. It has developed technology for manufacturing transformers up to 500 MVA, 400 kV in-house, which ensures reliability and performance. It also has capabilities to manufacture GIS. GIS solutions are critical components for high-voltage power networks used in electrical substations and are characterized by features such as a low SF6 leakage rate and being environmentally friendly. It hase entered into a technical collaboration with CHEM in 2017, for offering advanced, and environmentally friendly solutions in GIS.

Risks and concerns

Significant revenue dependence on transformer manufacturing business: The company derives a significant portion of its revenue from the Transformer Manufacturing Business. It manufactures five different types of transformers with customized technical specifications to address the energy needs of industries as a part of its transformer manufacturing business. The company’s Transformer Manufacturing Business contributed 83.43%, 85.17%, and 51.75% of revenue from operations in Fiscal 2026, Fiscal 2025, and Fiscal 2024, respectively. Any failure to successfully manufacture and market its products which are part of the Transformer Manufacturing Business, whether on account of regulatory changes or changes in technologies, including creation of alternate technologies, or otherwise could adversely affect its business, financial condition, cash flows and results of operations.

Heavy dependence on top 10 customers: The company has derived a significant portion of its revenue from operations from its top 10 customers which exposes it to customer concentration risks. In the Fiscals 2026, 2025 and 2024, its top 10 customers’ contribution towards its revenue from operations was 93.16%, 93.88%, and 95.43%, respectively. It cannot assure that it will be able to successfully compete for tenders or if its customers will place further orders with the company in the future or that it will be able to maintain historic levels of business from them, or that it will be able to significantly reduce customer concentration in the future. The loss of business from any of these customers due to any reason could adversely affect its business, results of operations, financial condition and cash flows.

Reliance on government tender awards: A significant portion of its revenue is dependent on tenders being awarded by the government-controlled entities, which follow tendering process for determination of their suppliers. The company’s tenders awarded by government entities contributed 85.37%, 64.09%, and 90.10% to revenue from operations in Fiscal 2026, Fiscal 2025, and Fiscal 2024, respectively. Government bids are procured through competitive bidding process. Its bids may not always be accepted. It may not be able to qualify for, compete and win projects, which could adversely affect its business and results of operations. Further, it may not always be able to possess and maintain its pre-qualification capability for its Transformer Manufacturing Business and EPC Business. It may be adversely affected if it does not succeed in all or a majority of the contracts that it tenders for. Any adverse changes in government policies may lead to its agreements being restructured or renegotiated, which could adversely affect its revenues, cash flows or operations relating to existing contracts as well as its ability to participate in competitive bidding or bilateral negotiations for future contracts.

Significant geographic concentration in Rajasthan, Punjab and Gujarat: The company derives a significant portion of its revenue from operations in India from the states of Rajasthan, Punjab, and Gujarat. Rajasthan contributed the highest share of revenue from operations in Fiscal 2026 at 20.05%, followed by Punjab at 16.61% and Gujarat at 15.23%. Any disruptions in the region could have a material adverse effect on its business, financial condition and results of operations.  Additionally, changes in the policies of the state or local governments of these regions may require it to incur significant capital expenditure and change its business strategy. While it has not faced any such instances of geographical disruptions in the last three Fiscals, it cannot assure that it will be able to address its reliance on these few geographical regions, in the future.

Outlook

Kanohar Electricals is a leading manufacturer of reliable, cost effective and high-quality transformers for generation, transmission and distribution of electric power up to 500 MVA, 400kV. The manufacturing facilities of the company are ISO-certified including ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 and house testing laboratories which are accredited by the National Accreditation Board for Testing and Calibration Laboratories and its manufacturing facilities have a backward integrated setup that supports in-house production of critical components, such as transformer tanks and radiators. On the concern side, its business is dependent on suppliers to procure its raw materials. Further, it has not entered into long-term agreements with these suppliers, variations in supply and any loss of suppliers or interruptions in the timely delivery of raw materials or volatility in their prices could have an adverse impact on its business, financial condition and results of operations.

The issue has been offering 1,69,49,595 shares in a price band of Rs 601-632 per equity share. The aggregate size of the offer is around Rs 1,018.67 crore to Rs 1,071.21 crore based on lower and upper price band respectively. Minimum application is to be made for 23 shares and in multiples thereof thereafter. On performance front, total income increased by 44.95% from Rs 4,572.96 million in Fiscal 2025 to Rs 6,628.62 million in Fiscal 2026. Profit for the year was Rs 1,297.33 million in Fiscal 2026, compared to Rs 651.18 million in Fiscal 2025.

Meanwhile, its manufacturing facilities have a backward integrated setup that supports in-house production of critical components, such as transformer tanks and radiators. This backward integration reduces dependency on third party vendors, enhances quality control and optimizes cost and delivery timelines. Backward integration continues to be a cornerstone of its strategy enabling it to maintain control over key components and ensure consistent quality across its product range. As a part of this strategy, it intends to utilise a portion of the Net Proceeds to expand its backward integration facilities by replacing its current in-house set up for radiator manufacturing and assembling an automatic radiator manufacturing plant at its Gangol Manufacturing Facility. This investment will enable it to meet its forthcoming radiator requirement in-house, and provide it betters control over supply chain management, improve the operational efficiency and allow for stricter quality control.