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Indo-MIM Ltd. (IML) supplies end-to-end options for the manufacture of precision engineering parts utilizing metallic injection molding (“MIM”) expertise. Its capabilities embody mildew designing and tooling, coupled with ending and meeting operations. With over 25 years of expertise within the MIM trade, it’s the largest producer globally of precision engineering parts utilizing MIM expertise, with a market share of 6.8% when it comes to income from MIM in Calendar Year 2025 and have held this place for the final six years. (Source: F&S Report)
Over the years, the corporate has applied a spread of producing applied sciences to boost its product choices to prospects. In addition to MIM expertise, it leverages applied sciences reminiscent of funding casting, precision machining, ceramic injection molding and metallic three-dimensional (“3D”) printing. These applied sciences have strengthened its manufacturing capabilities and enabled to handle the evolving wants of shoppers throughout industries. IML’s product portfolio caters to automotive, defence, medical, shopper, and aerospace sectors, and it manufactured over 9,000 kinds of merchandise in Fiscal 2026.
As of the date of this Red Herring Prospectus, the corporate operates 15 manufacturing amenities, of which, six are positioned in India, six within the United States, two within the United Kingdom (“UK”) and one in Mexico. Over the years, it has expanded manufacturing capabilities and as of March 31, 2026, it had the world’s largest put in capability for MIM merchandise. (Source: F&S Report) Its dual-shore manufacturing, with manufacturing capabilities each in India and nations such because the United States, the UK and Mexico coupled with its scale of operations, technical know-how and mildew design capabilities, helps it compete with different world precision engineered product producers. IML’s manufacturing mannequin permits it to serve each Indian and world OEMs, serving to the corporate profit from economies of scale. Its manufacturing capabilities allow it to cater to the wants of shoppers who require home manufacturing for his or her parts. Additionally, having a neighborhood base provides extra provide chain safety for purchasers who don’t essentially require home sourcing, in case of unexpected occasions.
Its numerous capabilities permit IML to service the shoppers globally, which has established it as an export-oriented firm with prospects throughout North America, Europe and South East Asia. Its manufacturing amenities are fungible as a result of similarity of the manufacturing processes employed within the manufacturing of merchandise for various sectors. This flexibility permits it to regulate manufacturing capability based mostly on trade calls for, enabling it to serve varied finish customers. Its amenities are licensed to worldwide high quality administration requirements, together with NADCAP, IATF 16949:2016, AS 9100:2016, ISO 9001:2015, ISO 14001:2015, ISO 13485:2016, ISO 27001:2022 and ISO 45001:2018.
The firm has world gross sales capabilities with a devoted gross sales staff that gives buyer assist. As of March 31, 2026, it had three gross sales places of work in China, Germany and the United States, with 13 gross sales representatives in Czech Republic, France, Italy, Japan, South Korea, Singapore, Israel, Poland and Turkey. It manufactures and provides important and complicated merchandise for automotive, defence, medical, shopper and aerospace sectors, that are required to fulfill exact and particular necessities together with when it comes to high quality, measurements and tolerances. According to the F&S Report, the precision parts manufacturing trade has important limitations to entry. These limitations embody the necessity for a better preliminary funding in manufacturing molds, in addition to the demand for complicated execution and technical expertise for the event of every new product for purchasers. The firm differentiate itself by way of a mix of things, together with its diversified manufacturing applied sciences, together with MIM, funding casting, precision machining, ceramic injection molding and metallic 3D printing, expertise in mildew designing and tooling and a various product portfolio.
This permits it to fulfill buyer necessities and construct long-standing relationships. It has long-term relationships with a number of Indian and world OEMs throughout varied industries. As per the F&S Report, enterprise relationships in its trade are characterised by a excessive charge of repeat orders and minimal inclination by OEMs to modify suppliers. Its monitor document of producing merchandise to fulfill buyer necessities helps it retain present prospects and entice new prospects. During Fiscal 2026, IML served greater than 1,100 prospects. Its variety of instruments developed elevated from 551 (FY24) to 608 (FY26). As of March 31, 2026, it had 4424 staff on its payroll and extra 2766 contract labourers.
The firm is popping out with its maiden e book constructing route combo IPO of 78600300 fairness shares (price Rs. 3812.11 cr. on the higher cap). The IPO consists of contemporary fairness challenge price Rs. 500.00 cr. (for approx. 10309278 fairness shares on the higher band), and an Offer for Sale (OFS) of 68291022 fairness shares (price Rs. 3312.11 cr. on the higher cap). The firm has introduced a value band of Rs. 461 – Rs. 485 per fairness shares of Re. 1 every. The challenge opens for subscription on July 23, 2026, and can shut on July 27, 2026. The minimal software to be made is for 30 shares and in multiples thereon, thereafter. Post allotment, shares shall be listed on BSE and NSE. The challenge constitutes 15.90% of the post-IPO paid-up fairness capital. From the web proceeds of the contemporary challenge, the corporate will make the most of Rs. 400.00 cr. for reimbursement/prepayment of sure borrowing, and the remaining for common company functions.
The firm has reserved 200000 fairness shares for its eligible staff and providing them a reduction of Rs. 45 per share. From the remaining, it has allotted no more than xx % for QIBs, and never lower than 35% for Retail traders, and never lower than 15% for HNI traders.
The 5 joint Book Running Lead Managers (BRLMs) to this challenge are HDFC Bank Ltd., Axis Capital Ltd., ICICI Securities Ltd., Kotak Mahindra Capital Co. Ltd., SBI Capital Markets Ltd., and MUFG Intime India Pvt. Ltd., is the registrar to the problem. HDFC Securities Ltd., Kotak Securities Ltd., SBICAP Securities Ltd., and Investec Capital Services (India) Pvt. Ltd. are syndicate members.
The firm has issued preliminary fairness shares at par worth, and has issued additional fairness shares within the value vary of Rs. 5 – Rs. 496 per share (based mostly on FV of Re. 1) between July 2006 and June 2023. It has additionally issued bonus shares within the ratio of three for 1 in September 2020. The common value of acquisition of shares by the promoters/promoting stakeholders is Rs. NIL, Rs. 1.25, Rs. 2.67, and Rs. 2.82, per share.
Post-IPO, its present paid-up fairness capital of Rs. 48.42 cr. will stand enhanced to Rs. 49.45 cr. Based on the higher cap of the worth band, the corporate is on the lookout for a market cap of Rs. 23981.42 cr.
On the monetary efficiency entrance, for the final three fiscals, the corporate has (on a consolidated foundation) posted a complete revenue/web revenue, of Rs. 2900.38 cr. / Rs. 283.73 cr. (FY24), Rs. 3373.97 cr. / Rs. 423.73 cr. (FY25), and Rs. 4320.70 cr. / Rs. 533.54 cr. (FY26). The firm posted development in its prime and backside traces for the reported intervals. Its consolidated contingent liabilities of Rs. 227.45 cr. as of March 31, 2026 elevate concern. Higher commerce receivables elevate alarm.
For the final three fiscals, the corporate has posted a median EPS of Rs. 9.44 (Basic) and a median RoNW of 19.61 %. The challenge is priced at a P/BV of 8.33 based mostly on its NAV of Rs. 58.24 as of March 31, 2026, and at a P/BV of seven.22 based mostly on its post-IPO NAV of Rs. 67.13 per share on the higher value.
If we attribute FY26 earnings to its post-IPO totally diluted paid-up fairness capital, then the asking value is at P/E of 44.95. Based on FY25 earnings, the P/E stands at 56.59. The challenge aggressively priced.
For the reported intervals, the corporate has posted PAT margins of 9.88 % (FY24), 12.73% (FY25), 12.72% (FY26), and RoCE margins of 19.59%, 23.51%, 26.60%, respectively for the referred intervals.
All quantities in Indian Rupees crores
The firm has paid a dividend of 775% (FY24), and 591% (FY25). It has already adopted a dividend coverage in February 2025, based mostly on its monetary efficiency and future prospects.
As per the provide doc, the corporate has no listed friends in India, however Jiangsu Glan Technology Co. Ltd. – a world listed participant is the one peer.
The 5 BRLMs related to this challenge have dealt with 106 IPOs within the final three fiscals, out of which 33 points closed beneath the provide value on the itemizing date.
IML is likely one of the main end-to-end answer suppliers within the manufacturing of precision engineering parts utilizing metallic injection molding. As of March 31, 2026, it needed to its credit score 608 device developments, serving greater than 1100 prospects globally. It enjoys most most well-liked associate by person trade. It posted regular development in its prime and backside traces regardless of rising competitors. As per RHP information, its world peer is buying and selling round 148 P/E. Based on its latest monetary information, the problem seems aggressively priced. Well-informed traders might park funds for medium to long run on this expensive guess.
Dilip Davda is a veteran monetary journalist related to the Indian inventory market since 1978. He has been contributing to print and digital media on capital markets, insurance coverage, and finance since 1985.
He is widely known for reviewing public points and non-convertible debentures (NCDs) within the major market. Drawing on over three many years of market expertise and shut interplay with service provider bankers, his evaluations deal with detailed elementary and monetary evaluation of firms, with a particular emphasis on SME public points.
Disclaimer: The data offered herein is solely for academic and informational functions and doesn’t represent a suggestion, solicitation, or advice to purchase or promote any securities. Readers are suggested to seek the advice of a professional monetary advisor earlier than making any funding choices. Investments within the securities market are topic to market dangers. The creator doesn’t intend to spend money on the securities mentioned.
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