Indo-MIM
IPO Size: Rs. 3,812 cr
- Fresh Issue of Rs. 500 cr to repay Rs. 400 cr of Rs. 1,212 cr gross debt as of 31.5.26
- Offer for Sale (OFS) of Rs. 3,312 cr, mainly by promoter (93% to shrink to 78%) and Rs. 112 cr by IIT Madras (liquidating half of its 1% stake)
Price band: Rs. 461-485 per share
M cap: Rs. 23,981 cr, implying 16% dilution
IPO Date: Thu 23rd Jul to Mon 27th Jul 2026, Listing Thu 30th Jul 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
World’s Largest Metal Injection Molding Manufacturer
Indo-MIM is a 30 year old Bengaluru based end-to-end manufacturer of precision engineering components using metal injection molding (MIM) technology. Company was founded by a technocrat alumnus of IIT-Madras and Harvard Business School.
Company has the world’s largest installed MIM capacity across 15 plants (6 in India, 6 in US, 2 in UK, 1 in Mexico) and it’s the largest in revenue terms too, with 6.8% market share. Company’s products are used in automotive (25% of revenue), defence (18%), medical (18%), aerospace (12%) and consumer industries, with 80% revenue generated from outside India from 45 countries in North America, Europe and SouthEast Asia.
High Margin Business
Due to advanced engineering technology, business earns superior margin of nearly 80% gross margin, 23% EBITDA and 13% net margin. Although down from 86% in previous fiscals, due to change in geographic (higher India revenue) and product mix (lower defence share), gross margin is still very healthy at 79% in FY26, on revenue of Rs. 4,193 cr.
While FY26 revenue grew 26% YoY, EBITDA excluding other income was up by only 6% YoY, with EBITDA of Rs. 993 cr, leading to 23% EBITDA margin. PAT was at Rs. 534 cr, translating into 13% net margin. FY26 EPS stood at Rs. 10.87, on equity of Rs. 48.4 cr (face value of Re.1 each). Company has a net worth of Rs. 2,819 cr, with gross debt of Rs. 1,212 cr, cash equivalents of Rs. 471 cr and RoE of 21%.
‘Left Money on the Table’
M-cap of Rs. 23,981 cr and Enterprise Value of Rs. 24,330 cr lead to a PE multiple of 40x, based on FY27E EPS of about Rs.12.25. There are no listed metal injection companies, but just for rough benchmarking, Mold-Tek Packaging is a plastic injection-molded company with Rs .900 cr topline, 19% EBITDA margin, 8% net margin is trading at a PE of 30x. Given Indo-MIM’s presence in high entry barrier sectors like defence, aerospace and sticky customer relationships in automotive, it deserves a much higher valuation multiple. We believe the PE multiple can expand by 15-20% in the near term.
Indo-MIM’s RoE may contract to 17-18% post IPO, but ~90% repeat business from existing customers provide healthy visibility, supported by double digit net margin. Moreover, capacity utilization is sub-40% in FY26, providing headroom for growth and margin expansion due to operating leverage.
Shareholder-Friendly Promoter
In Jun 2023, company raised Rs. 106 cr via preferential allotment to promoter at Rs. 496 per share. After 3 years, the IPO is priced at 2% lower, despite 20% growth in profits during this period, is an investor-friendly move.
In addition, promoter, an Indian-born American national, gifted 46 lakh shares or 0.95% stake in the company to IIT-Madras in Feb 2024. This speaks highly of the promoter values and quality – combining engineering prowess and business acumen with a big heart.
23rd Jul 2026 at 08:29 pm
22nd Jul 2026 at 08:09 pm