Sumax Engineering IPO day 1: The initial public offering of Sumax Engineering, a company that caters to the automotive OEMs (original equipment manufacturers) and auto refinishers, opened for public subscription on Tuesday, 25 August.
The IPO is witnessing healthy buying interest as it is already fully subscribed. Grey market trends also indicate the stock could list at a healthy premium on the NSE SME.
Meanwhile, ahead of the IPO, the company has raised ₹14.50 crore from anchor investors by allocating 14,35,200 shares at an offer price of ₹101 per share.
Sumax Engineering IPO GMP
According to grey market sources, the grey market premium (GMP) of Sumax Engineering shares was ₹35 on Tuesday morning. This indicates the stock could list at a premium of about 35% over its issue price.
Sumax Engineering IPO subscription status
By 1:05 PM on Tuesday, the issue had seen an overall subscription of nearly 1.5 times, with the retail portion booked nearly 3 times, and the segment reserved for NIIs subscribed to 0.70 times. QIB’s portion was yet to see any subscription till that time.
Sumax Engineering IPO details
1. Sumax Engineering IPO date: The SME IPO opened for subscription on Tuesday, 25 August. It will close on Friday, 28 August.
2. Sumax Engineering IPO size: The NSE SME IPO combines a fresh issue of 42,91,200 shares of face value of ₹10 each and an offer for sale (OFS) of 9,96,000 shares. From the fresh issue of shares, the company wants to raise ₹43.34 crore.
3. Sumax Engineering IPO price: The price band of the public issue has been fixed at ₹95 to ₹101 per equity share.
4. Sumax Engineering IPO objects: According to the RHP, the company will use the net proceeds from the issue to fund the construction of proposed manufacturing units in Rajasthan and Haryana. Some parts of the net proceeds will be used for meeting working capital requirements and for general corporate purposes.
5. Sumax Engineering IPO lot size: Retail investors can bid for a minimum and maximum of 2,400 shares.
6. Sumax Engineering IPO reservation: QIBs have been offered 9,74,400 shares. Including anchor investors, QIBs have been cumulatively offered 24,09,600 shares. Retail investors have been offered 16,92,000 shares. The company has reserved 7,27,200 shares for NIIs.
7. Sumax Engineering IPO allotment date: The company is expected to finalise the share allotment on Monday, 31 August. Successful bidders can expect shares of the company in their demat accounts on Tuesday, 1 September, and bidders who fail to get the allocation may get a refund on the same day.
8. Sumax Engineering IPO book-running lead manager and registrar: According to the issue’s Red Herring Prospectus (RHP), GYR Capital Advisors is the book-running lead manager, and Kfin Technologies is the registrar of the Sumax Engineering IPO.
9. Sumax Engineering IPO listing date: As per SEBI’s T+3 rule of IPO listing, the IPO is proposed for listing on the NSE SME on Wednesday, 2 September.
10. Sumax Engineering business overview: Sumax Engineering manufactures and trades a diverse range of products tailored for the automotive OEM and auto refinish market. As per the RHP, its manufacturing division specialises in producing high-quality adhesive tapes and die-cuts, rubbing and polishing compounds, buffing pads, reflective tapes and printing solutions, domes and graphics, as well as an extensive range of car care products.
The company’s revenue from operations for FY24 was ₹130.79 crore, which rose to ₹146.13 crore in FY25 and to ₹147.69 crore in FY26.
Profit was ₹7.43 crore in FY24, ₹9.98 crore in FY25, and ₹12.76 crore in FY26.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
