Indo-MIM IPO opens today at ₹461-485 price band

The ₹3,812-crore initial public offering (IPO) of Indo-MIM opens today at July 23 and closes on July 27 at a price band of ₹461-485 a share. Up to 50 per cent of the net offer has been reserved for Qualified Institutional Buyers (QIBs), 15 per cent for non-institutional Investors and the remaining 35 per cent for retail investors. Investors can bid for a minimum of 30 equity shares and in multiples of 30 shares thereafter.

The IPO is a combination of fresh issue of equity shares worth ₹500 crore, and an offer-for-sale of 6.82 crore shares. Green Meadows Investments, Anuradha Koduri, and Indian Institute of Technology Madras are the selling shareholders in the offer-for-sale.  

Bengaluru-based Indo-MIM, a global leader in manufacturing precision engineering components using metal injection molding technology, has raised ₹1,141 crore via anchor book on July 22. Total 92 anchor investors participated in the anchor book on Wednesday, picking up 2.35 crore equity shares worth ₹1,140.99 crore at the upper end of price band. “Of the total allocation to anchor investors, 1.31 crore equity shares were allocated to 23 domestic mutual funds including ICICI Prudential AMC, HDFC MF, SBI Mutual Fund, Kotak Mahindra AMC, Aditya Birla Sun Life AMC, Axis MF, HSBC MF, Mirae Asset, Quant MF, LIC MF, and Invesco, which applied through their 60 schemes,” Indo-MIM in its filing to exchanges said.

The company plans to utilise ₹400 crore from the fresh issue proceeds towards pre-payment or repayment of certain outstanding borrowings, while the remaining amount will be used for general corporate purposes.

Incorporated in 1996, Indo MIM manufactures precision engineering components using Metal Injection Molding (MIM) technology and provides end-to-end manufacturing solutions. Besides MIM, the company also uses investment casting, precision machining, ceramic injection molding and metal 3D printing technologies to cater to the automotive, defence, medical, consumer and aerospace sectors.

Indo MIM operates 15 manufacturing facilities globally — six in India, six in the US, two in the UK and one in Mexico. It manufactured more than 9,000 product types in FY26 across its automotive, defence, medical, consumer and aerospace businesses.

For FY26, the company reported revenue from operations of ₹4,193 crore and profit after tax of ₹533 crore.

Choice Broking: At the upper price band, IML is valued at a post-issue P/E of 39.2x based on its adjusted FY26 EPS of ₹12.37. While the issue is priced at a premium, we believe the valuation is supported by the company’s position as the world’s largest MIM manufacturer, strong competitive moat, integrated manufacturing platform and diversified presence across high-growth sectors such as automotive, aerospace, defence and medical. The company has consistently delivered healthy profitability, with an EBITDA margin of 25.5%, PAT margin of 12.7%, and robust return ratios (ROE: 21.7%, ROCE: 20.8% and ROIC: 17.0%). Additionally, debt repayment from the IPO proceeds is expected to reduce finance costs and provide further support to earnings growth.

Backed by favourable industry tailwinds, global manufacturing capabilities and sustained capacity expansion, we believe the company is well-positioned for long-term growth. Accordingly, we assign a “SUBSCRIBE” rating to the issue.