Highlights
| Issue Size –: 7,86,00,300 shares | Issue Open/Close – 23 July / 27 July, 2026 |
| Price Band (Rs.) 461 – 485 | Issue Size (Rs.) – 38,110 mn |
| Face Value (Rs) 1 | Lot Size (shares) 30 |
Indo-MIM, incorporated in 1996, manufactures precision engineering components using metal injection molding (MIM) technology. They are the largest manufacturer globally of precision engineering components using MIM technology, with a market share of 6.8 pct in terms of sales from MIM in CY25 and have held this position for the last six years.
Indo MIM engaged in manufacturing and supply of precision components for OEMs in India and internationally across various industries such as: (i) automotive; (ii) defence; (iii) medical products; (iv) consumer products; and (v) aerospace. In FY26 the company manufactured over 9000 types of products.
The company differentiate themselves through a combination of factors, including their diversified manufacturing technologies, including MIM, investment casting, precision machining, ceramic injection molding and metal 3D printing, experience in mold designing and tooling and a diverse product portfolio.
Out of the total proceeds of Rs. 38,110 mn, Rs. 4000 mn would go towards repayment or pre-payment, in full or in part, of certain of their outstanding borrowings availed by the Company, Rs. 990 mn would go towards general corporate purpose and Rs. 33,110 mn go to existing selling shareholders of the company.
Key Highlights
- MIM is primarily produced in Asia, with China, India, Japan, Taiwan, and Singapore leading the pack. The market for MIM products is expected to grow at a CAGR of 9.2 pct over CY25-30, to reach USD 6.2 bn by CY30. Key drivers are growing demand in industry segments, such as automotive, aerospace, defence, consumer electronics and medical which expected to grow 9 pct CAGR, 9.2 pct CAGR, 8.8 pct CAGR, 8.2 pct CAGR and 11.6 pct CAGR over same period.
- Indo-MIM operate 15 manufacturing facilities, of which, 6 are located in India, 6 in the United States (US), 2 in the United Kingdom (UK) and one in Mexico. The strategic location of their manufacturing facilities in India provides them with cost and logistical advantages. Their dual-shore manufacturing, with manufacturing capabilities both in India and countries such as the US, UK and Mexico, enables them to serve both Indian and global OEMs, leading to benefit from economies of scale.
- Indo-MIM focus on direct sales to their customers and leverage existing relationships for sales of products. Over the last 3 years, they have supplied products to customers in 55 countries. More than 75 pct of sales of the company comes from export while India contributes 22.8 pct of total sales.
- Indo-MIM focus on efficiency, productivity improvements and cost rationalization to keep their operating costs under control. Their experience in manufacturing components using MIM technology allows them to achieve cost-effective mass production.
- Indo-MIMs’ key growth strategies include (i) Continue to acquire new customers and increase wallet share by leveraging existing relationships (ii) Continue to leverage diversified technologies to expand product portfolio and capitalize on industry tailwinds (iii) Retain and strengthen technological leadership through continued focus on engineering capabilities (iv) Continue to reduce operating costs and improve operational efficiencies (v) Expand business and geographical footprint organically and inorganically.
- Sales of the company have grown by 20.9 pct CAGR sales over FY24-26 while EBITDA and profit registered 20 pct CAGR and 37.1 pct CAGR over same period. In FY26, the company posted sales of Rs. 41,930 mn, up 25.9 pct YoY, EBITA increased by 14.8 pct YoY to Rs. 10,709 mn and profit rose to 5,335 mn, showing growth of 25.9 pct YoY.
Key Risk
- Pricing pressure from customers may adversely affect ability to increase prices, which may in turn adversely affect Indo-MIM’s business.
- The global manufacturing industry in general, and certain of its sectors in particular, tend to be cyclical or seasonal. A downturn or weakness in any particular sector, or in overall economic activity, could have an adverse effect on their business.
Financial Performance
| Particulars | FY24 | FY25 | FY26 |
| Sales (Rs. mn) | 28,704 | 33,296 | 41,930 |
| EBITDA (Rs. mn) | 7,435 | 9,326 | 10,709 |
| EBITDA Margin (%) | 25.90% | 28.01% | 25.54% |
| Profit (Rs. mn) | 2,837 | 4,237 | 5,335 |
| Profit Margin (%) | 9.88% | 12.73% | 12.72% |
| ROE (%) | 14.01% | 19.94% | 21.26% |
| ROCE (%) | 19.59% | 23.51% | 26.60% |
| Fixed Asset Turnover (x) | 1.25 | 1.24 | 1.33 |
| Net Debt to EBITDA (x) | 1.15 | 1.15 | 0.65 |
Source: – RHP.
Valuation
Indo MIM is the largest manufacturer globally of precision engineering components using MIM technology, with a market share of 6.8 pct in terms of revenue from MIM in CY 2025 and has held this position for the last six years. Indo MIM is well positioned to capitalize on the trend of OEMs shifting to global platforms and consolidating their supplier bases to capture greater total value content in individual programs. At the upper end of the price of Rs. 485, the issue quotes at PE of 45x on FY26 post issue capital. The issue looks reasonably priced against its Chinese peer. Only high-risk investors may subscribe this issue from a longer-term perspective.
Disclaimer: The views shared in blogs are based on personal opinions and do not reflect the company’s views. Investment involves risk, and it is advisable to consult a financial advisor before making any investment through the app. The decision to invest is solely that of the investor, and the company or its communication cannot be held responsible for it.
