Sumax Engineering shares to list today; 22% GMP signals strong debut
The Rs 53.40 crore IPO, which opened for subscription on August 25, 2026, received an overwhelming response from investors. The issue was subscribed 162.94 times overall, reflecting strong demand across investor categories.
By Ritesh Presswala, ETMarkets.com |
ETMarkets.com
Sumax Engineering is set to make its stock market debut today, September 2, 2026, with its shares commanding a 22% grey market premium (GMP) ahead of listing. The premium indicates that the NSE SME-listed stock could see a healthy opening, if grey market trends translate into actual market performance.
The Rs 53.40 crore IPO, which opened for subscription on August 25, 2026, received an overwhelming response from investors. The issue was subscribed 162.94 times overall, reflecting strong demand across investor categories.
The retail investor portion was subscribed 158.98 times, while the QIB category saw 121.28 times subscription. Demand was particularly strong among non-institutional investors (NIIs), whose portion was subscribed a staggering 270.70 times.
The IPO comprised a fresh issue of 43 lakh shares worth Rs 43.34 crore and an offer for sale (OFS) of 10 lakh shares worth Rs 10.06 crore.
Sumax Engineering had set the IPO price band at Rs 95–101 per share, with a lot size of 1,200 shares. At the upper price band, retail investors were required to invest a minimum of Rs 1,21,200 for one lot. For HNI investors, the minimum application was three lots, or 3,600 shares, involving an investment of Rs 3,63,600.
GYR Capital Advisors Pvt. Ltd. served as the book-running lead manager for the issue, while KFin Technologies Ltd. acted as the registrar.
Ahead of the public issue, Sumax Engineering also raised Rs 14.50 crore from anchor investors. The anchor bidding took place on August 24, 2026, a day before the IPO opened for public subscription.
With a strong subscription response and a 22% GMP, all eyes are now on Sumax Engineering’s listing today to see whether the stock can deliver the healthy debut that grey market trends are pointing towards.
Additionally, Rs 12.00 crore will be utilised to meet the company’s working capital requirements, with the remaining funds earmarked for general corporate purposes. Overall, the company intends to deploy Rs 33.51 crore towards capacity expansion, working capital needs and general corporate requirements.
Its manufacturing portfolio comprises adhesive tapes and die-cuts, pre-taped masking films, rubbing and polishing compounds, buffing and foam pads, reflective tapes, domes and graphics, as well as car care products. Under its trading business, the company supplies electrical and pneumatic tools, abrasive sheets, discs and rolls, body shop consumables, retail products, accessories and aerosol products.
Sumax Engineering operates two manufacturing facilities located in Sriperumbudur, Tamil Nadu, and IMT Manesar, Haryana. The company has a presence across 26 states and Union Territories in India and exports its products to international markets, including Thailand, South Korea, Russia, Turkey, China, Vietnam, the United States, Saudi Arabia and Taiwan. As of March 31, 2026, the company had a workforce of 121 employees.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
The Rs 53.40 crore IPO, which opened for subscription on August 25, 2026, received an overwhelming response from investors. The issue was subscribed 162.94 times overall, reflecting strong demand across investor categories.
The retail investor portion was subscribed 158.98 times, while the QIB category saw 121.28 times subscription. Demand was particularly strong among non-institutional investors (NIIs), whose portion was subscribed a staggering 270.70 times.
The IPO comprised a fresh issue of 43 lakh shares worth Rs 43.34 crore and an offer for sale (OFS) of 10 lakh shares worth Rs 10.06 crore.
Sumax Engineering had set the IPO price band at Rs 95–101 per share, with a lot size of 1,200 shares. At the upper price band, retail investors were required to invest a minimum of Rs 1,21,200 for one lot. For HNI investors, the minimum application was three lots, or 3,600 shares, involving an investment of Rs 3,63,600.
GYR Capital Advisors Pvt. Ltd. served as the book-running lead manager for the issue, while KFin Technologies Ltd. acted as the registrar.
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Ahead of the public issue, Sumax Engineering also raised Rs 14.50 crore from anchor investors. The anchor bidding took place on August 24, 2026, a day before the IPO opened for public subscription.
With a strong subscription response and a 22% GMP, all eyes are now on Sumax Engineering’s listing today to see whether the stock can deliver the healthy debut that grey market trends are pointing towards.
Objects of the Issue
The company plans to utilise the net proceeds from the issue to expand its manufacturing capabilities. Of the proceeds, Rs 4.89 crore will be allocated to Manufacturing Unit I in Rajasthan, while Rs 16.62 crore will be used for Manufacturing Unit II in Haryana.Additionally, Rs 12.00 crore will be utilised to meet the company’s working capital requirements, with the remaining funds earmarked for general corporate purposes. Overall, the company intends to deploy Rs 33.51 crore towards capacity expansion, working capital needs and general corporate requirements.
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Financial Performance
Sumax Engineering Ltd. reported a stable financial performance in FY26, with Total Income rising marginally by 1% to Rs 148.34 crore, compared with Rs 147.18 crore in FY25. Despite the modest growth in revenue, the company recorded a significant 28% increase in Profit After Tax (PAT), which rose to Rs 12.76 crore in FY26 from Rs 9.98 crore in FY25. The improvement highlights stronger profitability and enhanced operational efficiency.About Sumax Engineering Ltd.
Established in 1994, Sumax Engineering Ltd. is engaged in the manufacturing and trading of products catering to the Automotive OEM (Original Equipment Manufacturer) and Auto Refinish markets. The company operates across two business segments—manufacturing and trading.ADVERTISEMENT
Its manufacturing portfolio comprises adhesive tapes and die-cuts, pre-taped masking films, rubbing and polishing compounds, buffing and foam pads, reflective tapes, domes and graphics, as well as car care products. Under its trading business, the company supplies electrical and pneumatic tools, abrasive sheets, discs and rolls, body shop consumables, retail products, accessories and aerosol products.
Sumax Engineering operates two manufacturing facilities located in Sriperumbudur, Tamil Nadu, and IMT Manesar, Haryana. The company has a presence across 26 states and Union Territories in India and exports its products to international markets, including Thailand, South Korea, Russia, Turkey, China, Vietnam, the United States, Saudi Arabia and Taiwan. As of March 31, 2026, the company had a workforce of 121 employees.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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