Sumax Engineering IPO
Sumax Engineering LtdSME
This IPO closed on 28 Aug 2026.
- Open date
- 25 Aug 2026
- Close date
- 28 Aug 2026
- Min. Investment
- ₹2,42,400
- Lot Size
- -
- Fresh Issue
- ₹43.34 Cr
- Price Range
- -
- Face Value
- -
- IPO Document
- DRHP - PDF(opens in a new tab)
Subscription rate
- Qualified Institutional Buyers121.28x
- Non-Institutional Investors198.39x
- Retail-Individual Investors158.98x
- Total151.74x
Schedule
- Completed: IPO open date25 Aug 2026
- Completed: IPO close date28 Aug 2026
- Completed: Allotment date31 Aug 2026
- Completed: Funds unblock or debit1 Sep 2026
- Current step: Tentative listing date2 Sep 2026
About
Promoter shareholding in Sumax Engineering Ltd, before and after the issue.
| Promoter | Pre-issue shares | Pre-issue % | Post-issue shares | Post-issue % |
|---|---|---|---|---|
| Vimla Mehta | 9,87,900 | 6.71% | 8,91,900 | 4.46% |
| Sumer Chand Mehta | 10,500 | 0.07% | 10,500 | 0.05% |
| Suditi Mehta | 3,150 | 0.00% | 3,150 | 0.00% |
| Pushpa Sampat Lodha | 70 | 0.00% | 70 | 0.00% |
| Seema Mohnot | 24,070 | 0.00% | 24,070 | 0.00% |
Sumax Engineering IPO Strengths & Risks
- Experienced Management Team.
- Long standing relationships with customers.
- Consistent financial performance.
- Risks Relating to the Business: Rising costs, supply disruptions, and import restrictions on essential raw materials may impact the company's expenses, timelines, and overall financial performance.
- Risks Relating to the Business: The company's Registered Office and Manufacturing unit from where its operates is not owned by it.
- Risks Relating to the Business: Shifting of leased manufacturing facility and integration with proposed Manufacturing Unit II.
- Risks Relating to the Business: The company is significantly dependent on imports for its raw material procurement, which exposes it to risks arising from geopolitical developments, trade sanctions, international trade tensions, and foreign exchange fluctuations.
- Risks Relating to the Business: The company is subject to strict quality requirements and any failures by it or its suppliers to comply with quality standards may lead to cancellation of existing and future orders, product recalls, product liability, warranty claims and other disputes and claims.
- Risks Relating to the Business: The company's individual Promoters plays key role in its functioning and the company heavily relies on their knowledge and experience in operating the company's business and therefore, it is critical for its business that the company's Promoters and Executive Directors remain associated with it. The company's success also depends upon the services of its key managerial personnel and the company's ability to attract and retain key managerial personnel and its inability to attract them may affect the company's operations.
- Risks Relating to the Business: The company relies on its in-house designing and execution team for manufacture. Loss of employee(s) may have an adverse effect on the execution of the company's projects.
- Risks Relating to the Business: A substantial portion of the company's revenue is derived from its top 10 customers. The loss of business from one or more of these customers could negatively impact the company's revenue and profitability.
- Risks Relating to the Business: The company's business is heavily reliant on the performance of the broader automotive industries, both in India and globally. A downturn in these sectors could adversely affect its business and profitability.
- Risks Relating to the Business: The company's Group company is engaged in similar line of business as of its. There is a non-compete agreement between the company and such other entity. Its cannot assure that the company's Promoters will not be in favour of the interests of such Companies over its interest or that the said entities will not expand which may increase the company's competition, which may adversely affect business operations and financial condition of the company.
- Risks Relating to the Business: The company's promoters and directors have other interests in the company, apart from the normal remuneration, benefits, or reimbursement of expenses incurred.
- Risks Relating to the Business: The company does not have binding agreements with its customers. If they decide to source their requirements elsewhere, its business and operational results could be negatively impacted.
- Risks Relating to the Business: Resignation of previous statutory auditor may adversely affect investor perception and operations.
- Risks Relating to the Business: The Company is party to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.
- Risks Relating to the Business: The company's business requires significant working capital, and an increase in the company's working capital cycle has previously resulted, and may in the future result, in a decrease in the company's net cash flows from operating activities. Any further strain on its liquidity could adversely affect the company's business and financial condition.
- Risks Relating to the Business: The majority of the company's product sales and services is concentrated in the region of Tamil Nadu and Haryana. For the Fiscal 2026, Fiscal 2025 and Fiscal 2024 the company's revenue from sale of products and services in Tamil Nadu and Haryana accounted for a total of 48.79%, 47.97% and 48.48% of its revenue from operations, respectively any adverse developments affecting the company's sales in these regions could have an adverse impact on its business, financial condition, results of operations and cash flows.
- Risks Relating to the Business: Under-utilization of the company's manufacturing capacities could negatively impact its business, future prospects, and financial performance. Additionally, the capacity utilization data in this Red Herring Prospectus is based on certain assumptions and rounding adjustments. Actual future production and capacity utilization may differ from these estimates.
- Risks Relating to the Business: Any non-compliance or delays in GST Return Filings of may expose it to penalties from the regulators.
- Risks Relating to the Business: The company, incorporated in 1994, has certain documents filed with the Registrar of Companies (RoC) and other corporate records that are currently not traceable. Its cannot guarantee that these forms or records will be available now or in the future.
- Risks Relating to the Business: The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
- Risks Relating to the Business: The company's business is dependent on its ability to attract and retain qualified employees, particularly technical, and any inability to manage employee attrition effectively may adversely affect the company's business, financial condition and results of operations.
- Risks Relating to the Business: There have been certain instances of delays in filing statutory forms which have been subsequently filed by payment of an additional fee as specified by RoC. Its cannot assure you that no regulatory action will be initiated against it and that no penalties will be imposed on the company on account of these lapses.
- Risks Relating to the Business: The company's business is dependent and will continue to depends on its manufacturing facilities, and the company is subject to certain risks in its manufacturing process. Any slowdown or shutdown in the company's manufacturing operations or strikes, work stoppages or increased wages demands by its employees that could interfere with the company's operations could have an adverse effect on its business, financial condition and results of operations.
- Risks Relating to the Business: Fraud, theft, employee negligence or similar incidents may adversely affect the company's results of operations and financial condition.
- Risks Relating to the Business: The company's insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on the company's business.
- Risks Relating to the Business: The company requires certain approvals and licenses in the ordinary course of business and is required to comply with certain rules and regulations to operates the company's business, any failures to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect its operations.
- Risks Relating to the Business: The company is subject to impact of foreign exchange fluctuation. Any significant movement in foreign exchange rates, could adversely impact its revenue from exports and costs of sourcing raw materials through imports, which in turn could adversely impact the company's operations.
- Risks Relating to the Business: The company faces competition from both domestic and multinational corporations, and its inability to compete effectively could have a material adverse impact on the company's business, financial condition, and results of operations.
- Risks Relating to the Business: The average cost of acquisition of Equity Shares by the company's Promoters is lower than the Offer Price.
- Risks Relating to the Business: The company's inability to collect receivables and defaults in payment from its customers could result in the reduction of the company's profits and affect its cash flows.
- Risks Relating to the Business: The company's Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the offer, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Risks Relating to the Business: The company's contingent liabilities as stated in its Restated Financial Statements could adversely affect the company's financial condition.
- Risks Relating to the Business: If the company fails to manage its growth effectively and expand into new markets, the company's business, future financial performance, and operational results could be significantly and adversely impacted.
- Risks Relating to the Business: The company will not receive any proceeds from the Offer for Sale portion.
- Risks Relating to the Business: The company's ability to pay any dividends will depends upon future earnings, financial condition, cash flows and working capital requirements.
- Risks Relating to the Business: Activities involving the company's manufacturing process can cause injury to people or property in certain circumstances. A significant disruption at any of its manufacturing facilities may adversely affect the company's production schedules, costs, sales and ability to meet customer demand.
- Risks Relating to the Business: The company requires certain approvals and licenses in the ordinary course of business and is required to comply with certain rules and regulations to operates its business, any failures to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect the company's operations.
- Risks Relating to the Business: The company may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and other proprietary rights.
- Risks Relating to the Business: The company has issued Equity Shares during the last one year at a price that may be below the Offer Price.
- Risks Relating to the Business: Operating as a publicly listed company could requires greater resource allocation and adherence to enhanced regulatory and compliance standards.
- Risks Relating to the Business: The company has not independently verified certain data in this Red Herring Prospectus.
- Risks Relating to the Business: Any future issuance of Equity Shares may dilute your shareholdings, and sale of the Equity Shares by the company's major shareholders may adversely affect the trading price of its Equity Shares.
- Risks Relating to the Business: The company's inability to effectively implement its business and growth strategy may have an adverse effect on the company's operation and growth.
- Risks Relating to the Business: In the event there is any delay in the completion of the Offer, or delay in schedule of implementation, there would be a corresponding delay in the completion of the objects of this offer which would in turn affect the company's revenue and results of operations.
- Risks Relating to the Business: There is no guarantee that the Equity Shares issued pursuant to the Offer will be listed on the Emerge Platform of NSE Limited in a timely manner, or at all.
- Risks Relating to the Business: There are restrictions on daily movements in the price of the Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
- Risks Relating to the Business: The Objects of the Offer for which funds are being raised, are based on the company's management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Offer".
- Risks Relating to the Business: Further, pursuant to Section 27 of the Companies Act 2013, any variation in the objects would requires a special resolution of the Shareholders and the company's Promoters or controlling Shareholders will be required to provide an exit opportunity to the Shareholders of the Company who does not agree to such proposal to vary the objects, in such manner as may be prescribed in future by the SEBI.
- Risks Relating to the Business: Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
- Risks Relating to the Business: QIBs and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid, and Retail Individual Bidders are not permitted to withdraw their Bids after the Bid/ offer Closing Date.
