Maxwell Engineering NSE SME IPO Review by Dilip Davda
Issue Details / Capital History
The company is coming out with its maiden book building route IPO of 3648000 equity shares of Rs. 10 each to mobilize Rs 57.64 cr. at the upper cap. The company has announced a price band of Rs. 150 – Rs. 158 per share. The minimum application to be made is for 1600 shares and in multiples of 800 shares thereon, thereafter. The IPO opens for subscription on October 30, 2026, and will close on November 03, 2026. The IPO constitute 26.63% of the post-IPO paid-up capital of the company. The shares will be listed on NSE SME Emerge. From the net proceeds, it will utilize Rs. 18.00 cr. for capex on purchase of new machineries, lab equipment, and other utilitie4s, Rs. 6.50 cr. capex for construction of new office building and manufacturing facility, Rs. 4.30 cr. for repayment/prepayment of certain borrowings, Rs. 14.00 cr. for working capital, and the rest for general corporate purposes.
The IPO is solely lead managed by JDA Capital Services Ltd., (formerly known as Beeline Broking Ltd.), while KFin Technologies Ltd., is the registrar to the issue. JDA Capital Services Ltd., is a market maker, and also a syndicate member.
The company has issued initial equity capital at par value, and issued further equity shares at a fixed price of Rs.115.00 per share in March2025. It has also issued bonus shares in the ratio of 270 for 1 in February 2025, and 53 for 20 in April 2025. The average cost of acquisition of shares by the promoters is Rs. NIL, Rs. – (3.93), and Rs. – (4.10) per share.
Post-IPO, company’s current paid-up equity capital of Rs. 10.05 cr. (10050275 equity shares) will stand enhanced to Rs. 13.70 cr. (13698275 equity shares). Based on the upper band of the IPO pricing, the company is looking for a market cap of Rs. 216.43 cr.
On the financial performance front, for the last three fiscals, the company has reported a total income/net profit of Rs. 10.87 cr. / Rs. 3.16 cr. (FY24), Rs. 22.59 cr. / Rs. 9.18 cr. (FY25), and Rs. 30.76 cr. / Rs. 11.86 cr. (FY26). For 4M of FY27 ended on July 31, 2026, it earned a net profit of Rs. 3.05 cr. on a total income of Rs. 12.25 cr. While it reported growth in its top and bottom lines, the margin reported raise eyebrows and concern over its sustainability.
For the last three fiscals, the company has reported an average EPS of Rs. 9.48, and an average RoNW of 63.18%. The issue is priced at a P/BV of 5.69 based on its NAV of Rs. 27.78 per share as of July 31, 2026, and at a P/BV of 2.53 based on its post-IPO NAV of Rs. 62.46 per share (at the upper cap).
If we attribute FY27 annualized super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 23.65, and based on FY26 earnings, the P/E stands at 18.24 The issue appears fully priced, based on its average earnings.
For the reported periods, the company has posted PAT margins of 29.98% (FY24), 41.52% (FY25), 40.28% (FY26), 25.70% (4M-FY27), and RoCE margins of 62.96%, 53.31%, 38.46%, 9.87%, respectively, for referred periods.
The company has not declared any dividends for the reported periods of the offer document. It has already adopted a dividend policy in July 2025, based on its future prospects, and financial performance.
Comparison with Listed Peers
As per the offer document, the company has shown Kabra Extrusion, Omnitech Engg., Sunita Tools, as its listed peers. They are currently trading at a P/E of 625.0, 85.5, and 103.0 (as of October 28, 2026). However, they are not truly comparable on an apple-to-apple basis. This comparison appears to be an eyewash.
Maxwell Engg. Solutions Ltd. (MESL) is a precision engineering company engaged in the business of manufacturing, trading and servicing of critical components for underwater pelletizing systems. The company manufactures pelletizing die plates, pelletizing blades/knives, blade holders/cutter hub, tapped driving bush for underwater pelletizing systems and other spare items. To support its future growth and enhance manufacturing capabilities, it commenced operations at company-owned manufacturing facility situated at Plot Nos. 939 & 940, Waghodia GIDC, Vadodara, Gujarat with effect from July 01, 2025 and have gradually transitioned manufacturing operations from its earlier leased facility situated at Shed No. 336/34/1-A, GIDC, Makarpura, Vadodara-390010, Gujarat, India.
This expansion is expected to strengthen its production capabilities, improve operational efficiencies and progressively reduce dependence on trading activities. The company also undertakes customized manufacturing based on customer specifications and offer its products on a white-label basis, enabling customers to market such products under their own brands while leveraging its manufacturing expertise. The Company has entered into agreements with selected job workers to carry out specific processes related to its manufacturing operations. Under these arrangements, it supplies the required raw materials, while the job workers undertake operations such as machining, fabrication, welding, painting and other ancillary activities.
The company also outsources works requiring heat treatment, hardening, coating wherever required as don't have the in-house facilities and to keep its manufacturing process clean, non-polluting with zero emissions. MESL also offer services, including refurbishing & repair services, intermediary support & management consulting. Its refurbishment services for used die plates help customers significantly reduce costs while improving product efficiency. Additionally, it acts as an intermediary between CJTEK and third parties for the marketing and supply of CJTEK components. The company also provides management consulting services for identifying and developing new customer relationships. It also represents CJTEK in exhibitions and market its product.
MESL also undertakes selective trading of complementary components such as blades/knives, driving bushes, blade holders and related items to meet customer requirements and provide comprehensive solutions. Its manufacturing facility is equipped with modern precision machining equipment and in-house testing facilities to support the manufacture of high-quality precision-engineered components. Its products cater to applications across polymer compounding, masterbatches, engineering plastics, cable compounds, specialty polymers and plastics recycling industries. Its Manufacturing facility are equipped with requisite machineries like VMC, CNC, Furnace Machine, Milling Machine, Wire cuts Machine, EDM Machine, Lathe Machine, Surface grinders Machine and other machines tools to manufacture precision engineering components and in-house testing system to keep a constant check on quality of its product.
The company has expanded globally, serving the customers spread over the countries like the USA, Germany, Netherland, Israel, Saudi Arabia, Oman, Indonesia, Japan, Luxembourg, Vietnam, Italy, Switzerland, Austria, South Africa, Australia, Thailand, etc. Its product includes the die plates for various applications like white, black, filler, additives, color masterbatches, cable compounds like HFFR, semiconductive, PVC, XLPE, HDPE blends, fluoropolymers like PFA, FEP, and PVDF, engineering compounds like BS, PA, PBT, PC, and PE, TPR, TPU, TPV, PET/PA resin productions, post-consumer and post-industrial recycling of ET, PP, PE, PVC, and many more applications.
MESL is certified with ISO 9001:2015 for manufacturing and Supply of Die Plates/Heads, Pelletizing Blades/Knives, Blade Holders, Tapped Driving Bushes, which reflects its commitment to ensuring that it maintains quality standards across all operations. Further strengthening its commitment to quality and sustainable manufacturing, the Company was awarded the ZED Bronze Certification under the MSME Sustainable (ZED) Certification Scheme on November 28, 2025. As of September 30, 2026, it had 108 employees on its payroll. (including 37 contract workers).
According to the management, its current revenue mix is 90% global and 10% local and they aims to a comfortable level of 70% global and 30% local with introduction of big size components that enjoys heavy margins and thus the company will be in a position to maintain its margin levels, if not improved. Geopolitical tension has impacted its global business to some extent and hence, it is planning to develop other geographies to compensate the impact it might face with escalation of geopolitical tension.
Merchant Banker's Track Record
This is the 1st mandate from JDA Capital Services Ltd. (erstwhile known as Beeline Broking Ltd), in the last three fiscals (including the ongoing one). It has no track record for the said periods. For past mandates, it has average track records.
Conclusion
MESL is engaged in the business of manufacturing, trading and servicing critical components for underwater pelletizing systems. Its current mix of revenue is 90% global and 10% domestic. The company has created a niche place in its segment. Based on its recent average financial data, the issue appears fully priced. Merchant banker has an average track record for its past mandates. Well-informed investors may park moderate funds for medium term.
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
