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Sumax Engineering

· NSE open
Closes in 3 days · 28 Aug 2026
₹35
GMP* · 25 Aug, 10:20 pm
Price Band
₹95 – ₹101
Issue Size
₹53.4 Cr
1 lot at upper band
₹1,21,200
Lot Size
1,200
Open
25 Aug 2026
Close
28 Aug 2026
Allotment
—
Listing
02 Sept 2026

Scheduled dates

  1. Open
    25 Aug 2026
  2. Close
    28 Aug 2026
  3. Refund
    01 Sept 2026
  4. Demat credit
    01 Sept 2026
  5. Listing
    02 Sept 2026

GMP Trend*

Daily grey market premium (₹). Unofficial.

Latest GMP: ₹35 8 sessions

Subscription (times)

Latest per-category subscription · as of 25 Aug, 06:56 pm IST.

QIB 0.00x
NII 2.29x
BHNI 1.95x
SHNI 2.91x
RII 5.77x
Total 3.24x

About Sumax Engineering

Sumax Engineering Limited is engaged in both manufacturing and trading of automotive products for OEM and Auto Refinish markets. The company's manufacturing division specializes in adhesive tapes and die-cuts, rubbing and polishing compounds, buffing pads, reflective tapes, printing solutions, domes and graphics, and car care products. The company also trades in electrical and pneumatic tools, abrasive sheets, body shop consumables, retail products and aerosol products, serving the evolving demands of automotive manufacturers and aftermarket industry.

www.sumaxindia.com ↗

Strengths

  • Experienced Promoters, management and operating team
    The company has promoters with wide experience in Automotive OEM field, supported by a diverse Board of Directors and robust management team with over 30 years of extensive experience in automotive OEM manufacturing industry.
  • Comprehensive Product Range
    The company's portfolio encompasses broad spectrum of industrial specialty adhesive tapes, rubbing and polishing compounds, car care products, polishing and buffing pads, reflective tapes, and printing domes with ISO 9001:2015 and IATF 16949:2016 accreditation.
  • Strong Industry Relationships
    The company has established long-term partnerships with OEMs that enhance credibility and foster trust, enabling close collaboration to address evolving market needs and drive innovation in the automotive sector.
  • Advanced In-House Processing Facilities Focused on Cost Competitiveness
    The company's production facilities are equipped with cutting-edge machinery and technology, adhering to rigorous hygiene and safety protocols while streamlining processes to minimize waste and enhance resource utilization.
  • Tailored Product Design
    The company offers tailored product designs and sizes with global presence in countries like Thailand, South Korea, Russia, Turkey, China, Vietnam, USA, Saudi Arabia and Taiwan, providing unmatched flexibility to meet evolving client needs.
  • Efficient Logistics and Supply Chain Management
    The company excels in efficient logistics implementing Kanban System or Just-in-Time (JIT) inventory system, effectively minimizing stock levels while maintaining ability to meet customer demands promptly.
  • Strong Financial performance
    The company achieved revenues from operations of Rs. 14,769.06 Lakhs, Rs. 14,612.61 Lakhs and Rs. 13,079.45 Lakhs for Fiscals 2026, 2025 and 2024 respectively with corresponding EBITDA of Rs. 1,907.96 Lakhs, Rs. 1,502.66 Lakhs and Rs. 1,162.50 Lakhs.

Risk Factors

  • Rising costs, supply disruptions, and import restrictions on essential raw materials
    The company's raw material costs represented 44.29% of total revenues in Fiscal 2024, rising to 36.57% in Fiscal 2026. Import purchases constitute 76.65% of total purchases (₹8,182.37 Lakhs in FY2026), making the company highly vulnerable to global commodity price volatility, supply chain disruptions, and geopolitical trade tensions.
  • Significant dependence on imports for raw material procurement
    The company sources materials from 12+ countries with China (17.54%), Portugal (27.10%), and South Korea (11.46%) being major suppliers. This exposes the company to geopolitical risks, trade sanctions, foreign exchange fluctuations, and potential supply chain disruptions that could materially impact operations and costs.
  • Heavy reliance on top 10 customers for revenue concentration
    The company's top 10 customers contribute 55.59% of total sales in Fiscal 2026 (46.43% in FY2025, 43.92% in FY2024). Loss of any key customer or reduced demand from them could significantly impact revenues, profitability, and overall business performance.
  • Complete dependence on automotive industry performance
    The company derives 100% of its revenue from the automotive industry across all three fiscal years. Any downturn in the automotive sector, both domestically and globally, could severely impact the company's business operations, financial condition, and long-term profitability.
  • Geographic concentration in Tamil Nadu and Haryana
    Revenue from Tamil Nadu and Haryana accounts for 48.79% of total operations in FY2026 (Tamil Nadu: 32.54%, Haryana: 16.25%). This concentration exposes the company to regional economic disruptions, natural disasters, policy changes, and local market conditions.
  • Significant working capital requirements and liquidity strain
    The company experienced substantial decline in Net Cash Flow from Operating Activities to ₹70.00 lakhs in FY2025 from ₹379.42 lakhs in FY2024, despite profit growth. Inventory holding days increased from 61 to 64 days, and trade receivable days rose from 38 to 41 days, indicating working capital cycle elongation.
  • Absence of binding agreements with customers
    The company operates without firm commitment agreements with customers, creating demand and revenue uncertainties. Customers can reduce or discontinue orders at any time, making sales forecasting difficult and exposing the company to significant revenue volatility.
  • Dependence on key promoters and management personnel
    The company's success is closely tied to its Promoters and Executive Directors who play pivotal roles in daily operations, strategy, and management. Loss of key personnel could disrupt business operations and require significant time and resources to find suitable replacements.
  • Operating from leased facilities without ownership
    The company's Registered Office and Manufacturing units are operated from leased premises, including facilities leased from Promoter Group individuals. Inability to continue these arrangements or forced relocation could result in operational disruptions and increased costs.
  • Strict quality requirements and compliance risks
    The company must adhere to strict quality standards set by customers. Any failure to meet these standards could result in order cancellations, product recalls, warranty claims, legal liabilities, and potential loss of key customers, significantly impacting financial performance and market position.

Objects of the Issue

  • Funding of Capital Expenditure towards Construction of proposed manufacturing Unit I at Plot No-E-185, RIICO IND Area Karoli Teh Tapukara, Rajasthan
    The company intends to establish a new manufacturing facility on leased land for manufacturing adhesive tapes, die-cuts, rubbing compounds, buffing pads, reflective tapes and car care products to expand production capacity and strengthen operations.
    4.89 crores
  • Funding of Capital Expenditure towards Construction of proposed manufacturing Unit II at Plot No. P 32 Street No. B, Sector 11, Model Economic Township, Village - Nimana, Tehsil Badli, District - Jhajjar, State Haryana
    The company plans to set up another manufacturing facility on owned land to enhance in-house production capabilities, reduce reliance on external vendors, and support growing customer demand in the die-cut segment.
    16.62 crores
  • Funding working capital requirements of the company
    The company proposes to utilize funds for meeting its working capital needs to support future growth requirements, fund inventory, trade receivables and other operational expenses.
    12.00 crores
  • General corporate purposes
    The company intends to use funds for general corporate purposes in accordance with regulatory requirements, not exceeding fifteen percent of the amount being raised or ten crores, whichever is less.

Financial Snapshot

Annual values as reported in the offer document.

Year endRevenueRev. growthProfitProfit growthAssetsEquityOperating cash flow
31/03/2026148.34+0.8%12.76+27.9%84.8161.6218.80
31/03/2025147.18+11.9%9.98+34.3%66.1448.860.70
31/03/2024131.54—7.43—54.0038.873.79
Units: crores

Issue Details

Face Value
₹10
P/E
18.20
ROCE
25.00%
Shares / Lot
1,200
Minimum Bid
2,400 shares
Refund
01 Sept 2026
Credit to Demat
01 Sept 2026
ISIN
INE11Z001019
CIN
U74210TG1994PLC019032
Registrar
Kfin Technologies Ltd.
Lead Managers
GYR Capital Advisors Pvt.Ltd.
Registered Office
Plot No.45, Shanthinikethan Colony, Mahendra Hills, East Marredpally, Secunderabad, Telangana, India, 500026
RHP ↗DRHP ↗

Management

Sudeep MehtaMD
Smriti MehtaCEO
Ramnik ChhabraDirector
Vijay S BapnaCFO
Vinay Kumar PiparsaniaCOO
Prateek NahataVP of Marketing
VLS Gurunadha Rao AduriVP of Sales

* Grey Market Premium is unofficial, indicative data from unregulated grey-market dealers. It is not published by NSE, BSE, SEBI or the issuer, and is not a forecast of the listing price.