Sumax Engineering IPO — GMP, Subscription, Review & Score

Sumax Engineering

SME IPO · NSE · ✅ LISTED

FINMINUTES IPO SCORE 74/100 provisional · components pending

₹95–101

Price Band

Issue ₹53 cr · Lot 1200

SME Risk Meter: Medium

A distinct read of SME-specific danger (liquidity, concentration, forensic flags) — separate from the FinMinutes Score. Higher band = more caution warranted.

Significant raw material and trade dependency on group entity Autokrom India Private Limited (representing ₹1.70 Cr in trade volume in FY26)
Ongoing unsecured financing from promoter group relative Sumer Chand Mehta with an outstanding pre-IPO loan taken of ₹3.13 Cr
Unresolved TRACES TDS defaults of ₹4.91 Lakhs dating back to FY 2007-08 alongside chronic ROC secretarial filing delays
Selection of the SME EMERGE platform despite having Mainboard-scale revenues (₹147.69 Cr) and profits (₹12.76 Cr)

Educational risk signal grounded in the filing — not a buy/sell call.

First time with SME IPOs? Read the SME IPO guide and the risks before applying.

FinMinutes Deep Business Model & Edge

Sumax Engineering Limited (formerly known as Sumax Engineering Private Limited) is a Secunderabad-based company engaged in both the manufacturing and trading of a diverse range of products tailored for the Automotive OEM (Original Equipment Manufacturer) Market and Auto Refinish Market.

What this company actually does — full breakdown ▾

Sumax Engineering Limited was originally incorporated in December 1994 and converted to a public limited company in September 2024. The Company operates two manufacturing and storage facilities: Unit I in Sriperumbudur, Tamil Nadu (26,000 sq. ft.) and Unit II in Manesar, Gurgaon, Haryana (31,559 sq. ft.). Because the company operates a customized system of make-to-order manufacturing for its OEM clients, conventional fixed capacity and capacity utilization metrics are based on line-by-line product categories (such as Buffing Pads, Masking Tapes, and Car Covers), with Unit I and Unit II utilizing up to 94% and 96% of capacity respectively in key lines like Buffing Pads for Fiscal 2026. The company primarily sells its products B2B directly to major automotive OEMs and also to the aftermarket auto refinish segment. To reaches these customers, the company leverages long-term partnerships, direct OEM sales teams, and active participation in prominent global expos (such as Automechanika Frankfurt). The company's products are marketed and sold under the 'SUMAX' brand, and its processing facilities are accredited with ISO 9001:2015 and IATF 16949:2016 certifications.

Moat / Edge

The Company's primary operational moat is its established, three-decade-long supplier relationships and strategic certifications (IATF 16949:2016) with major automotive OEMs, allowing them to integrate directly into OEM production lines. This is supported by its well-known 'SUMAX' brand recall and a dual-segment marketing strategy targeting both high-end OEMs and the fragmented refinish aftermarket.

The Offer

Open – Close2026-08-25 – 2026-08-28

Price Band₹95–101

Lot Size1200

Min Investment—

Issue Size₹53 cr

Fresh Issue—

Offer for Sale—

ListingNSE

Follow the Money — Use of Proceeds

Funding of Capital Expenditure towards Construction of proposed manufacturing Unit I at Plot No-E-185, RIICO IND Area Karoli Teh Tapukara, Rajasthan — ₹4.89 cr
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 — ₹16.62 cr
Funding working capital requirements of our company — ₹12.00 cr
General corporate purposes

Valuation at the Offer Price

P/E at ₹101 upper band11.7xour arithmetic, on latest restated EPS

RoNW20.7%

NAV / share₹41.8

The filing does not print a single headline multiple, so this one is ours: the upper band divided by the latest restated earnings per share — the same arithmetic the “Basis for the Offer Price” section performs. It is struck on pre-issue earnings; where the issue creates new shares, the post-issue multiple is computed in the workings below. This filing names no comparable listed peer, so there is no peer table and no relative multiple on this page. We would rather say that than assemble a peer set the issuer did not stand behind.

FinMinutes IPO Score — How It's Built

Transparent, deterministic, computed from the filing — not an opinion. Open any component below to see exactly what it measures and what it is worth. Components with no disclosed input are dropped from the weighting entirely rather than held at an invented neutral, because a constant inside a weighted average is not neutral — it quietly drags every score toward the middle. Weighted across 4 live components.

Score coverage 70%

70% of the designed weighting had real data behind it on this issue. Not yet scored here: Anchor Quality, Valuation Vs Peers. A lower coverage figure does not mean a worse company — it means we are standing behind less of the picture, and you should read the findings below rather than the headline number.

Issue Structure 70/100

How this is measured12%

Whether fresh capital actually enters the business. A predominantly offer-for-sale issue is marked down ONLY when the financials are weak. A profitable, cash-rich company selling down is treated as neutral, not penalised, because it does not need the money.

Financial Quality 70/100

How this is measured32%

Driven by the models battery run on the filing's own restated numbers: the Piotroski fundamental tests (scored out of those we could actually run), the Altman Z-double-prime solvency zone, and the direction of profit across the disclosed period. It is not a single yes/no on last year's profit.

Underwriter Quality 60/100

How this is measured6%

A proxy for syndicate strength, based today only on how many lead managers are on the issue: 75 where three or more banks are involved, 60 otherwise. We have not built a bank-by-bank track record, so treat this as a rough signal. When the filing does not disclose the syndicate, this component is dropped from the weighting rather than guessed.

Governance Forensics 88/100

How this is measured28%

Starts at 100 and loses points for every material finding: 12 for a flagged finding, 4 for a noted one. Two kinds feed it. DERIVED findings are computed from the filed numbers against stated thresholds — operating cash negative while profit is positive, related-party revenue above 15% of total, revenue rising while profit falls, goodwill above 30% of net worth, receivables growing more than 1.3x faster than sales, cash below half of short-term debt. Those are reproducible: the same filing gives the same answer every time, and the rule is printed beside the finding. READ findings come from the forensic sweep of the notes. Contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications, statutory dues, promoter funding. Findings that record the ABSENCE of a problem — no litigation pending, an unmodified audit opinion — deduct nothing. This is the component our forensic read drives directly, and it moves most between companies.

3-Year Financial & Growth Trend

Metric	FY26	FY25	FY24
Revenue (₹ Cr)	147.6906	146.126	130.7945
Net Profit (₹ Cr)	12.7586	9.9816	7.4314
PAT Margin	8.64%	6.83%	5.68%

Market Context

NOT part of the FinMinutes Score

The Score above is what the filing says. Everything in this box is what the crowd says. We keep them apart on purpose — every other site blends the two and calls the result a rating. Demand is real information, but it is information about the market, not about the company, and it changes by the hour while the company does not.

Momentum100/100from live subscription

Total200.08xsubscribed

QIB—xbids land late

Retail—x

The book and the filing agree.

Demand is strong and our read of the filing supports it. Agreement is not proof, but a disagreement would have been worth explaining, and there is not one.

Subscription is low early in a book and high at the end, because most bids arrive in the final hours. A number read on day one says more about the clock than the company — which is precisely why it is not in the Score. GMP is unofficial, unregulated, and easily moved. Neither is a recommendation.

Applying, and Who Handles the Allotment

Cut-off price₹101.00

Minimum retail application₹242,400

Check allotment status on the registrar’s own portal → We link the registrar directly rather than mirroring the form.

Deep Financials

Revenue, EBITDA and profit are what every listing site prints. Below are the full restated statements as disclosed, the ratios we compute from them, and a DuPont decomposition of the return on equity. A prospectus carries three years, not ten — that is the document’s ceiling, and within it we go as deep as it allows.

Income StatementThe profit and loss as filed, then what we derive from it — kept apart.

Statutory order, exactly as restated in the filing. Finance cost and depreciation sit inside Total Expenses under Ind AS, which is why they are listed among the expense lines here rather than below the total. The expense rows sum to the total. Rows the filing does not disclose separately are omitted rather than left blank.

Income Statement — as filed (₹ Cr)	FY26	FY25	FY24
Revenue from Operations	147.69	146.13	130.79
Other Income	0.65	1.06	0.75
Total Income	148.34	147.18	131.54
Cost of Materials Consumed	54.02	63.21	57.93
Employee Benefit Expense	11.48	9.19	8.77
Finance Cost	0.57	0.57	0.61
Depreciation & Amortisation	1.34	1.09	1.07
Other Expenses	6.94	6.66	5.61
Total Expenses	132.10	133.75	121.52
Profit Before Tax	17.24	13.44	10.02
Tax Expense	4.48	3.46	2.59
Profit After Tax	12.76	9.98	7.43
EPS - Basic	8.66	6.78	5.04
EPS - Diluted	8.66	6.78	5.04

Below this line the figures are ours, not the filing's. Ind AS has no EBITDA or EBIT line. We reconstruct them from disclosed items — EBIT as profit before tax plus finance cost, less any exceptional item and share of associate profit sitting below the operating line; EBITDA as EBIT plus depreciation. The working is in the Formula Notebook.

Derived by us (₹ Cr)	FY26	FY25	FY24
EBITDA	19.08	15.03	11.63
EBIT	17.74	13.94	10.56

Balance SheetWhat the company owns, owes, and is worth on paper.

Balance Sheet (₹ Cr)	FY26	FY25	FY24
Share Capital	14.73	2.10	2.10
Reserves & Surplus	46.88	46.75	36.77
Net Worth	61.62	48.86	38.87
Long-term Borrowings	6.85	0.00	0.33
Short-term Borrowings	6.21	7.75	6.10
Total Borrowings	13.06	7.75	6.43
Trade Payables	5.93	6.18	4.90
Current Liabilities	14.81	15.78	14.01
Total Liabilities	23.20	17.28	15.13
Property, Plant & Equipment	31.57	6.88	6.78
Capital Work in Progress	0.44	0.00	0.00
Intangible Assets	0.32	0.04	0.06
Investments	1.00	0.00	1.50
Inventories	26.32	28.72	22.82
Trade Receivables	17.63	18.41	14.24
Cash & Equivalents	1.92	5.72	3.71
Current Assets	50.71	57.87	45.87
Total Assets	84.81	66.14	54.00

Cash FlowWhere the cash actually went. Often the most honest statement of the three.

Cash Flow (₹ Cr)	FY26	FY25	FY24
Net Cash from Operating Activities	18.80	0.70	3.79
Capital Expenditure	26.35	1.20	0.74
Net Cash from Investing Activities	-27.43	0.41	-2.13
Net Cash from Financing Activities	4.85	0.90	1.15
Net Change in Cash	-3.79	2.01	2.81

Ratio AnalysisProfitability, leverage, liquidity, efficiency and earnings quality — computed by us.

Every ratio below is computed by us from the line items the company disclosed — not copied from anywhere. The arithmetic is standard; the point is that somebody actually did it. Blank cells mean the filing did not disclose the inputs, and we would rather show a gap than invent a number.

Ratio	FY26	FY25	FY24
Profitability
EBITDA Margin (%)	12.9	10.2	8.8
EBIT Margin (%)	12	9.5	8
PAT Margin (%)	8.6	6.8	5.7
Return on Equity (%)	20.7	20.4	19.1
Return on Capital Employed (%)	23.8	24.6	23.3
Return on Assets (%)	15	15.1	13.8
Leverage
Debt / Equity (x)	0.21	0.16	0.17
Net Debt / EBITDA (x)	0.58	0.14	0.23
Interest Coverage (x)	31.02	24.56	17.36
Liquidity
Current Ratio (x)	3.42	3.67	3.28
Quick Ratio (x)	1.65	1.85	1.65
Efficiency
Asset Turnover (x)	1.74	2.21	2.42
Receivable Days	44	46	40
Inventory Days	178	166	144
Payable Days	40	36	31
Cash Conversion Cycle (days)	182	176	153
Quality of Earnings
Operating Cash Flow / PAT (x)	1.47	0.07	0.51
Accruals Ratio (%)	-7.1	14	6.7
Capex / Depreciation (x)	19.71	1.1	0.7
Inventory and payable days are measured against cost of goods (materials consumed + purchases of stock-in-trade + change in inventories). Receivable days against revenue.

DuPont DecompositionWhy the return on equity is what it is: margin, efficiency, or leverage.

A headline return on equity tells you what. The DuPont decomposition tells you why — whether the return is earned through margin, through asset efficiency, or simply through leverage. Two companies can post an identical ROE for opposite reasons, and only one of them is safe.

Component	FY26	FY25	FY24
Net Margin (PAT / Revenue)	8.6%	6.8%	5.7%
Asset Turnover (Revenue / Assets)	1.74x	2.21x	2.42x
Equity Multiplier (Assets / Net Worth)	1.38x	1.35x	1.39x
= Return on Equity	20.7%	20.4%	19.1%
Tax Burden (PAT / PBT)	0.74x	0.74x	0.74x
Interest Burden (PBT / EBIT)	0.97x	0.96x	0.95x
Operating Margin (EBIT / Revenue)	12%	9.5%	8.1%

Computed from the disclosed statements. Where the filing omits an input, the row is left blank rather than estimated.

Quality of EarningsWhat the statements say when you read them against each other.

What the statements say once you read them against each other. These are observations, not verdicts — every one is arithmetic on the numbers the company itself disclosed, and each is stated so you can go and check it in the filing.

Operating cash flow was 1.47x reported profit in FY26. Earnings are converting into cash, which is what you want to see and frequently is not the case.
Between FY24 and FY26 revenue grew 13% while profit grew 72%. Profit expanding at several times the rate of revenue is not automatically a concern — operating leverage does exactly this — but it is worth confirming from the filing whether the gap comes from genuine margin expansion or from one-off items.
Interest coverage was 31.02x in FY26. Debt servicing is comfortably covered by operating profit.

Forensic ModelsBeneish, Altman, Piotroski and the Montier C-score — plus our own final-year check.

Beneish M-Score

M = -2.51

An eight-variable model built to detect earnings manipulation, and built to run on exactly two consecutive years — which is what a prospectus gives us. It belongs here more than anywhere: a company about to list has the maximum possible incentive to have dressed up the very years it is about to show you. A score above −1.78 is the threshold at which the model says the accounts merit a closer look. It is a screening signal, not an accusation, and it was calibrated on listed companies elsewhere. Read the eight components, not just the total.

Component	Value	What it captures
DSRI Days Sales in Receivables Index `(Receivables_t / Sales_t) / (Receivables_t-1 / Sales_t-1)`	0.947	Above 1 means receivables grew faster than sales. Revenue may be being recognised ahead of collection.
GMI Gross Margin Index `GrossMargin_t-1 / GrossMargin_t`	0.895	Above 1 means margins deteriorated. A firm with worsening prospects has more incentive to manipulate.
AQI Asset Quality Index `AQ_t / AQ_t-1, where AQ = 1 - (CurrentAssets + PPE) / TotalAssets`	1.427	Above 1 means a rising share of assets is soft (neither current nor fixed) — capitalised costs can hide here.
SGI Sales Growth Index `Sales_t / Sales_t-1`	1.011	Growth is not manipulation. But high-growth firms face more pressure to keep the streak going.
DEPI Depreciation Index `DepRate_t-1 / DepRate_t, where DepRate = Dep / (Dep + PPE)`	3.362	Above 1 means assets are being depreciated more slowly — a quiet way to lift reported profit.
SGAI SG&A Index `(SGA_t / Sales_t) / (SGA_t-1 / Sales_t-1), SGA proxied as employee cost + other expenses`	1.15	A proxy, because filings rarely break out SG&A cleanly. Read it as a direction, not a precise figure.
LVGI Leverage Index `Leverage_t / Leverage_t-1, where Leverage = (CurrentLiab + LongTermDebt) / TotalAssets`	1.071	Above 1 means leverage rose. Debt covenants create pressure to hit numbers.
TATA Total Accruals to Total Assets `(PAT - CashFromOperations) / TotalAssets`	-0.0712	The gap between reported profit and cash generated. The single heaviest term in the model — and the one that catches profit that never became cash.

M = -2.51, below the −1.78 threshold. The model does not flag these accounts.

Altman Z″-Score (emerging markets)

Z″ = 12.02 · Safe

A distress-prediction model. We use the Z″ variant deliberately: the original Z was calibrated on American manufacturers and misleads badly on Indian services companies. Above 2.6 is the safe zone, 1.1 to 2.6 is grey, below 1.1 is the distress zone. Like every model of its kind it is a screen, not a prophecy.

X1 — Working Capital / Total Assets	0.423
X2 — Reserves / Total Assets	0.553
X3 — EBIT / Total Assets	0.209
X4 — Net Worth / Total Liabilities	2.656
Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4	12.02

X2 is meant to read retained earnings. The filing reports Other Equity, which also holds securities premium paid in by investors, so X2 here runs on reserves and reads higher than true retained earnings would. The more premium the company has raised before listing, the more Z″ is flattered.

Piotroski F-Score (adapted)

4 / 8

Nine yes-or-no tests of fundamental strength — except we run eight. One of the original nine asks whether the company issued new shares, which is plainly absurd to ask of a company whose entire purpose at this moment is to issue shares. We drop that test, and we would rather tell you that than quietly fudge it.

✓Positive return on assets
✓Positive operating cash flow
✗Return on assets improving
✓Cash flow exceeds profit (quality of earnings)
✗Long-term leverage decreasing
✗Current ratio improving
✓Gross margin improving
✗Asset turnover improving

Montier C-Score

3 of 6 signs

Six yes-or-no signs that reported profit may be running ahead of the business, from James Montier’s 2008 screen, read here for FY26 against FY25. Each is a direction in the statements, not a judgement. Several together are a reason to read the accounting policies and notes closely; none on its own means anything is wrong, and growing companies trip some of them honestly.

○Gap between profit and operating cash flow widening · PAT − CFO: ₹9.3 cr in FY25, ₹-6.0 cr in FY26
○Receivable days rising · 46 days in FY25, 44 days in FY26
●Inventory days rising · 166 days in FY25, 178 days in FY26 (on cost of goods)
○Other current assets rising against revenue · 3.4% of revenue in FY25, 3.3% in FY26 (current assets less cash, receivables and inventory)
●Depreciation falling against fixed assets · 15.8% of net block in FY25, 4.2% in FY26
●Total assets growing more than 10% a year · 28.2% in FY26

Ratios Nobody Prints

Contingent liabilities / Net worth: 0.3%
Contingent liabilities of 0.18 cr against a net worth of 61.62 cr — 0.3% of what the company is worth on paper. These are obligations that sit off the balance sheet but could land on it. What they consist of matters as much as the size: a corporate guarantee to a subsidiary is a different animal from a disputed tax demand, and the filing says which.
Related-party revenue / Total revenue: 0.6%
0.6% of revenue in FY26 came from entities connected to the promoters. Revenue you sell to yourself is not the same as revenue you won in the market.
Cash / Short-term borrowings: 0.31x
Short-term borrowings of 6.21 cr against cash of 1.92 cr. Debt that must be refinanced within a year is only comfortable while lenders stay comfortable.
Promoter remuneration / PAT: 16.4%
Managerial remuneration to the promoter group was 2.09 cr against a profit of 12.76 cr. This is a legitimate cost — but it is also a route by which value leaves a company before it ever reaches a minority shareholder.

What the Price RequiresThe profit the offer price needs, at three hurdle rates. A restatement of the price, not a view on it.

At the upper band of ₹101.00, the market value is ₹192 cr. A buyer who wants a given return each year from a business that never grows needs annual profit of market value × that return. The three rates are round hurdle rates, not this company’s cost of capital, so pick the one that is yours. The years columns assume profit compounds from the FY26 figure and the price stands still. None of this is a forecast, a fair value or a target.

Hurdle rate	Profit the price needs	× FY26 profit	Years at 15% growth	Years at 25% growth
10% a year	₹19.2 cr	1.5x	2.9	1.8
12% a year	₹23.1 cr	1.8x	4.2	2.7
14% a year	₹26.9 cr	2.1x	5.3	3.3

Earnings yield at the upper band: 6.64% (FY26 profit ÷ market value).
Free cash flow yield: -3.93% (operating cash flow less capital expenditure, −₹7.6 cr, ÷ market value).

The Formula NotebookEvery number above, with the working shown. Check us.

Every number we publish, with the working shown. The formula, the same formula with this company’s actual figures put into it, the answer, and what it is for. Check us. That is the point.

Profitability

Return on Equity (ROE)20.7%

FormulaPAT ÷ Net Worth

Worked12.76 ÷ 61.62

What the company earned on the money shareholders have in it. The headline measure of return — and the one the DuPont section takes apart.

Return on Capital Employed (ROCE)23.8%

FormulaEBIT ÷ (Net Worth + Total Borrowings)

Worked17.74 ÷ (61.62 + 13.06) = 17.74 ÷ 74.67

Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.

EBITDA Margin12.9%

FormulaEBITDA ÷ Revenue

Worked19.08 ÷ 147.69

Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.

Leverage

Debt to Equity0.21x

FormulaTotal Borrowings ÷ Net Worth

Worked13.06 ÷ 61.62

How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.

Interest Coverage31.02x

FormulaEBIT ÷ Finance Cost

Worked17.74 ÷ 0.57

How many times over operating profit covers the interest bill. Below about 2x, a meaningful share of what the business earns is going to lenders rather than owners.

Efficiency

Receivable Days44 days

Formula(Trade Receivables ÷ Revenue) × 365

Worked(17.63 ÷ 147.69) × 365

How long the company waits to be paid. Rising receivable days mean revenue is being booked faster than it is collected — which is where a great many accounting problems begin.

Cash Conversion Cycle182 days

FormulaInventory Days + Receivable Days − Payable Days

Worked178 + 44 − 40

How long cash is tied up in the operating cycle before it comes back. The longer it is, the more working capital the business must fund.

Quality of Earnings

Operating Cash Flow to Profit1.47x

FormulaCash from Operations ÷ PAT

Worked18.80 ÷ 12.76

Did the profit turn into cash? Profit is an opinion; cash is a fact. When this sits well below 1x for long, the two are drifting apart, and the filing is where you find out why.

Accruals Ratio-7.1%

Formula(PAT − Cash from Operations) ÷ Total Assets

Worked(12.76 − 18.80) ÷ 84.81 = -6.04 ÷ 84.81

The share of reported profit that exists on paper rather than in the bank. It is also the heaviest single term in the Beneish model, for good reason.

Valuation at the Offer Price

Market Capitalisation (at the top of the band)₹192.13 cr

FormulaPrice × Post-issue Shares

Worked₹101.00 × 19,022,700 shares

What the whole company is being valued at, if the issue prices at the top of the band.

Enterprise Value (EV)₹203.26 cr

FormulaMarket Cap + Total Borrowings − Cash

Worked192.13 + 13.06 − 1.92

What it would actually cost to buy the whole business: you take on its debt and you get its cash. This is the number a buyer cares about, and it is the reason a P/E on its own can mislead.

EV / EBITDA10.65x

FormulaEnterprise Value ÷ EBITDA

Worked203.26 ÷ 19.08

The multiple that includes debt. Two companies on the same P/E — one debt-free, one heavily borrowed — are not the same investment, and only this number tells you so.

Price / Earnings (P/E)15.06x

FormulaMarket Cap ÷ PAT

Worked192.13 ÷ 12.76

The familiar multiple. Useful, but blind to debt — read it alongside EV/EBITDA, never instead of it.

Return on Invested Capital (ROIC)18%

FormulaEBIT × (1 − tax rate) ÷ (Net Worth + Debt − Cash)

WorkedNOPAT ÷ Invested Capital

What the business earns on the capital actually at work in it. We do not compare this to a cost of capital: that would need a beta, an unlisted company has none, and inventing one would be theatre.

Earnings yield at the upper band6.64%

FormulaLatest full-year PAT ÷ market value

Worked₹12.76 cr ÷ ₹192.13 cr

The P/E turned upside down: what each rupee of market value earns today. Set it against what you could earn elsewhere; the gap is what growth has to make up.

Free cash flow yield at the upper band-3.93%

Formula(Operating cash flow − capital expenditure) ÷ market value

Worked₹-7.55 cr ÷ ₹192.13 cr

Cash left after the company pays for its own investment, against the price of the whole company. Profit can be shaped by accounting choices; this is harder to shape.

Trailing PEG — read the caveat0.54 (on 27.8% trailing growth)

FormulaP/E ÷ trailing PAT growth (%)

Worked15.06 ÷ 27.8%

PEG was designed for FORWARD growth. This one uses TRAILING growth, because that is all a prospectus gives us — and the final year before an IPO is very often the best year the company will have for a while. A low PEG here may say more about the timing of the filing than about the price. We show it because it was asked for; we show the growth denominator beside it so it cannot mislead you quietly.

FinMinutes IPO HubEvery live and upcoming SME and mainboard issue, scored the same way, on one page.All IPOs →

Workspace

The numbers are already loaded. Move the offer price and watch every multiple move with it. Set your own growth and margin and see what they imply two years out. These are your assumptions, not our forecast — we have no view on what this company will earn, and the moment we published one we would be doing something we are not registered to do. What we can do is put the arithmetic in front of you and get out of the way.

Price per share (₹)

Revenue growth, per year (%)

EBITDA margin held at (%)

Discount rate for the reverse DCF (%)

Price defaults to the top of the band. Margin defaults to what the company actually reported in FY26.

Market capitalisation—

Enterprise value—

P / E—

EV / EBITDA—

EV / Sales—

On your assumptions, two years out

Revenue—

EBITDA—

Implied forward EV / EBITDA—

What the price is assuming

Free-cash growth priced in, 10 yrs—

Years to earn back the market cap—

Projections are arithmetic on the inputs you typed. They are not a forecast, not a recommendation, and not a view on whether this offer is worth taking. Educational only.

Institutional Alpha: DRHP Deep Dive

Healthy Operating Cash flow Overcomes Pre-IPO Profit Spikes

In contrast to many SME issues where profits expand without cash backing, Sumax Engineering's FY26 standalone net profit of ₹12.76 Cr is fully backed by ₹18.80 Cr in Cash Flow from Operations. This cash conversion recovery was driven by stable inventory management (₹26.32 Cr in FY26 vs ₹28.72 Cr in FY25) and timely receivables billing collection.

Source: p. 44, 46, 58

Growth-Driven Use of Proceeds Over Refinancing

The company has structured its specified fresh issue objects entirely around tangible capital expenditure and working capital. Out of the specified raise, ₹21.51 Cr (64.19%) is dedicated to constructing new manufacturing units in Rajasthan and Haryana to expand capacity, with ₹12.00 Cr (35.81%) allocated to working capital, leaving zero allocation for balance sheet debt prepayment.

Source: p. 71, 72

Shareholding, Syndicate & Leadership

Promoter Pre → Post96.73% → 69.67%

Pledged Shares0%

Free Float30.33%

Anchor—

Merchant Bankers (BRLMs)GYR Capital Advisors Private Limited

RegistrarKFin Technologies Limited

Leadership & Skin in the Game

Leadership: Sudeep Mehta (Chairman and Managing Director)

Litigation: Outstanding direct and indirect tax demand proceedings against the Company totaling ₹0.1766 Cr (comprising 7 direct tax cases of ₹0.0700 Cr and 3 indirect tax GST cases of ₹0.1066 Cr). Commercial suit COS/63/2025 filed BY the Company against Santhosh V. Panse & others for recovery of ₹1.6000 Cr based on a breached settlement agreement. FIR No. 123/2025 filed BY the Company against employee Santhosh V. Panse for fraud and customer data theft. Litigations against Promoters, Directors, and Key Managerial Personnel are Nil.

Auditor / RPT Flags: None disclosed

🔍 Forensic Findings — What the Footnotes Say

Findings from across the filing — the notes, MD&A, related-party disclosures, contingent liabilities, CARO and litigation, alongside the risk section itself. Each carries where it was found, so you can see which were buried and which were disclosed. Findings marked derived are computed from the filed numbers against a stated rule, shown beside them.

Bilateral Promoter Group Funding: Substantial Unsecured Loans and Operational RPT Flows where: rpt flagged

The company has significant financial and operational dependencies on its promoters and group entities. In FY26, relative Sumer Chand Mehta was paid ₹0.34 Cr in interest and provided an unsecured loan of ₹3.13 Cr to the company, with only ₹0.09 Cr repaid, leaving a large outstanding loan. Additionally, the company engaged in material B2B transaction flows with group company Autokrom India Private Limited, recording purchases of ₹0.76 Cr and sales of ₹0.94 Cr.

p. 46

Selection of SME Route Despite Meeting Mainboard-Scale Financial Criteria where: business noted

Sumax Engineering Limited reported Standalone revenues of ₹146.13 Cr in FY25 and ₹147.69 Cr in FY26, with net profits (PAT) of ₹9.98 Cr and ₹12.76 Cr respectively. Its net worth stands at ₹61.62 Cr. These parameters comfortably exceed the minimum criteria required for a Mainboard listing in India.

p. 1, 3, 44

Unresolved TRACES TDS Defaults and Chronic Secretarial Filing delays with Auditor Change where: auditor noted

The company has outstanding processed TDS defaults on the TRACES portal totaling ₹4.91 Lakhs (₹0.0491 Cr) spanning a prolonged period from FY 2007-08 to FY 2025-26. This is coupled with chronic delays in filing mandatory ROC corporate forms (DIR-12, MGT-14, SH-7) and a change in statutory auditors within the last three years.

p. 28, 30, 31, 45 and 1 more

Pre-IPO Insider Share Dance: Massive 6:1 Bonus Followed Immediately by Secondary Transfers where: capital_structure noted

The company executed a massive 6:1 bonus issue on 2026-03-11, allotting 12,627,000 shares to promoters/promoter group. Less than four months later, on 2026-07-10, promoters Sudeep Mehta and Vimla Mehta executed secondary share transfers of 506,400 shares to various third-party individuals and entities (including Superb Real Estate LLP) at a raw price of ₹101.00 per share, providing pre-IPO liquidity and onboarding outside investors just before the public filing.

p. 61, 62, 86-88

Material Litigation where: litigation flagged

Outstanding direct and indirect tax demand proceedings against the Company totaling ₹0.1766 Cr (comprising 7 direct tax cases of ₹0.0700 Cr and 3 indirect tax GST cases of ₹0.1066 Cr). Commercial suit COS/63/2025 filed BY the Company against Santhosh V. Panse & others for recovery of ₹1.6000 Cr based on a breached settlement agreement. FIR No. 123/2025 filed BY the Company against employee Santhosh V. Panse for fraud and customer data theft. Litigations against Promoters, Directors, and Key Managerial Personnel are Nil.

p. 47, 148, 150, 191 and 3 more

Short-term debt exceeds cash on hand where: derived flagged

Short-term borrowings of ₹6.21 cr against cash of ₹1.92 cr. Debt that must be refinanced within a year is comfortable only while lenders stay comfortable.

rule: cash < 0.5x short-term debt

Company's Claims vs Reality

We stress-test each claim against the filing's own data.

Sumax Engineering Limited operates as a highly professionalized automotive systems partner with robust internal administrative controls, ensuring absolute quality and regulatory compliance. Partial

The company's administrative and secretarial controls exhibit persistent vulnerabilities, as evidenced by unresolved processed TRACES TDS defaults of ₹4.91 Lakhs stretching back to FY 2007-08, delayed deposits of employee PF contributions, and chronic multi-month backlogs in filing critical ROC corporate forms (DIR-12, MGT-14, SH-7).

p. 28, 30, 31, 45

Live Subscription Status

Total200.08x

Total subscription is fed live from the exchange data feed. The category split (QIB, NII, retail) is not carried by that feed and is added by hand where it is material — so it is shown only when we have actually verified it, rather than left as blanks.

Allotment Status

Bidding closed28 Aug 2026

Allotment01 Sep 2026

Refunds begin01 Sep 2026

Listing02 Sep 2026

Check your allotment on the registrar's portal → Registrar: KFin Technologies

Allotment is decided by the registrar, not by us and not by the exchange. In an oversubscribed retail book, allotment is by lottery, so a large application does not improve your odds beyond one lot. If money stays blocked after the refund date, the mandate expiry (09 Oct 2026) is the date to raise with your bank.

Analyst Q&A: Burning Questions

Facts from the filing. No recommendation — that layer arrives once our Research Analyst registration is live.

USE OF PROCEEDS

How are the fresh IPO proceeds being utilized, and is there any debt repayment component?

The fresh issue proceeds are entirely growth-oriented: ₹4.89 Cr is allocated to construct a new Unit I in Karoli, Rajasthan; ₹16.62 Cr is for constructing Unit II in Jhajjar, Haryana; and ₹12.00 Cr is for funding working capital. No portion of the specified proceeds is allocated to the repayment of borrowings.

p. 71, 72

PROMOTER

Who are the promoters, and what is their pre-IPO acquisition history and cost?

The promoters are Sudeep Mehta and Smriti Mehta. Their entry cost is extremely low due to early allotments at face value (₹100.00 prior to split) and subsequent sequential dilution cushions, including a 14:1 bonus in August 2018, a 1:10 stock split in March 2024 (reducing face value to ₹10.00), and a massive 6:1 bonus issue in March 2026.

p. 61, 62, 63

RELATED PARTY

Are there material financing or operational RPT dependencies?

Yes. The company is operationally and financially linked to its promoter group. In FY26, it purchased ₹0.76 Cr and sold ₹0.94 Cr of goods to group entity Autokrom India Private Limited. Financially, relative Sumer Chand Mehta provided unsecured loans of ₹3.13 Cr (repaid ₹0.09 Cr) and was paid ₹0.34 Cr in interest.

p. 46

CASH

Does operating cash flow align with reported profitability?

Yes. In FY26, the company's operating cash flow (CFO) was highly robust at ₹18.80 Cr, comfortably exceeding its reported PAT of ₹12.76 Cr. This is a strong positive divergence indicating excellent invoice realizations and working capital stabilization compared to FY25 (where CFO was only ₹0.70 Cr vs PAT of ₹9.98 Cr).

p. 44, 46, 58

SME STRUCTURE

What is the capital structure of this offer, and why was the SME route chosen?

The offer is structured as a 100% book-built issue to be listed on the NSE EMERGE platform, with GYR Capital Advisors as the lead manager. Despite having revenues of ₹147.69 Cr and net profits of ₹12.76 Cr which easily qualify for a Mainboard listing, the company chose the SME platform to benefit from lighter disclosure and regulatory review loads.

p. 1, 3, 5, 8, 44

GMP: — — unofficial grey-market chatter, shown for information only. Never part of the FinMinutes Score.

What Earlier Investors Paid

Early capital takes real risk and is fairly rewarded for it — a large multiple built over many years is normal. What deserves a closer look is a steep step-up in a short window: a round priced cheaply only months before the offer.

Shareholder	Priced at	When	vs IPO price
Subscribers to MOA (Sumer Chand Mehta, Sudeep Mehta, Vimla Mehta)	₹100.00	1994-12-21	1.0x
Sudeep Mehta and Veena Mangal	₹100.00	1996-06-30	1.0x
Hemant Jain	₹100.00	1997-01-03	1.0x
Sudeep Mehta	₹100.00	2001-02-02	1.0x
Hemant Jain	₹100.00	2001-03-01	1.0x
Vimla Mehta	₹100.00	2002-06-01	1.0x
Allottees of Bonus Issue (ratio 14:1)	—	2018-08-10	—
Share split / sub-division (1:10 split)	—	2024-03-27	—
Allottees of Bonus Issue (ratio 6:1)	—	2026-03-11	—
Pre-IPO Secondary Share Transfers (Sudeep Mehta & Vimla Mehta to Aditi, Superb Real Estate LLP, Chappidi Siva Kumar Reddy, etc.)	₹101.00	2026-07-10	1.0x

Prices are as stated in the filing’s allotment history and are not adjusted for later bonus issues or share splits. Where a company has issued bonus shares, the multiples above understate the true return and can even read as losses. Adjusting for that is on our list; until it is done we would rather show the raw disclosure and tell you its limits than publish a confident number that is wrong.

Lock-in Expiry Calendar

Shares held before the IPO cannot be sold immediately; they unlock in tranches. When a tranche unlocks, more shares become eligible to trade. Retail investors are frequently caught unaware by these dates. The schedule below follows from the listing date; quantities are shown only where the filing discloses them.

02 Sep 2029
promoterlocked-in for a period of three years from the date of Allotment as Minimum Promoters' Contribution
3,805,000 shares (20% of total)
02 Sep 2076
promoterlocked-in for a period of two years from the date of Allotment (being 50% of the excess promoters' contribution)
4,259,170 shares (22.39% of total)
02 Sep 2076
promoterlocked-in for a period of one year from the date of Allotment (being the remaining 50% of the excess promoters' contribution)
4,259,170 shares (22.39% of total)
02 Sep 2027
otherlocked-in for a period of one year from the date of Allotment (being pre-issue public shareholding of locked-in shares)
482,400 shares (2.54% of total)

An unlock means more shares may be sold — not that they will be, and not that the price will move. We state the dates; what you do with them is your call.

Educational, grounded entirely in the company's filings (DRHP/RHP). Not investment advice. FinMinutes does not provide buy/sell recommendations.

Written and verified by

Gaureesh Vats Shukla

Founder and Head of Research, FinMinutes

Gaureesh Vats Shukla reads Indian offer documents as an engineer. He has read several hundred of them alongside annual reports, most of them by hand before he built the structured extraction engine that now does the work at scale, and every figure on this page carries a citation back to the page of the filing it came from. To restated numbers he applies a standard forensic battery: Beneish M-score, Altman Z-double-prime, Piotroski F-score, DuPont decomposition and cash-conversion analysis. Coverage runs the full cap spectrum alongside macro, mutual funds and unlisted companies, with particular depth in the segment institutional research does not reach. The sectors closest to the work are defence and aerospace, semiconductors and electronics, technology, engineering and EPC, solar and capital goods. He holds a B.Tech in Aerospace Engineering and completed the Post Graduate Programme in Securities Markets at NISM with a research analysis specialisation.

The same research method is available as commissioned work: company diligence, industry and market-entry studies, and financial modelling. See what that covers →

Figures on this page were last recomputed from the filing on 2026-10-21.

Sumax Engineering SME IPO Key Details and Forensic Analysis