NewsSumax Engineering IPO Day 2 Live: Retail hits 16.18x, Total 9.50x - Check analysts view and moreSumax Engineering IPO Day 2 Live: Retail hits 16.18x, Total 9.50x - Check analysts view and more
- Sumax Engineering IPO subscribed 9.50x cumulatively by end of Day 2 trading.
- Retail category surged to 16.18x, driving the overall oversubscription.
- QIB segment remained unsubscribed at 0.00x throughout Day 2.
- NII (bHNI) jumped 81.2% intraday to reach 9.42x subscription.
- Issue closes on 2026-08-28; listing scheduled for 2026-09-02.
*this image is generated using AI for illustrative purposes only.
Sumax Engineering’s IPO gained significant traction on Day 2, with cumulative subscription ticking up to 9.50x. Retail investors led the charge, surging to 16.18x, while the QIB segment remained flat at 0x.
Subscription Status
The issue picked up pace in the afternoon session on Day 2. NII (bHNI) jumped +81.2% intraday (from 5.20x to 9.42x), and Retail jumped +71.2% (from 9.45x to 16.18x). The total subscription rose by 69.6% from the morning snapshot.
| Category | Day 1 (25-08-2026) | Day 2 (26-08-2026) |
|---|---|---|
| QIB | 0.00x | 0.00x |
| NII (bHNI) | 2.72x | 9.42x |
| NII (sHNI) | 1.95x | 4.93x |
| Retail | 5.54x | 16.18x |
| Total | 3.29x | 9.50x |
Intra-day timeline on 26-08-2026
| Time (IST) | QIB | NII (bHNI) | Retail | Total |
|---|---|---|---|---|
| 11:15 | 0.00x | 5.20x | 9.45x | 5.60x |
| 12:15 | 0.00x | 6.55x | 11.24x | 6.64x |
| 13:15 | 0.00x | 7.32x | 12.71x | 7.50x |
| 14:15 | 0.00x | 7.87x | 14.01x | 8.22x |
| 15:15 | 0.00x | 8.77x | 15.21x | 8.93x |
| 16:15 | 0.00x | 9.42x | 16.18x | 9.50x |
About the Company
Sumax Engineering Limited, founded in 1994, is engaged in the manufacturing and trading of automotive products for OEM and Auto Refinish markets. Its manufacturing division specializes in adhesive tapes, die-cuts, rubbing compounds, buffing pads, and car care products. Led by MD Sudeep Mehta and CEO Smriti Mehta, Sumax serves evolving demands in the automotive manufacturing and aftermarket industry.
Financial Highlights
The company has shown consistent revenue growth over the last three fiscal years. Profitability also improved, with total profit rising from ₹7.43 crores in FY2024 to ₹12.76 crores in FY2026. Total equity increased from ₹38.87 crores to ₹61.62 crores during the same period.
| Particulars | FY2024 | FY2025 | FY2026 |
|---|---|---|---|
| Revenue from Operations (₹ crores) | 130.79 | 146.13 | 147.69 |
| Total Profit (₹ crores) | 7.43 | 9.98 | 12.76 |
| Total Equity (₹ crores) | 38.87 | 48.86 | 61.62 |
Revenue stabilized around ₹147 crores in recent years, while profits grew steadily, reflecting improved operational efficiency despite high raw material costs.
Objects of the Issue
The proceeds from the IPO will be utilized for capital expenditure and working capital needs:
- Funding Capital Expenditure for proposed manufacturing Unit I in Rajasthan: ₹4.89 crores
- Funding Capital Expenditure for proposed manufacturing Unit II in Haryana: ₹16.62 crores
- Funding working capital requirements of the company: ₹12.00 crores
- General corporate purposes: Amount not exceeding 15% of raised funds or ₹10 crores
Risk Factors
- Rising costs and supply disruptions due to heavy reliance on imported raw materials (76.65% of purchases).
- Heavy reliance on top 10 customers, who contributed 55.59% of total sales in Fiscal 2026.
- Complete dependence on the automotive industry, exposing the company to sector-specific downturns.
Key Dates
- Issue Open Date: 2026-08-25
- Issue Close Date: 2026-08-28
- Allotment Date: 2026-08-31
- Listing Date: 2026-09-02
Will the complete lack of QIB subscription indicate a valuation mismatch or sector-specific institutional hesitation, and how might this impact listing day liquidity?
Given the 76.65% reliance on imported raw materials, how vulnerable is Sumax Engineering's margin expansion to potential currency fluctuations or global supply chain disruptions?
Can the proposed manufacturing units in Rajasthan and Haryana sufficiently diversify the company's customer base to mitigate the risk of over-reliance on its top 10 clients?
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