Sumax Engineering Limited IPO Details

1. IPO Snapshot

2. IPO Details

3. IPO Timetable

4. Issue Reservation

5. IPO Lot Size

6. About the Company

Sumax Engineering Limited was incorporated as Sumax Engineering Private Limited on December 21, 1994 and converted into a public limited company in 2024. The company manufactures and trades products for the Automotive OEM and Auto Refinish markets.

Its manufacturing portfolio includes adhesive tapes, die-cuts, rubbing and polishing compounds, buffing pads, reflective tapes, graphics, and car care products. Its trading portfolio includes tools, abrasives, body shop consumables, accessories and aerosol products. The company has also entered the Paint Protection Film (PPF) segment.

Key Products

• Adhesive tapes and die-cuts
• Pre-taped masking film
• Rubbing and polishing compounds
• Buffing and foam pads
• Reflective tapes
• Domes and graphics
• Car care products
• Electrical and pneumatic tools
• Abrasive sheets, discs and rolls
• Body shop consumables and accessories
• Paint Protection Film (PPF)

Competitive Strengths

• Experienced promoters and management
• Broad product portfolio
• Established industry relationships
• In-house processing capabilities
• Customized product design
• Efficient logistics and supply chain
• Strong financial performance
• Presence across India and international markets

The company has a global presence across countries including Thailand, South Korea, Russia, Turkey, China, Vietnam, the USA, Saudi Arabia and Taiwan.

Manufacturing Footprint & Utilization

Existing manufacturing facilities are located at Sriperumbudur/Pillaipakkam, Tamil Nadu, and Manesar, Haryana. Proposed facilities include Karoli/Tapukara, Rajasthan, and Nimana, Jhajjar, Haryana.

FY2026 utilization was high for several key production lines, including die-cuts, polish and buffing pads, with some lines operating above 90% utilization. Lower utilization in certain segments was attributed to a strategic shift away from lower-margin products toward higher-volume and better-margin products.

7. Company Financials — Restated Financial Information

8. Key Performance Indicators (KPI)

9. IPO Valuation

11. Shareholding Structure

12. Key Risks Highlighted in the RHP

Business & Raw Material Risks

The company faces volatility in prices of key raw materials and relies on domestic and foreign suppliers. Raw-material consumption represented 36.57% of total revenues in FY2026, 43.26% in FY2025 and 44.29% in FY2024. Imports represented 76.65% of total purchases in FY2026, compared with 62.11% in FY2025 and 61.71% in FY2024. Changes in commodity prices, shortages, duties, import/export rules and foreign-exchange movements could affect expenses, margins and operations.

Premises and Relocation Risks

The registered office is leased from promoter-group individual Mrs. Vimla Mehta, while the Manesar manufacturing unit is leased from a third party. The RHP notes that the company may face disruption or higher costs if these arrangements cannot continue on commercially acceptable terms.

Manufacturing Transition Risk

The company proposes to close its leased Manesar facility and consolidate operations into the proposed manufacturing facility. The RHP identifies possible temporary disruptions, relocation and reinstallation costs, workforce realignment and integration challenges.

Customer Concentration Risk

The RHP states that a significant portion of revenue is derived from top customers. In FY2026, the top customer contributed ₹1,949.25 lakh or 13.20% of revenue from operations, while the top three customers contributed ₹4,499.91 lakh or 30.47%. The RHP also discloses a material top-five concentration.

Working Capital and Liquidity Risk

The business has a significant working-capital requirement. The RHP states that inventory holding days increased from 61 days in FY2024 to 64 days in FY2025, while trade receivable days increased from 38 to 41 days. Net cash flow from operating activities fell to ₹70.00 lakh in FY2025 from ₹379.42 lakh in FY2024, primarily due to higher funds locked in inventory and trade receivables.

Geographical Concentration Risk

Revenue from Tamil Nadu and Haryana together represented 48.79% of revenue from operations in FY2026, 47.97% in FY2025 and 48.48% in FY2024. Tamil Nadu contributed ₹4,805.55 lakh and Haryana ₹2,400.13 lakh in FY2026. Local economic, weather, policy, social or other disruptions could affect business and cash flows.

Capacity Utilization Risk

The RHP states that under-utilization of manufacturing capacity could negatively affect business and financial performance. Utilization varies significantly by product line, and the company is also undertaking a transition toward proposed manufacturing capacity.

Regulatory and Tax Risk

The RHP identifies risks relating to GST return filings and other regulatory compliance and discloses direct and indirect tax proceedings.

Litigation Risk

Legal proceedings may consume management time and corporate resources and may result in legal expenses, provisions and liabilities. The RHP states that failure to successfully defend claims or inadequate provisions could affect business and results.

Promoter and Key Personnel Dependence

The RHP states that the company relies significantly on Mr. Sudeep Mehta and executive directors for management and strategic decisions. It also notes dependence on key managerial personnel and the ability to attract and retain them.

Automotive Industry Dependence

The company is heavily reliant on the performance of the automobile and broader automotive industries in India and globally. A downturn could adversely affect business and profitability.

Issue-Related Risk

The RHP emphasizes that this is the company's first public offer and that there has been no formal market for its equity shares. The floor price, cap price and offer price are to be determined through the book-building process. The RHP states that there can be no assurance of an active or sustained trading market or of the post-listing trading price.

13. Litigation and Contingent Liabilities

14. IPO Registrar

15. IPO Lead Manager

16. Company Contact Details