Indo-MIM Set To Revive IPO With Reduced Fundraising Target

Precision engineering company Indo-MIM Ltd. is expected to return to the primary market later this month with a revised initial public offering (IPO), seeking to raise approximately $420 million.

The Bengaluru-based manufacturer had originally planned to launch an IPO worth up to $700 million in March. Those plans were put on hold after escalating geopolitical tensions in the Middle East affected market conditions. With investor sentiment improving, the company has reportedly revised the issue size to around 40% below its earlier target.

People familiar with the discussions said the proposal is still under review, meaning the launch date, valuation and final size of the IPO could be altered before the offer opens. Indo-MIM has not publicly commented on the matter.

Improved Market Conditions Boost IPO Activity

The company’s decision to revisit its listing plans comes as overseas investors have resumed buying Indian equities. Bloomberg data shows foreign investors have purchased a net of $2.1 billion worth of Indian shares so far this month, helping improve confidence in the primary market.

The stronger investment environment has encouraged several companies that previously delayed their public offerings to move ahead with listing plans. During the past year, the Securities and Exchange Board of India (SEBI) has granted IPO approval to around 178 companies, reflecting a healthy pipeline of upcoming public issues.

Indo-MIM's draft red herring prospectus (DRHP) stated that the original IPO proposal included a fresh issue of shares worth ₹10 billion (around $104 million). It also comprised an offer for sale (OFS) of approximately 129.7 million shares by existing shareholders. Together, the OFS represented nearly 26% of the company's total equity.

Expansion Plans And Lead Managers

Indo-MIM specialises in manufacturing precision engineering components through metal injection moulding (MIM) technology. The company operates a global manufacturing network comprising 15 facilities—six in India, six in the United States, two in the United Kingdom and one in Mexico.

The proceeds from the fresh share issue are intended primarily for repaying outstanding borrowings, with the remaining funds earmarked for general corporate requirements.

The proposed IPO is being advised by Axis Bank, Kotak Mahindra Capital, SBI Capital Markets, ICICI Securities and HDFC Bank.

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