Sumax Engineering Limited

This section primarily discusses macroeconomic forecasts related to the global economy and inflation, detailing projections for various regions and timeframes. It outlines expected slowdowns in global growth, changes in inflation trajectories across different economies, and the impact of trade tensions on global trade volumes. Furthermore, it provides an overview of India's economic growth trajectory and the robust performance of its manufacturing sector.

The provided text discusses the robust economic growth in India, noting that Real GDP expanded by 6.5% in 2024-25, with expectations for continued growth. It highlights that domestic demand is strong, driven by rising consumption and investment, while global conditions remain fragile. The text also covers aspects of the Indian economy, including government focus on infrastructure through capital expenditure, easing inflation, and positive trends in foreign exchange reserves and debt vulnerability. Furthermore, it details the dynamics of the automotive sector, noting its role in the economy and its prospects for growth, particularly in the electric vehicle market.

The Indian automotive sector is experiencing significant acceleration, driven by a fast-growing economy, rising incomes, and government initiatives aimed at boosting domestic manufacturing and green mobility. The two-wheeler segment remains dominant, and the industry is shifting towards electrification while still relying on internal combustion engine vehicles. The auto component industry is a vital segment, contributing to the economy and poised for substantial growth, supported by global competitiveness and domestic demand. Key market trends include the rise of electric vehicles, the need for high-quality components, and the expansion of the market across various segments.

The company is engaged in both the manufacturing and trading of a diverse range of products for the Automotive OEM and Auto Refinish markets. The manufacturing division focuses on producing items such as adhesive tapes, die-cuts, rubbing and polishing compounds, buffing pads, reflective tapes, printing solutions, domes, graphics, and various car care products. The trading segment supplies essential products like electrical and pneumatic tools, abrasive sheets, discs, body shop consumables, retail products, accessories, and aerosol products. The company has also entered the market for Paint Protection Film (PPF), a transparent thermoplastic polyurethane film used to protect vehicle paint from various surface damage. The company adheres to national and international quality standards, including ISO 9001:2015 and IATF 16949:2016 certifications, and utilizes premium-grade raw materials.

The company's revenue is bifurcated into Manufacturing and Trading segments, with the Manufacturing segment comprising various tapes, films, compounds, and pads, while the Trading segment includes tools, abrasive sheets, body shop consumables, retail products, accessories, and aerosol products. The company manufactures a full range of tapes for automotive, industrial, and hardware industries, offering solutions like masking tapes and die-cuts. Furthermore, the company produces products for automotive detailing, such as rubbing and polishing compounds, buffing pads, and foam pads, as well as reflective tapes for visibility enhancement. The company also has capabilities in in-line doming applications for labels and manufactures domed emblems for the automotive and white goods industries.

The company offers a range of products categorized into Body Shop Consumables, which include items like masking paper and foam pads for automotive repair, and Retail Products, which cover aftermarket parts and maintenance tools for vehicle owners. The portfolio also includes various Aerosol Products designed for cleaning and maintenance, such as products for removing dirt and grease from brake assemblies. Furthermore, the company details key manufacturing processes for Adhesive Tapes and Buffing Pads, which involve steps like jumbo unwinding, slitting, and quality control testing to ensure product integrity.

The company highlights its competitive strengths through experienced promoters and a robust management team with extensive experience in the automotive OEM manufacturing industry. The product portfolio is diverse, encompassing industrial specialty adhesive tapes, rubbing and polishing compounds, and various other products designed to withstand tough conditions. The company has achieved ISO 9001:2015 and IATF 16949:2016 accreditations for the automotive sector, demonstrating a commitment to quality management standards. Strong industry relationships with OEMs are crucial for success, fostering collaborations for innovation and addressing market needs. Furthermore, the company focuses on efficient logistics and supply chain management, utilizing systems like Kanban or Just-in-Time inventory to ensure timely deliveries.

The company's revenue breakdown shows significant sales contributions from various Indian states, with Tamil Nadu leading in revenue share. The company's total revenue is derived from domestic and export sales, and the revenue is further bifurcated into B2B and B2C segments. The company operates advanced manufacturing facilities in Chennai and Manesar, utilizing a diverse range of machinery for producing car care and related products. The company has a wide market presence, exporting to numerous countries, and its raw material procurement is heavily dependent on imports.

The company manufactures various products including die-cut items, pre-taped films, and masking tapes, with production quantities and specifications detailed for different product types. The company also produces car care products, rubbing and polishing compounds, buffing pads, foam pads, reflective tapes, and dome labels. The company maintains infrastructure facilities, including a registered office and factory premises, equipped for administrative and manufacturing activities. Raw materials are sourced from both import and domestic suppliers, and finished goods are dispatched through various logistics services. The business segment focuses on manufacturing adhesive tapes and die-cut components on a make-to-order basis.

This section details various immovable properties taken on a lease or rent basis by the company, listing the lessor, lessee, property address, area, consideration, tenure/term, and usage related party. It also outlines the regulatory framework governing the company's business operations in India, including various central and state legislations related to industry, employment, and environmental protection.

This section details various Indian laws and regulations that the company must comply with for its operations, covering aspects such as trade policy, foreign exchange, taxation, contract law, consumer protection, competition, and insolvency. It outlines the framework for various laws governing the import, export, and domestic transactions of goods and services. Furthermore, it mentions regulations concerning company formation, securities issues, and the framework for resolving corporate insolvencies.

The company was originally incorporated as Sumax Engineering Private Limited on December 21, 1994, and later converted to a public limited company on July 20, 2024, changing its name to Sumax Engineering Limited. The company has undergone several changes to its authorized share capital over the years, including various increases and subdivisions. The registered office has also been changed on March 10, 2006, for administrative purposes. Key operational milestones include establishing plants in Manesar in 2000, commencing operations in Pune in 2006, and entering into collaborations with foreign companies. The company has also achieved various certifications and milestones related to its manufacturing and quality standards.

The company has received awards in 2004 and 2019, and has not experienced significant time and cost overruns in projects. There are no reported defaults or rescheduling of borrowings from financial institutions, nor have there been any material business acquisitions, mergers, or divestments since incorporation. Furthermore, the company has not revalued assets or issued equity shares by capitalizing revaluation reserves in the last ten years. The company currently does not have a holding company, subsidiaries, associates, or strategic/financial partners, and there are no material agreements with key personnel or third parties that impact management or control.

The offer involved a Fresh Offer of 42,91,200 Equity Shares, aggregating to ₹ 4334.11 lakhs by the Company, and an Offer for Sale of 9,96,000 Equity Shares, aggregating to ₹ 1,005.96 lakhs by the Selling Shareholders. The Company intends to use the net proceeds from the Fresh Offer for various purposes, including funding capital expenditure for the construction of two proposed manufacturing units, funding working capital requirements, and covering general corporate purposes. The net proceeds from the fresh issue were estimated at ₹ 3,931.28 lakhs after deducting offer-related expenses.

This section details various costs related to providing and fixing of door and window components, external area works, and associated civil and plumbing infrastructure. The total cost for these items is detailed, and the section includes various notes regarding the validity of quotations, flexibility in cost revisions, and how surplus proceeds can be utilized for machinery or general corporate purposes. Furthermore, the text outlines the implementation schedule for these objects, including expected commencement and various government approvals, as well as details on the company's working capital requirements and the basis for their estimation.

The company plans to deploy the balance net proceeds towards general corporate purposes to fuel business growth. The utilization of these funds is subject to various regulatory requirements and monitoring by a designated agency. Offer related expenses are estimated to be 7.54% of the total offer size. The offer price determination involves a book-building process based on market demand and various qualitative and quantitative factors.

The provided section details various financial and operational performance indicators (KPIs) of the company, including historical Return on Net Worth figures. It also outlines procedures for the offer-for-sale percentage and various weighted average cost of acquisition calculations based on different types of share transactions. The text also specifies conditions related to the issuance and sale of equity shares.

This section details the special tax benefits available to the Company and its shareholders under various Indian tax laws. Regarding direct taxation, the Company has opted for a concessional tax regime under Section 200 of the Income Tax Act, 2025. Furthermore, the section clarifies that shareholders are not entitled to any special tax benefits under the direct tax provisions. For indirect taxation, the statement indicates that there are no special tax benefits available to the Company or its shareholders under the GST law.

The document details outstanding trade payables owed to micro, small and medium enterprises, material creditors, and other creditors as of March 31, 2026, totaling ₹592.99 lakhs across 178 creditors. It confirms that no material adverse developments have occurred since the last financial disclosure. The company lists several regulatory approvals, including authorization for the offer, shareholder resolution, and listing approval from the National Stock Exchange, as well as historical incorporation details and tax-related registrations.

The document details various regulatory and labor-related approvals obtained by the company, including professional tax registrations for Telangana and Maharashtra, certificates for the Employees' Provident Fund Code, ESIC registrations across multiple states, UDYAM registration, and Importer-Exporter Code. It also lists two Shops and Establishment Registration Certificates issued by the Labour Department of Telangana, with one expiring on December 31, 2026, and the other set to expire on March 25, 2026.

The document lists various environmental and industrial registrations for the company, including licenses for shops and establishments in Maharashtra and Haryana, as well as consents to establish under pollution control acts in Rajasthan, Haryana, and Tamil Nadu. It also details factory licenses and air/water consent orders issued by respective state boards, with some entries showing future validity periods extending through 2031.

The document explicitly disclaims responsibility for the financial soundness of the company or its promoters and states that investors assume all risks associated with subscription or acquisition. It clarifies that the company and its book running lead manager accept no liability for software faults, application blocking errors, or any other technical failures during the UPI mechanism. Additionally, the text specifies that the offer is restricted to residents in India, including HUFs, companies, and societies, while excluding non-residents and persons outside India.

The document states that the company has not made any previous rights or public issues during the last five years, classifying it as an 'Unlisted Issuer' and an 'Initial Public Offer' under SEBI ICDR Regulations. It provides a table of past issues handled by the lead manager, listing details for ten companies including Luxury Time Limited, K.V. Toys India Limited, and others, with their issue sizes, issue prices, and performance metrics. A summary statement of disclosure is provided, showing the total number of IPOs and funds raised for each financial year from 2021-2022 to 2026-2027, with specific breakdowns of issues trading at discount and premium. The document notes that the price information for past issues is sourced from designated stock exchanges like NSE and BSE.

The document outlines the mechanism for investor grievance redressal, specifying that the Registrar to the Offer retains records for three years to address complaints from ASBA Bidders and Anchor Investors. It details compensation provisions for delays in unblocking amounts, including a uniform rate of ₹100 per day for delays exceeding two working days and alternative compensation rates based on SEBI circulars for various scenarios such as cancelled or delayed applications. Additionally, the text mentions that investors may seek redressal from concerned SCSBs within three months of listing if their bids are not considered for allotment due to SCSB failures.

The document confirms that Sumax Engineering Limited has not received any exemption from complying with Securities and Exchange Board of India (SEBI) regulations. It further details the company's management team, including the Chairperson, Members, and Company Secretary, and provides contact information for the Compliance Officer. The section explicitly states that no incentives are being offered to applicants for the initial public offer, except for standard fees or commissions for services rendered.

The document outlines the legal framework for equity share ownership, including joint holding provisions and nominee registration under the Companies Act, 2013. It specifies that the exclusive jurisdiction for this offer is within India, with no registration under the U.S. Securities Act, 1933, and no availability to U.S. persons. The offer program is scheduled from August 24 to September 2, 2026, with trading expected to commence on September 2, 2026. The document also notes that the Company reserves the right to withdraw the offer before allotment and that final listing and RoC approvals are subject to obtaining from the Stock Exchange and the RoC.

This section outlines the bid submission timeline, rules, and procedures for the Indian company's public offering. It specifies that bids must be uploaded between 10:00 a.m. and 5:00 p.m. IST on working days, with specific time limits for different bidder categories. The document clarifies that upward revisions or cancellations are permitted for QIBs and Non-Institutional Bidders, while downward revisions and cancellations are prohibited for these categories. It also details the consequences of missing deadlines, such as the refund of application money if the minimum subscription amount is not received within 30 days.

The document outlines the terms and conditions for the issuance of Equity Shares, including interest penalties for delays, minimum subscription requirements, and restrictions on trading in dematerialized form. It specifies that the shares are not registered in other jurisdictions and outlines the priority order for meeting subscription requirements in case of under-subscription. The text also details the reimbursement of expenses by Selling Shareholders for delays in refunds and confirms that there are no outstanding warrants or new financial instruments.

The document outlines eligibility criteria for listing on the SME platform, requiring a minimum of 500 public shareholders, 20% promoter holding, and a net worth of 75 crores. It specifies that no insolvency proceedings, winding up petitions, or regulatory actions like suspensions or debarments have occurred in the past three years. The text also notes that the company must have no pending investor complaints in SCORES and must not have defaulted on interest or principal payments to bondholders.

The document outlines an initial public offering of 52,87,200 equity shares at ₹101 each, aggregating to ₹534.07 Lakhs. The total offer is structured as a fresh issue of 42,91,200 shares by the company and an offer for sale of 9,96,000 shares by selling shareholders. The offering is conducted through a Book Building Process with specific allocations for employees, QIBs, individual investors, and anchor investors. The net offer constitutes 25.38% of the post-Offer paid-up equity share capital, while the offer size represents 27.79%.

The section outlines the allotment of equity shares to eligible investors, including mutual funds, QIBs, and individual investors, based on a proportionate firm allotment system. It specifies that up to 50,400 shares are available for mutual funds, while up to 9,24,000 shares are available for QIBs. Additionally, up to 60% of the QIB portion is allocated on a discretionary basis to Anchor Investors, with 33.33% reserved for domestic mutual funds and 6.67% for life insurance companies and pension funds.

This section outlines the eligibility criteria, allocation price, and trading mechanics for the outstanding litigation of the company. It specifies that bids must be submitted exclusively through the ASBA process, with specific exceptions for Anchor Investors and UPI mechanisms up to a certain limit. The document details the minimum bid size requirements, which vary based on the bid amount exceeding ₹2,00,000, and the maximum bid size limits to ensure individual bids do not exceed ₹5,00,000. It also describes the trading lot structure, noting that the Market Maker may accept odd lots if required under SEBI ICDR Regulations.

The document outlines SEBI's circulars mandating UPI usage for individual investors bidding up to ₹5,00,000 and requiring ASBA blockage for all public issue applications. It specifies eligibility criteria for various investor categories, including eligible employees, market makers, public financial institutions, and specific types of pension and provident funds. The text also notes that the minimum application size for individual investors bidding above two lots is set at ₹2.00 Lakhs.

The document outlines the Book Building process for the issuance of equity shares, detailing the allocation of the Net Offer to various investor categories including QIBs, Anchor Investors, Non-Institutional Investors, and Individual Investors. It specifies that up to 60% of the QIB portion can be allocated to Anchor Investors with complex allocation rules based on bid amounts, while 35% is reserved for Individual Investors and 15% for Non-Institutional Investors. The process involves electronic submission of bids, joint bid handling, and strict adherence to SEBI ICDR Regulations and UPI payment mechanisms. The document also includes a detailed timetable for the offer period, allotment, and trading commencement, along with provisions for bid revisions, withdrawal, and compensation for delays.

The document outlines regulatory requirements for Indian securities companies regarding investor complaints and UPI adoption in initial public offerings. It mandates that SCSBs must unblock unsuccessful applicants' accounts within one day and compensate investors if there is a delay in resolving complaints. Additionally, it specifies that individual investors with application amounts up to ₹5,0 must use UPI, while those bidding for more than ₹2,0 must provide their UPI ID through specific channels or linked online trading facilities.

This section outlines the mandatory ASBA (Application for Sale by Auction) process for investors bidding in the Indian company's IPO, requiring bids to be submitted via designated intermediaries at specific Bidding Centres. It details the submission methods for different investor categories, including UPI mechanisms for individual investors and specific requirements for Anchor Investors. The text also specifies the color coding for application forms based on investor type and mandates the use of depository accounts for all applications.

The document outlines mandatory UPI mandate requirements for trading members and depositors, specifying that bids exceeding ₹5,0 must be submitted via SCSBs only. It details the timing of fund blocking, the release of processing fees, and the reconciliation processes between banks, NPCI, and the Stock Exchange. The text also describes the electronic registration of bids, the submission of application forms by intermediaries, and the requirements for ASBA account balances.

The document outlines the eligibility criteria for applicants participating in the equity share offer, explicitly excluding minors, foreign nationals, and overseas corporate bodies while permitting eligible NRIs, Indian financial institutions, and various types of funds and partnerships. It details the bidding process, which involves a three-day period where bidders can submit up to three price options, with automatic invalidation of bids exceeding the offer price. The process includes specific provisions for Anchor Investors, who must bid for at least ₹200 lakhs and face strict allotment caps based on total allocation amounts, with a mandatory 90-day lock-up period for 50% of their shares.

The document outlines specific restrictions and application requirements for various investor categories in the Indian Public Inclusion Eligible NRI Offer. It clarifies that the application must be made in the name of individuals, limited companies, or statutory corporations, excluding minors, foreign nationals, trusts, HUFs, and partnership firms, with exceptions for registered trusts and specific HUF Karta applications. The text also details participation rules for associates and affiliates of the Book Running Lead Manager, who may subscribe to shares under certain conditions, while Promoters and their related persons are explicitly barred from participating. Additionally, it mandates that Mutual Funds must provide their SEBI registration certificate and specify the concerned schemes, with a cap of 10% investment in equity instruments. Finally, it specifies that HUF applications should be made in the Karta's name and that Eligible NRIs must provide proof of funds in Indian Rupees or freely convertible foreign exchange.

The document outlines specific restrictions and eligibility criteria for Non-Resident Indians (NRIs) and Foreign Investment Partners (FIIs) participating in the company's equity offering. Eligible NRIs must adhere to FEMA regulations regarding repatriation and hold limits of 5% for individuals and 10% for groups, while FPIs are subject to SEBI FPI Regulations and FEMA Non-Debt Instruments Rules with aggregate holding caps of 10% for single investors and 24% for all FPIs combined. Both groups must comply with specific filing deadlines and documentation requirements, such as attaching certified registration certificates for FPIs, to ensure their bids are accepted.

The document outlines specific investment limits and attachment requirements for various types of applicants in the context of the outstanding litigation section. It mandates that insurance companies must attach a certificate from the IRDA, while provident funds must attach a certificate from a chartered accountant. Banking companies are required to attach certificates from the RBI and their investment committee approval. Systemically important non-banking financial companies must attach certificates from the RBI and their auditors. The text also specifies that all applicants must comply with regulations issued by the respective regulatory authorities.

The document outlines compliance requirements for SCSBs participating in the offer, mandating separate accounts for ASBA applications and adherence to specific SEBI circulars. It details the submission of power of attorney and corporate documents for various entity types, including VCFs, FVCIs, FIs, mutual funds, insurance companies, provident funds, and pension funds, with specific minimum corpus thresholds. The text also specifies requirements for Bids made by Limited Liability Partnerships and permits the company to relax certain conditions regarding the simultaneous lodging of power of attorney and application forms.

This section outlines the allotment process for the Draft Red Herring Prospectus, detailing how equity shares are distributed to Individual Investors, Non-Institutional Bidders, QIBs, and Anchor Investors based on their bids and the overall demand. The process begins with the determination of the Offer Size, which is adjusted for Non-Institutional and QIB Bidders depending on whether demand is below or exceeds specific thresholds. For QIBs, the allotment is split between Mutual Funds and other QIB Bidders, with specific rules for undersubscription and a maximum allotment cap. Anchor Investor allocation is discretionary and subject to strict limits on the number of investors and the total amount allocated, with a physical book of applications prepared by the Registrar. The document also includes a flow of events from the bidding period to the final allotment, describing the roles of the RTA, Designated Stock Exchange, and Registrar in validating bids, generating lot numbers, and issuing allotment advice.

The document outlines the procedural rules for bid uploads, underwriting agreements, and equity share allotment in dematerialized form. It specifies that bids from QIBs and non-institutional bidders are subject to specific time limits relative to the closing date, while applications from OCBs require separate handling. The company has entered into tripartite agreements with NSDL and CDSL to facilitate electronic shareholding, and the ISIN is listed as INE11Z001019. Payment terms mandate that the full offer price of ₹101 per share is payable on application, with the Registrar instructing SCSBs to unblock excess amounts if allotment is lower than the application size.

The document outlines the allotment procedures for equity shares, including the timeline for dispatching letters of allotment and the use of ASBA (Application Supported by Blocked Account) to ensure funds are blocked until allotment occurs. It specifies that the Offer Period lasts between three to ten working days and mandates compulsory ASBA application through designated intermediaries. The process involves the Stock Exchange, Registrar, and BRLM finalizing the Basis of Allotment in a fair manner, with allotments rounded off to the nearest integer or minimum lot size. The text also notes that the Company is not liable for amendments to laws or regulations occurring after the prospectus date and that applicants must verify the ASBA application form details.

The document outlines the ASBA (Application for Sale by Building) process where funds are verified against the application amount before upload. If funds are available, the SCSB blocks the amount and generates a separate TRS for each price option. The application amount remains blocked until the Basis of Allotment is finalized or the offer is withdrawn. Bank details and demographic information are mandatory for all applicants to ensure proper correspondence and allotment.

The document outlines the financial obligations and procedures regarding refunds, promoter contributions, and the utilization of net proceeds from the equity offering. It specifies that funds must be made available to the Registrar and Share Transfer Agent, with electronic transfers requiring communication of bank details and expected credit dates. The text confirms that all Promoters' contributions have already been brought in and that no further equity offers will proceed until the shares are listed or applications are refunded. It also details the consequences of delays, including the requirement to file a fresh prospectus if the offer is withdrawn and the obligation to pay interest for any delay beyond the prescribed time. Additionally, it mandates that certificates for Eligible NRIs be dispatched within a specified timeframe and that no promoters or directors are wilful defaulters under SEBI regulations.

The document outlines the company's net-worth and net-assets definitions, followed by a capitalisation statement showing an increase in shareholders' funds from ₹6,161.50 lakhs to ₹10,495.61 lakhs post-offer. Financial indebtedness details reveal a total secured borrowings of ₹993.12 lakhs and an unsecured loan from a related party of ₹312.79 lakhs, with the latter representing a significant portion of the total debt structure.

The document outlines the financial performance of Sumax Engineering Limited, which transitioned from a private to a public limited company in 2024. Revenue from operations grew from ₹13,079.45 lakhs in FY2023-24 to ₹14,769.06 lakhs in FY2025-26, with corresponding net profits increasing from ₹743.14 lakhs to ₹1,275.86 lakhs. The company's financial health is supported by a low debt-equity ratio of 0.21 and a strong return on equity of 23.10%. The management discussion and analysis report serves as a key component of the prospectus, providing insights into the company's operations and financial condition.

The document outlines accounting standards for revenue recognition, including the transfer of ownership risks for goods and services, and establishes specific recognition criteria for interest income, taxes, cash balances, and employee benefits. It details the calculation of earnings per share based on weighted average shares and defines potential dilutive equity shares, while also specifying the treatment of defined contribution plans under employee benefits.

The document outlines the Company's defined benefit gratuity plan, which provides lump-sum payments to vested employees based on years of service without a monetary limit. It also details segment reporting policies, where revenue and expenses are allocated to segments based on their relationship to operating activities, with unallocated items included under specific line items. The financial statements for the year ended March 31, 2026, show a total revenue of ₹14,769.06 lakhs and a total expense of ₹13,210.49 lakhs, resulting in a profit before tax of ₹1,723.96 lakhs.

This section outlines various articles of association governing the company's equity shares and the associated terms. It details provisions related to the variation of authorized share capital, the control of shares by the Directors, and the procedures for issuing, transferring, and dealing with share certificates. Furthermore, the articles cover liens on shares, the process for making calls on members for unpaid amounts, and the procedures for forfeiture of shares upon non-payment. It also addresses the transmission of shares following the death or insolvency of a member.

The provisions detail various aspects of the company's governance, including the power to reduce share capital, the capitalization of profits, and the dematerialization of securities. The articles also cover rules for the transfer of securities, the handling of various accounts, and procedures for general and board meetings. Specific rules exist regarding voting rights, including the proportion of votes based on shareholding, and procedures for appointing and removing directors and chairpersons.

The provisions detail various aspects of corporate governance, including procedures for board meetings, appointment and removal of key officers, and the affixing of the company seal. The rules also govern the declaration of dividends, including limits set by the Board, and the power to set aside profits as reserves or for contingencies. Furthermore, the text outlines rules regarding the payment of dividends, the handling of amounts paid in advance, and the apportionment of dividends across different share classes.