Maxwell Engineering Solutions
- Maxwell Engineering Solutions is coming out with an initial public offering (IPO) of 36,48,000 shares in a price band of Rs 150-158 per equity share.
- The issue will open for subscription on October 30, 2026 and will close on November 03, 2026.
- The shares will be listed on Emerge Platform of NSE.
- The face value of the share is Rs 10 and is priced 15.00 times of its face value on the lower side and 15.80 times on the higher side.
- Book running lead manager to the issue is JDA Capital Services.
- Compliance officer for the issue is Krati Gupta.
Profile of the company
Maxwell Engineering Solutions is a precision engineering company engaged in the business of manufacturing, trading and servicing of critical components for underwater pelletizing systems. It manufactures pelletizing die plates, pelletizing blades/knives, blade holders/cutter hub, tapped driving bush for underwater pelletizing systems and other spare items. To support its future growth and enhance its manufacturing capabilities, it commenced operations at the company-owned manufacturing facility situated at Waghodia GIDC, Vaghodia, Vadodara, Gujarat with effect from July 01, 2025 and has gradually transitioned manufacturing operations from its earlier leased facility situated at GIDC, Makarpura, Vadodara, Gujarat, India. This expansion is expected to strengthen its production capabilities, improve operational efficiencies and progressively reduce its dependence on trading activities.
It also undertakes customized manufacturing based on customer specifications and offer its products on a white-label basis, enabling customers to market such products under their own brands while leveraging its manufacturing expertise. The company has entered into agreements with selected job workers to carry out specific processes related to its manufacturing operations. Under these arrangements, the company supplies the required raw materials, while the job workers undertake operations such as machining, fabrication, welding, painting and other ancillary activities. It also outsources works requiring heat treatment, hardening, coating wherever required as it doesn't have the in-house facilities and to keep its manufacturing process clean, non-polluting with zero emissions.
It also offers services, including refurbishing & repair services, intermediary support & management consulting. Its refurbishment services for used die plates help customers significantly reduce costs while improving product efficiency. Additionally, it acts as an intermediary between CJTEK and third parties for the marketing and supply of CJTEK components. It also provides management consulting services for identifying and developing new customer relationships. It also represents CJTEK in exhibitions and markets its product. It also undertakes selective trading of complementary components such as blades/knives, driving bushes, blade holders and related items to meet customer requirements and provide comprehensive solutions. Its manufacturing facility is equipped with modern precision machining equipment and in-house testing facilities to support the manufacture of high-quality precision-engineered components. Its products cater to applications across polymer compounding, masterbatches, engineering plastics, cable compounds, specialty polymers and plastics recycling industries.
Proceed is being used for:
- Financing the capital expenditure requirement towards Purchase of new machineries, lab equipment & other utilities for its manufacturing facility
- Financing the capital expenditure requirement for construction of new office building and manufacturing facility
- Repayment / prepayment, in full or part, of certain outstanding borrowings availed by the company
- Funding working capital requirements of the company
- General corporate purposes
Industry overview
Engineering is the largest industrial sector in India and accounts for 3.53% of the country's Gross Domestic Product (GDP). The country's engineering sector comprises manufacturing iron, steel, related products, non-ferrous metals, industrial machinery, automobiles, auto components, and other engineering products. The key goods exported under the industrial machinery category are IC (Internal combustion) engines and parts, industrial machinery for dairy, food processing, textiles, industrial machinery like boilers, parts, machinery for injecting moulding, valves, and ATMs. India became a permanent Washington Accord (WA) member in June 2014. It is now part of an exclusive group of 17 countries that are permanent signatories of the WA, an elite international agreement on engineering studies and the mobility of engineers.
India's engineering sector has witnessed remarkable growth over the last few years, driven by increased investment in infrastructure and industrial production. In 2019, the government announced an investment of $1.5 trillion in infrastructure development until 2026. In the Union Budget 2025-26, the government has allocated $129.03 billion to enhance the transport infrastructure, thereby signalling the demand for engineering sector. The engineering sector is an important component of the broader manufacturing sector, and the share of engineering products in overall manufacturing output is quite significant. It is also a highly organized sector dominated by large players employing over four million skilled and semi-skilled labour.
The government of India has implemented various export promotion schemes, such as the Zero Duty Export Promotion Capital Goods (EPCG) scheme, Towns of Export Excellence (TEE), Market Access Initiative (MAI), etc. These schemes are aimed at encouraging the exporter and to help increase the revenue from international markets. Also, schemes such as duty exemption, advance authorization, duty-free import, rebate on service tax, etc. have been implemented to ease raw material imports. The Indian Engineering Exposition (INDEE), a brand of EEPC India, is one of the largest engineering expositions in the world. Apart from the specific schemes mentioned above, the Government of India has taken several initiatives to support and enhance the competitiveness of the domestic engineering goods manufacturing firms such as the ‘Make in India’ initiative, PLI scheme for Automobile, and Auto components, PLI scheme for National Programme on Advanced Chemistry Cell (ACC) Battery Storage, FAME INDIA II scheme, Capital goods scheme, Industry 4.0.
Pros and strengths
Existing client relationship: It is committed to consistently addressing its customer’s needs regarding its products. It prioritizes meeting specific customer requirements and timely order delivery as fundamental factors for the company's growth. The company has consistently strived to ensure customer satisfaction by actively taking measures to meet customer demand, ensuring timely order fulfilment, and maintaining consistent product quality. As a result, it has seen a strong client relationship that demonstrate the trust placed in it by its customers. It provides comprehensive after-sales services and assures its customers that should they encounter any quality issues with its products; it will facilitate returns.
Quality service: It believes in providing quality and timely service to its customers. It has set very high standards for itself when it comes to timelines and quality of service it provides to its customers. The stringent systems ensure that all the products reach its customers on stipulated time and there are minimum errors to ensure reduced product rejection. Its quality service has earned it a goodwill from its customers, which has resulted in customer retention and order repetition. It has also helped it to add to its existing customer base. The company focuses on maintaining the level of consistently in its service, thereby building customer loyalty for its Brand.
Well established systems and procedures: Its organization prides itself on its robust systems and procedures meticulously designed for the seamless implementation of both machinery and manpower to achieve current and long-term objectives. Through a comprehensive approach, it ensures that every aspect of production, from manufacturing to final product, is optimized for efficiency and quality. Its machinery is carefully selected and maintained to meet industry standards, enhancing productivity and minimizing downtime. Simultaneously, its workforce is trained extensively to operate these machines proficiently, fostering a culture of expertise and innovation.
Risks and concerns
Exposure to foreign exchange rate volatility: The company manufactures precision-engineered wear components and spare parts used in underwater pelletizing systems, including pelletizing die plates, pelletizing blades/knives, blade holders/cutter hubs, tapped driving bushes and other spare components, which are supplied to customers across various international markets. During period ended on July 31, 2026 and Fiscal 2026, 2025 and 2024, revenue from operations outside India accounted for 84.34%, 84.73%, 82.43% and 80.38%, respectively, of its revenue from operations. It is exposed to foreign exchange fluctuation risks due to its significant export operations and procurement of certain raw materials and traded components from overseas markets, and it does not currently enter into any hedging arrangements or derivative contracts to manage such foreign currency exposure. Any adverse movement in foreign exchange rates could materially and adversely affect its business, financial condition, results of operations and cash flows.
Significant revenue dependence on top ten customers: It is dependent on a few customers for a major part of its revenues. Its sales are concentrated to a few customers with its top 10 customers aggregating to Rs 958.49 lakh, Rs 1934.93 lakh, Rs 1613.87 lakh and Rs 742.75 lakh contributing 80.71%, 65.71%, 73.03% and 70.45%, respectively, of its revenues during the period ended on July 31, 2026 and the Fiscal years 2026, 2025 and 2024 respectively. Further it does not enter into long-term arrangements with its customers and any failure to continue its existing arrangements or maintain its relationships with such customers could adversely affect its business and results of operations, financial condition and cash flows.
Exposure to raw material price volatility: Steel (Alloy & Stainless Steel) constitutes one of its major raw materials and forms a significant portion of its total raw material cost. Steel accounted for Rs 228.45 lakh (65.96%), Rs 98.85 lakh (37.47%), Rs 44.61 lakh (34.28%), and Rs 28.76 lakh (34.97%) of its total raw material purchases for the period ended on July 31, 2026 and for the Fiscals 2026, 2025 and 2024, respectively. It procures steel from its approved vendors primarily located in the domestic market, based on purchase orders, and it does not have any long-term purchase agreements or firm price commitments with its steel suppliers. While its reliance on domestic sourcing reduces its exposure to certain risks associated with cross-border procurement, such as import duties, foreign exchange fluctuations and international logistics disruptions, it remains exposed to fluctuations in domestic steel prices on account of factors including changes in demand-supply dynamics in the domestic steel industry, input cost pressures faced by its suppliers (such as iron ore and coal prices), changes in government policies, duties or levies applicable to steel or its inputs, and general inflationary trends in the domestic market.
Outlook
Maxwell Engineering Solutions manufactures pelletizing die plates, pelletizing blades/knives, blade holders/cutter hub, tapped driving bush for underwater pelletizing systems and other spare items. It tailors its product portfolio to meet customer specifications, offering various kind of blade holder’s / cutter hub is straight, and inclined geometry, including custom build designs for all kind of underwater pelletizers and water ring pelletizers. This customization capability ensures that resources are allocated efficiently to produce products that are in demand, maximizing profitability and minimizing waste. On the concern side, a significant portion of its revenue for the period ended on July 31, 2026 and for last three years i.e. fiscal year 2026, 2025 & 2024 are 84.34%, 84.73%, 82.43% & 80.38%, respectively, is derived from exports to international markets, including USA, Germany, Netherland, Israel Saudi Arabia, Oman, Indonesia, Japan, Luxembourg, Vietnam, Italy, Switzerland, Austria, South Africa, Australia, Thailand, etc. Accordingly, its business is significantly exposed to risks associated with international trade, cross-border logistics and changes in global economic and geopolitical conditions.
The company is coming out with a maiden IPO of 36,48,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 150-158 per equity share. The aggregate size of the offer is around Rs 54.72 crore to Rs 57.64 crore based on lower and upper price band respectively. On performance front, revenue from operations increased 33.25% from Rs 2,209.98 lakh in Fiscal 2025 to Rs 2,944.83 lakh in Fiscal 2026. Profit after tax increased to Rs 1,186.17 lakh during fiscal 2026 from Rs 917.57 lakh during fiscal 2025, representing an increase of 29.27%.
Meanwhile, to meet the rising demand for its products, it is expanding its production capacity by investing in advanced machineries. This will enable it to scale its operations, reduce delivery times, and serve a broader range of customer needs more efficiently. Its product range includes pelletizing die plates, pelletizing blades/knives, blade holders/cutter hub, tapped driving bush for underwater pelletizing systems and other spare items used across various industrial applications. Going forward, improving efficiency is an important part of its growth plan. It is setting up a new manufacturing facility and using updated technologies to make its production process smoother, reduce waste, and improve output. These steps help it use its resources more effectively and support future growth. It also follows regular quality checks to help ensure that its products meet industry requirements. With these improvements, it aims to respond to customer needs more quickly, manage costs better, and continue offering reliable products and services.
