Hy-Tech Engineers IPO Day 2: Issue subscribed 15.13x so far. GMP hints 57% listing gain. Apply or not?

Hy-Tech Engineers IPO opened for subscription on 24 August, giving investors a three-day window to bid for the issue. Hy-Tech Engineers IPO was fully subscribed within just 45 minutes of opening for bidding.

The company has fixed the Hy-Tech Engineers IPO price band at ₹50–53 per share, with a lot size of 283 shares. At the upper end of the price band, retail investors will need to invest a minimum of ₹14,999 for one lot. The Hy-Tech Engineers IPO allotment is expected to be finalised on 28 August, with the shares tentatively scheduled to list on the NSE and BSE on 1 September 2026.

Hy-Tech Engineers Limited is an engineering company engaged in the design, manufacture and supply of hydraulic fittings for industrial applications. With more than four decades of experience, the company offers over 11,000 SKUs, covering DIN-metric, JIC, ORFS, conversion and customised fittings.

The company reported a healthy financial performance in FY26, with total income rising 16% to ₹193.44 crore from ₹166.71 crore in FY25. Profit After Tax (PAT) increased 15% to ₹22.59 crore from ₹19.62 crore, reflecting consistent year-on-year growth in both revenue and profitability.

Hy-Tech Engineers IPO GMP today

Hy-Tech Engineers IPO GMP today, or grey market premium, is +30. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Hy-Tech Engineers share price was indicated at ₹83 apiece, which is 56.60% higher than the IPO price of ₹53.

Considering grey market trends over the past seven sessions, the IPO's GMP is showing an upward trend today, suggesting anticipation of a successful listing. Throughout this timeframe, experts noted that the GMP fluctuated between ₹5 and ₹30.

Hy-Tech Engineers IPO Subscription Status

Hy-Tech Engineers IPO subscription status was 7.74x on day 1. The retail portion is subscribed 11.22x, and NII portion has been booked 8.79x, QIBs portion received 51% bids.

The company has received bids for 14,04,79,502 shares against 1,81,45,406 shares on offer at 17:00 IST, according to BSE data.

Hy-Tech Engineers IPO Review

Swastika Investmart said Hy-Tech Engineers’ ability to maintain EBITDA margins of around 22% and net profit margins above 11.5% reflects its pricing power, supported by backward integration through its Nashik forging unit. The brokerage also highlighted the company’s improving balance sheet, with total debt declining to ₹29.76 crore in FY26 from ₹43.53 crore in FY25.

With ₹16 crore from the fresh issue proceeds earmarked for debt repayment, Swastika Investmart expects interest costs to decline, potentially supporting further net margin expansion in FY27. At around 22.3 times FY26 earnings, compared with several capital goods and engineering IPOs trading at valuations above 40 times earnings, the brokerage believes Hy-Tech Engineers offers a favourable balance between valuation comfort and growth visibility. It also highlighted the company’s ROCE of around 24.4% and debt reduction roadmap as key positives.

Meanwhile, Anand Rathi Share & Stock Brokers said that at the upper end of the price band, Hy-Tech Engineers is valued at a P/E of 22.25 times FY26 earnings and an EV/EBITDA of 12.15 times, implying a post-issue market capitalisation of approximately ₹502.7 crore. The brokerage believes the company is well positioned to benefit from growth in the hydraulic fittings industry and considers the issue reasonably valued given its growth prospects and established market presence. It has assigned a “Subscribe – Long Term” rating to the IPO.

Canara Bank Securities has recommended a “Subscribe” rating for the company, citing its strong market position, favourable industry tailwinds and attractive valuation.

According to the brokerage, the company commands a significant share of the Indian domestic market, higher than that of its peers, positioning it to benefit from industry growth and the expanding capital goods sector.

While the company has high revenue concentration, it serves around 170 customers, with nearly 90% being repeat clients. The brokerage also highlighted that several of these customer relationships have extended for approximately 25 years.

“At the upper price band of ₹53, the stock is valued at a price-to-earnings ratio of 19.63 times, compared with the industry average P/E of 148.55 times. This lower valuation relative to most peers suggests an attractive valuation,” Canara Bank Securities said.

Given these factors, the brokerage believes the company is well-positioned to perform over the long term and has assigned a “Subscribe” recommendation.

Hy-Tech Engineers IPO details

The Maharashtra-based company has revised the structure of its IPO, reducing the fresh issue component to ₹60 crore from ₹70 crore earlier, while increasing the offer-for-sale (OFS) component to nearly 1.43 crore shares from 1.19 crore shares, according to the RHP.

Of the net IPO proceeds, the company plans to utilise ₹29.96 crore to procure machinery and equipment to expand its Kavathe, Shirwal, and Pithampur Unit-I facilities. A further ₹16 crore will be used to repay outstanding loans, while the remaining proceeds will be allocated towards general corporate purposes.

New Berry Capitals Pvt Ltd is the sole book-running lead manager for the IPO, while Bigshare Services Pvt Ltd has been appointed as the registrar to the issue.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.