IIT Madras likely to fetch ₹70 crore via stake sale in Indo-MIM IPO, to invest in innovation 

IIT Madras plans to raise ₹70 crore from Indo-MIM IPO to invest in innovation through equity share sales.

The Indian Institute of Technology, Madras (IIT Madras) will monetise around half of its total holding worth ₹140 crore from the forthcoming Initial Public Offering (IPO) of Indo MIM Ltd., a company which provide end-to-end solutions for the manufacture of precision engineering components for automotive, aerospace, defence, and consumer product companies using metal injection moulding (MIM) technology.

Indo MIM Ltd. promoter Krishna Chivukula, who studied in IIT Madras has gifted 1% stake of his company to IIT Madras acknowledging its contribution in shaping the company’s current positioning as the largest manufacturer globally of precision engineering components using MIM technology.

IIT Madras is proposing to sell up to 23,07,700 equity shares of face value of ₹1 each out of its total holding of 46,15,385 equity shares, which account for around 1% of the total equity capital of Indo MIM Ltd.

The value of IIT Madras’ holding is estimated at more than ₹140 crore at the expected valuation, as per market and investment banking officials.

If all IIT alumnus turned entrepreneurs offer sweat equity to IITs in India, then they will set a good example of helping their alma mater to monetize holding which could be invested in innovation labs and start-ups, analysts said.

Generally, only existing investors (private equity players, venture capitals and promoters) get money from offer for sales (OFS), but allowing IITs to monetize through IPOs would be in national interest, they said.