The ISO-certified digital imaging solutions company is raising Rs 21.67 crore. Issue closes March 27.
Highness Microelectronics Limited, a manufacturer and assembler of digital imaging and display solutions for defence, medical, industrial, and railway applications, opens its SME IPO today on BSE SME and closes on March 27.
The company, which holds ISO 9001:2015 and ISO 13485:2016 certifications, designs, develops, and manufactures flat panel displays, display controllers, touch screens, and ruggedised display monitors for mission-critical applications including defence and aerospace, medical and healthcare, railways and metros, and industrial automation. As of December 2025, it has 47 employees. Listing is expected on April 2 on BSE SME.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | March 24, 2026 |
| Issue Closes | March 27, 2026 |
| Price Band | Rs 114 – Rs 120 per share |
| Issue Size | Rs 21.67 crore (at upper band) |
| Fresh Issue | Rs 19.84 crore (16,53,600 shares) |
| Offer for Sale | Rs 1.83 crore (1,52,400 shares) |
| Face Value | Rs 10 per share |
| Minimum Application | 2,400 shares |
| Minimum Investment (Retail) | Rs 2,88,000 at upper band |
| Post-Issue Market Cap | Rs 61.96 crore |
| IPO as % of Post-IPO Capital | 34.98% |
| Lead Manager | Fintellectual Corporate Advisors Pvt. Ltd. |
| Registrar | Skyline Financial Services Pvt. Ltd. |
| Market Maker | Rainbow Securities Pvt. Ltd. |
| Listing | BSE SME |
| Listing Date | April 2, 2026 |
Post-IPO paid-up equity capital will stand at Rs 5.16 crore — a very small base that the review note flags as likely meaning a longer gestation period before any potential migration to the mainboard.
Objects of the Issue
| Object | Amount (Rs crore) |
|---|---|
| Capex for assembly line | 5.27 |
| Repayment of borrowings | 1.89 |
| Working capital requirements | 6.71 |
| General corporate purposes | Balance |
| Total Fresh Issue | 19.84 |
What the Company Does
Highness Microelectronics operates across two categories. Under Off-the-Shelf Products, it offers TFT and LCD display modules, display controllers, electroluminescent displays, vacuum fluorescent displays, touch screens, cable assemblies and harnesses, backlight drivers and inverters, and display enhancement solutions.
The display enhancement work involves ruggedising commercial off-the-shelf displays through processes including backlight enhancement for outdoor readability, wide operating temperature capability for extreme climates, electromagnetic interference shielding for mission-critical operations, night vision compatibility, optical bonding, and vandal-proofing.
Under Market-Specific Solutions, the company manufactures display monitors in formats including open-frame displays, panel-mount displays, industrial grade displays, and medical grade display monitors. The defence and aerospace vertical and the medical and healthcare vertical are the key high-value segments. The company does not have formal long-term agreements with its customers but reports consistent repeat business from its established client base.
Financials
| Particulars (Rs crore) | FY23 | FY24 | FY25 | 9M FY26 |
|---|---|---|---|---|
| Total Income | 9.91 | 10.99 | 14.17 | 14.41 |
| PAT | 0.44 | 2.39 | 2.52 | 3.41 |
| PAT Margin | 4.58% | 22.31% | 17.92% | 24.13% |
| RoCE | 49.76% | 75.02% | 42.09% | 36.88% |
| Average EPS (3 years) | 6.07 | |||
| Average RoNW (3 years) | 55.96% |
Revenue has grown from Rs 9.91 crore in FY23 to Rs 14.17 crore in FY25, with 9M FY26 already at Rs 14.41 crore — suggesting the full year will comfortably exceed FY25. PAT has improved sharply, with the 9M FY26 figure of Rs 3.41 crore already exceeding full-year FY25 PAT of Rs 2.52 crore.
PAT margins at 24.13% in 9M FY26 are notably high for a small-scale electronics assembly operation. The review note flags the sudden jump in bottom-line performance from FY24 onwards as a concern over sustainability. Total borrowings stood at Rs 8.20 crore as of December 2025 — and even after the Rs 1.89 crore earmarked for debt repayment from IPO proceeds, the debt-to-equity ratio will remain above 1x post-listing.
Valuation
| Metric | Value |
|---|---|
| P/E on FY25 earnings (post-issue) | 24.54x |
| P/E on annualised FY26 earnings (post-issue) | 13.62x |
| P/BV on pre-IPO NAV of Rs 28.57 | 4.20x |
| P/BV on post-IPO NAV of Rs 57.85 | 2.07x |
No listed peers are cited in the offer document. At 24.54x FY25 earnings, the issue is described in the independent review as aggressively priced. On annualised FY26 earnings the implied P/E falls to 13.62x, but this assumes the current run-rate is maintained — which the review explicitly questions given the recency of the margin improvement.
Risks to Consider
Sustainability of margins. PAT margins jumped from 4.58% in FY23 to 22.31% in FY24 and have remained elevated since. The review notes this raises eyebrows and questions whether these levels are structural or temporary. Very small scale. With 47 employees, Rs 14 crore in annual revenue, and a post-IPO market cap of Rs 61.96 crore, this is a micro-cap business with limited financial cushion. High borrowings. Total debt of Rs 8.20 crore against a tiny equity base means the company will remain leveraged post-IPO despite the partial repayment. No formal customer contracts. The company relies on repeat business without long-term agreements, making revenue continuity dependent on relationship continuity. Tiny post-IPO equity capital. At Rs 5.16 crore, the paid-up capital is extremely small, which typically means a long wait for any mainboard migration.