Highness Microelectronics

• Highness Microelectronics is coming out with an initial public offering (IPO) of 18,06,000 shares in a price band of Rs 114-120 per equity share. 
• The issue will open on March 24, 2026 and will close on March 27, 2026.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 11.40 times of its face value on the lower side and 12.00 times on the higher side.
• Book running lead manager to the issue is Fintellectual Corporate Advisors.
• Compliance Officer for the issue is Preeti Paresh Rathi.

Profile of the company

Highness Microelectronics is an ISO 9001:2015 and ISO 13485:2016 certified company, engaged in the design, development, integration, assembly and manufacture of digital-imaging solutions. The company operates in two main categories namely ‘Off the Shelf Products’ and ‘Market Specific Solutions / Project’. Under ‘Products’ category, it offers Flat Panel Displays like Thin Film Transistor (TFT) and Liquid Crystal Display (LCD) module, Display Controllers, Electrolumiscent Displays, Vacuum Fluorescent Displays, Touch Screens, Cable Assembly & Harness, Backlight Drivers & Inverters and ‘Display-Enhancement solutions. 

Further under ‘Display-Enhancement Solutions’, it undertakes value addition process to ruggedize Commercial off the Shelf (COTS) displays; these value addition processes include Backlight enhancement for High-Brightness for Outdoor & Direct-Sunlight readability, Wide-Operating Temperature for extreme-climatic conditions, Electro-Magnetic Interference (EMI) shielding for mission critical operations, Night Vision Compatibility (‘NVIS’), Optical-Bonding , Vandal-Proofing as well as outdoor visibility, Adding cover glass to achieve Anti-Reflective, Anti-Glare, AntiFingerprint/Smudge etc. 

Its ‘Market-specific solution/ Project’ category includes Display-monitors in form factors such as Open-Frame Displays, Panel-Mount Displays, Industrial Grade Displays and Medical Grade Display Monitors. Its industry verticals for these display monitors are Industrial Automation, Medical & Healthcare, Railways (Trains & Metros and Automobiles) and Defence & Aerospace.

Proceed is being used for:

• Funding the capital expenditure towards setting up an assembly line at factory situated at TTC Industrial Area, Rabale, Mumbai.
• Funding the working capital requirement of the company.
• Repayment and/or pre-payment, in full or part, of borrowing availed by the company. 
• General corporate purpose.

Industry Overview

The Indian electronics system design and manufacturing (ESDM) sector is one of the fastest growing sectors in the economy and is witnessing a strong expansion in the country. The ESDM market in India is well known internationally for its potential for consumption and has experienced constant growth. The ESDM industry includes electronic hardware products and components relating to information technology (IT), office automation, telecom, consumer electronics, aviation, aerospace, defence, solar photovoltaic, nano electronics and medical electronics. The industry also includes design related activities such as product designing, chip designing, Very Large-Scale Integration (VLSI), board designing and embedded systems. With various government initiatives aiming to boost domestic manufacturing, India has already started witnessing initial movement with increased production and assembly activities across products such as mobile phones and other consumer electronics. 

The ESDM industry includes electronic hardware products and components relating to information technology, office automation, telecom, consumer electronics, aviation, aerospace, defence, solar photovoltaic, nano electronics and medical electronics. The industry also includes design related activities such as product designing, chip designing, Very Large-Scale Integration board designing and embedded systems. The ESDM market in India is anticipated to increase at a CAGR of 16.1% between FY19 and FY25 owing to strong demand, supportive government policies and increased digitalisation. India's electronics industry is targeting a manufacturing output of Rs 43,10,000 crore ($500 billion) by FY30 which requires a fivefold increase in production. This growth is also expected to create 12 million jobs by FY27. The total budgetary allocation for the MeitY in the Union Budget FY26 stood at Rs 26,026 crore ($3.08 billion), reflecting an 18.64% increase over the budget estimates of FY25. India's remarkable advancement in electronics exports, which have now secured a position among the top three globally. During FY25 the exports of electronic goods were recorded at Rs 3,25,479 crore as compared to Rs 2,46,011 crore in FY24.

India’s domestic investment outlook for FY26 and beyond remains strong, supported by sustained economic expansion, steady policy momentum, and improving investor confidence. The government’s continued push through initiatives such as ‘Make in India’, ‘Aatmanirbhar Bharat’, and the Production-Linked Incentive (PLI) schemes is expected to drive capacity creation and strengthen industrial output. Emerging sectors such as semiconductors, renewable energy, electric mobility, and advanced manufacturing are likely to see significant investments over the next few years, reflecting India’s growing importance in global supply chains. The country’s stable macroeconomic fundamentals and rising private sector participation are also expected to keep investment activity buoyant in FY26. 

Pros and strengths

Quality standards and ISO certified organization: Its strength is in providing quality services to its clients. It is an ISO 13485:2016 and ISO 9001:2015 certified by British Standards Certification and Inspection Council (BSCIC) for the manufacturing products. All its products undergo quality and test checks in accordance with established Standard Operating Procedures (SOPs), ensuring they meet the standards and guarantee customer satisfaction. This process helps it deliver products without defects. Its quality departments at manufacturing sites are fully equipped to perform comprehensive testing in compliance with ISO standards. 

Weather-resistant display solutions: The company has developed durable products designed to perform in the demanding environments. It developed products designed to withstand harsh conditions, including displays and controllers built to endure heavy vibrations, extreme temperatures, and rainy environments. Its commitment to quality ensures that these solutions continue to operate smoothly, providing consistent results under challenging circumstances.

Key customers base: The company has built a strong reputation, which has played a key role in retaining its valued clients. Its ongoing relationships with existing customers foster repeat business and serve as a competitive advantage in attracting new clients and expanding its reach. The long-term connections it has cultivated with major customers have been vital to its growth. Over the years, it has developed a solid and loyal customer base, and while it don’t have formal long-term agreements in place, many customers continue to return. This consistent support has been instrumental in strengthening its business over time. 

Risks and concerns

Dependence on key customers and revenue concentration: It specializes in the design, development, integration, assembly, and manufacturing of digital imaging solutions. Its offerings are categorized into two primary segments namely products and market-specific solutions. While its customer base may vary yearly, a substantial portion of its revenue is derived from its top 10 customers. Consequently, its business performance and financial health in any given fiscal year are closely linked to the contributions of these key clients. Its top 10 clients contributed 82.43%, 84.51%, 72.01% and 54.86% of its total revenue for the period ended December 31, 2025 and in the fiscal year 2025, 2024 and 2023, respectively. The loss of one or more of these customers, or a reduction in the revenue generated from them, could have a material adverse effect on its business, financial condition, operating results, and cash flows.

Reliance on China-based imports and associated market risks: The company sources a substantial portion of its raw materials from international markets, with significant imports from China, based on considerations such as quality, pricing, inventory requirements, and credit terms. This sourcing strategy enables it to leverage geographical advantages, ensuring consistent quality and timely delivery. For the period ended December 31, 2025 and financial years ended March 31, 2025, 2024, and 2023, imported raw materials constituted 92.94%, 89.68%, 84.41%, and 88.38% of its total purchases, respectively. Such geographical concentration of its business in the said region heightens its exposure to adverse developments related to competition, trade war, imposition of tariff on imports, as well as economic and demographic changes in these regions, which may adversely affect its business prospects, financial conditions and results of operations.

Exposure to demand fluctuations in industrial automation industry: It caters to market specific solutions to various industries such as Health & Medicare, Railways, Industrial Automation and Defence & Aerospace and substantial portion of its revenue concentrated from Industrial Automation Industry in which it offers Industrial Displays to be deployed for applications such as Textile Spinning & Weaving Machines, Automotive manufacturing lines, Computer Numatics Controls (CNC) etc. For the period ended December 31, 2025 and financial years ended March 31, 2025, 2024, and 2023, the Industrial Automation Industry constituted 4.57%, 49.45%, 48.95%, and 34.97% of its total sales, respectively. The loss of any major customer within that segment could adversely affect its revenue and profitability. 

Outlook

Highness Microelectronics is an ISO 9001:2015 and ISO 13485:2016 certified company, engaged in the design, development, integration, assembly and manufacture of Digital-Imaging Solutions. The company operates in two main categories namely ‘Off the Shelf Products’ and ‘Market Specific Solutions / Project’. Under ‘Products’ category, it offers Flat Panel Displays like Thin Film Transistor (TFT) and Liquid Crystal Display (LCD) module, Display Controllers, Electrolumiscent Displays, Vacuum Fluorescent Displays, Touch Screens, Cable Assembly & Harness, Backlight Drivers & Inverters and ‘Display-Enhancement solutions. On the concern side, its revenue is mainly concentrated in few key states, which collectively contribute a substantial portion of its total income. Consequently, any unfavorable economic, regulatory, or operational changes in these key regions could significantly affect its business performance, revenue streams, and overall financial outcomes. Moreover, its business is dependent on the efficient functioning of its manufacturing facilities, and any obsolescence, damage, theft, breakdown, or failure to properly repair and maintain its machinery may adversely affect its operations, cash flows, financial condition, and results of operations.

The company is coming out with a maiden IPO of 18,06,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 114-120 per equity share. The aggregate size of the offer is around Rs 20.59 crore to Rs 21.67 crore based on lower and upper price band respectively. On performance front, the revenue from operations for FY25 stood at Rs 1,40,737.82 thousand whereas in FY24 it was Rs 1,07,046.22 thousand representing an increase of 31.47%. Moreover, profit after tax for the period ended March 31, 2025, stood at Rs 25,226.00 thousand and for the year ended March 31, 2024 it was Rs 23,879.62 thousand representing an increase of 5.34%.

The company intends to leverage its manufacturing expertise and strong quality control processes to expand its product range across Industry Automation, Healthcare, Railways, and Defense. As part of this strategy, it is enhancing its capabilities to produce a diverse mix of both new and existing products, enabling it to secure more orders from current and potential customers. Going forward, it is committed to continuously enhancing its quality control processes to deliver top-tier products. Upholding high-quality standards is essential to meet both customer expectations and regulatory requirements. By regularly assessing product quality and implementing timely improvements, it ensures these standards are maintained. Further, the company intends to maintain strong relationships with its suppliers, customers, and employees.