Poojaa Precision Engg shares list at 56% premium over IPO price on BSE SME platform
Poojaa Precision Engineering listed on the BSE SME platform with a significant premium. The company's initial public offering received an overwhelming subscription response from investors. Grey market expectations indicated a higher listing pric...
By Ritesh Presswala, ETMarkets.com | Updated:
ANI
Poojaa Precision Engineering is set for its BSE SME debut today, with a 78% GMP indicating a strong listing.
Poojaa Precision Engineering Ltd. made a strong stock market debut on the BSE SME platform on Tuesday, listing at a 56.1% premium to its IPO price. The stock opened at Rs 470 against the issue price of Rs 301 per share.
The debut, however, fell short of grey market expectations. The stock had commanded a grey market premium (GMP) of around 78% ahead of the listing, signalling expectations of a stronger debut.
The Rs 159.83 crore IPO was entirely a fresh issue of 53 lakh equity shares and was priced at Rs 301 per share. Ahead of the public issue, the company also raised Rs 45.14 crore from anchor investors, reflecting strong institutional confidence.
Poojaa Precision Engineering’s public issue received an exceptional response from investors, with the IPO getting subscribed 259.42 times overall. The strong demand was witnessed across all investor categories, reflecting heightened interest in the company’s market debut.
The Non-Institutional Investor (NII) segment led the subscription activity with 342.50 times subscription, followed by the retail investor category, which was subscribed 247.55 times. The Qualified Institutional Buyer (QIB) portion also saw strong participation, receiving 206.46 times subscription.
The overwhelming response highlights strong investor confidence in Poojaa Precision Engineering’s business model, growth prospects, and expansion plans.
How the company plans to use IPO proceeds
Poojaa Precision Engineering intends to utilise the net proceeds from the issue primarily to strengthen its manufacturing capabilities and support future growth.
The company plans to invest Rs 106.34 crore towards setting up a new manufacturing facility, while Rs 30 crore has been earmarked for working capital requirements. The remaining funds will be deployed for general corporate purposes, taking the total planned utilisation of net proceeds to Rs 136.34 crore.
Strong financial performance supports growth story
Poojaa Precision Engineering delivered an impressive financial performance in FY26, highlighting its operational strength and profitability.
The company reported revenue from operations of Rs 293.86 crore, while EBITDA stood at Rs 51.78 crore, resulting in a healthy EBITDA margin of 17.62%.
Profitability remained equally strong, with Profit After Tax (PAT) of Rs 30.90 crore and a PAT margin of 10.52%.
The company's balance sheet also reflects healthy financial strength. As of FY26, its net worth stood at Rs 131.16 crore, while Return on Equity (ROE) was 28.18% and Return on Capital Employed (ROCE) reached 26.38%, indicating efficient capital deployment and strong value creation for shareholders.
The robust financial performance positions the company well as it enters its next phase of expansion.
About Poojaa Precision Engineering Ltd.
Incorporated in August 1992, Poojaa Precision Engineering Ltd. is a precision engineering company engaged in the manufacturing of aluminium die-cast and precision-machined components used in engines, drivetrains, EV powertrains and electrical systems.
The company manufactures over 600 SKUs, including several safety-critical components, through integrated capabilities spanning Gravity Die Casting (GDC), Low-Pressure Die Casting (LPDC), High-Pressure Die Casting (HPDC), machining, assembly and engineering services.
Its products cater to a wide range of industries, including automotive (passenger vehicles, commercial vehicles, two-wheelers and electric vehicles), agriculture, defence, energy, healthcare, aerospace and engineering goods.
Poojaa Precision operates advanced manufacturing facilities equipped with melting units, casting lines, machining centres and quality assurance infrastructure, enabling end-to-end solutions from product design and engineering to casting, machining, assembly and finishing.
The company serves a diversified client base comprising leading OEMs, Tier-1 automotive suppliers and international customers across Germany, the United States, Italy and Switzerland. It has also recently expanded into the aerospace sector through approved vendor partnerships, opening up a new avenue for future growth.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
The debut, however, fell short of grey market expectations. The stock had commanded a grey market premium (GMP) of around 78% ahead of the listing, signalling expectations of a stronger debut.
The Rs 159.83 crore IPO was entirely a fresh issue of 53 lakh equity shares and was priced at Rs 301 per share. Ahead of the public issue, the company also raised Rs 45.14 crore from anchor investors, reflecting strong institutional confidence.
Poojaa Precision Engineering’s public issue received an exceptional response from investors, with the IPO getting subscribed 259.42 times overall. The strong demand was witnessed across all investor categories, reflecting heightened interest in the company’s market debut.
The Non-Institutional Investor (NII) segment led the subscription activity with 342.50 times subscription, followed by the retail investor category, which was subscribed 247.55 times. The Qualified Institutional Buyer (QIB) portion also saw strong participation, receiving 206.46 times subscription.
The overwhelming response highlights strong investor confidence in Poojaa Precision Engineering’s business model, growth prospects, and expansion plans.
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How the company plans to use IPO proceeds
Poojaa Precision Engineering intends to utilise the net proceeds from the issue primarily to strengthen its manufacturing capabilities and support future growth.
The company plans to invest Rs 106.34 crore towards setting up a new manufacturing facility, while Rs 30 crore has been earmarked for working capital requirements. The remaining funds will be deployed for general corporate purposes, taking the total planned utilisation of net proceeds to Rs 136.34 crore.
Strong financial performance supports growth story
Poojaa Precision Engineering delivered an impressive financial performance in FY26, highlighting its operational strength and profitability.
The company reported revenue from operations of Rs 293.86 crore, while EBITDA stood at Rs 51.78 crore, resulting in a healthy EBITDA margin of 17.62%.
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Profitability remained equally strong, with Profit After Tax (PAT) of Rs 30.90 crore and a PAT margin of 10.52%.
The company's balance sheet also reflects healthy financial strength. As of FY26, its net worth stood at Rs 131.16 crore, while Return on Equity (ROE) was 28.18% and Return on Capital Employed (ROCE) reached 26.38%, indicating efficient capital deployment and strong value creation for shareholders.
ADVERTISEMENT
The robust financial performance positions the company well as it enters its next phase of expansion.
About Poojaa Precision Engineering Ltd.
Incorporated in August 1992, Poojaa Precision Engineering Ltd. is a precision engineering company engaged in the manufacturing of aluminium die-cast and precision-machined components used in engines, drivetrains, EV powertrains and electrical systems.
The company manufactures over 600 SKUs, including several safety-critical components, through integrated capabilities spanning Gravity Die Casting (GDC), Low-Pressure Die Casting (LPDC), High-Pressure Die Casting (HPDC), machining, assembly and engineering services.
Its products cater to a wide range of industries, including automotive (passenger vehicles, commercial vehicles, two-wheelers and electric vehicles), agriculture, defence, energy, healthcare, aerospace and engineering goods.
Poojaa Precision operates advanced manufacturing facilities equipped with melting units, casting lines, machining centres and quality assurance infrastructure, enabling end-to-end solutions from product design and engineering to casting, machining, assembly and finishing.
The company serves a diversified client base comprising leading OEMs, Tier-1 automotive suppliers and international customers across Germany, the United States, Italy and Switzerland. It has also recently expanded into the aerospace sector through approved vendor partnerships, opening up a new avenue for future growth.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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