POOJAA PRECISION ENGG LIMITED IPO
Registrar: LINK INTIME INDIA PRIVATE LIMITED · Lead: HEM SECURITIES LIMITED · Listing on BSE
IPO Lot Size
400 shares / lot · ₹301 upper bandInvestors can bid for a minimum of 400 shares and in multiples thereof.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 400 | ₹1,20,400 |
| Retail (Max) | 1 | 400 | ₹1,20,400 |
| S-HNI (Min) | 2 | 800 | ₹2,40,800 |
| S-HNI (Max) | 8 | 3,200 | ₹9,63,200 |
| B-HNI (Min) | 9 | 3,600 | ₹10,83,600 |
About the company
Poojaa Precision Engg. Limited is a precision engineering company specializing in the manufacturing of aluminium die casting and machining components. The company caters to a diverse range of sectors including automotive (including electric vehicle applications), agriculture, defence, energy, healthcare, and engineering goods industries.
With over 600 SKUs, the company's manufacturing facilities are equipped for gravity die casting (GDC), low-pressure die casting (LPDC), high-pressure die casting (HPDC), and machining processes. Poojaa Precision Engg. Limited provides integrated solutions encompassing design, engineering, melting, casting, cleaning, and value-added services, and is expanding into magnesium casting. The company has an increasing customer base and exports to international markets like Germany, United States, Italy, and Switzerland.
Objectives of the issue
- Funding capital expenditure towards setting up of manufacturing facility at Gat No. 382,383, 386, 387, 312 Village, Tal. - Khed, Dist. - Pune – 410501, India.
- To meet working capital requirements.
- General Corporate Purpose.
Key strengths
- Integrated manufacturing capabilities.
- Design capabilities with emphasis on customer specifications & quality standards.
- Diverse customer base with sustained, long-standing relationships.
- Offering precision engineering solutions with a comprehensive product portfolio.
- Experienced promoters and management team.
- Track record of consistent revenue growth and profitability.
Key risks
- Reliance on a limited number of key customers and OEMs, with potential adverse effects from order cancellations or reductions.
- Substantial dependence on the availability and cost of raw materials, particularly Aluminium, and vulnerability to price volatility.
- Reliance on third-party suppliers without firm commitments, leading to risks of supply disruption or inability to negotiate favorable terms.
- Significant portion of revenue derived from the automotive sector, making the business vulnerable to adverse changes in this industry.
- Operations are subject to environmental, health, and safety laws; violations could result in material liabilities and reputational harm.
- Proposed expansion plans are subject to risks of unanticipated delays, cost overruns, and challenges in commercializing new magnesium casting products due to limited prior experience.
- Substantial capital expenditure and working capital requirements may necessitate additional financing, impacting profitability and cash flows.
- Pricing pressure from customers or inability to fully pass on costs could impact revenue and profitability.
- Inability to trace certain historical and statutory corporate records, potentially leading to regulatory actions and penal consequences.
- Dependence on third parties for transportation and timely product delivery; delays, cost fluctuations, or loss/damage of goods could adversely affect the supply chain.