Poojaa Precision Engineering will launch its ₹160 crore IPO on July 28 with a price band of ₹285–301 per share. The auto components maker plans to use the funds to expand manufacturing capacity in Pune and enter the magnesium components segment. Investors can bid for the issue until July 30, with a planned listing on the BSE SME platform on August 4.
Detailed Coverage
Pune-based auto component manufacturer Poojaa Precision Engineering is set to enter the primary market with its Initial Public Offering (IPO) on July 28, 2026. The company plans to raise ₹160 crore through this fresh issue of 53.1 lakh equity shares. The price band for the IPO has been fixed at ₹285 to ₹301 per share, and the subscription window will remain open until July 30. An anchor investor round is scheduled for July 27.
Expanding Capacity and Product Portfolio
The company specializes in aluminium die-casting and precision machining, serving clients in sectors like automotive, agriculture, defense, and energy. A major portion of the IPO proceeds—approximately ₹106.3 crore at the upper price band—is dedicated to building a new manufacturing unit in Pune, referred to as Unit III.
Beyond expanding current capacity, the company is also looking to move into higher-value products by manufacturing precision magnesium components. It is currently setting up a dedicated facility, Unit IV, to focus on sample development and testing. However, the commercial success of this move will depend on securing necessary approvals from Original Equipment Manufacturers (OEMs). Investors should track the progress of these approvals and the eventual utilization of the new units, as project execution and market acceptance remain important for long-term growth.
Financial Growth Trends
The company’s financials for the fiscal year ending March 2026 reflect a period of expansion. It reported a net profit of ₹30.9 crore, marking a 29.1 percent increase compared to the ₹23.9 crore profit recorded in the previous fiscal year. During the same period, revenue grew by 32.4 percent to reach ₹293.9 crore, up from ₹222 crore. As the company uses the IPO proceeds for both capacity expansion and working capital needs of ₹30 crore, investors may monitor whether the business can maintain these growth margins while managing the debt and cash flow requirements associated with setting up new facilities.
Market Context and Listing
Poojaa Precision Engineering caters to a client base of 58 companies across both domestic and international markets. The IPO is being managed by Hem Securities, and the stock is expected to debut on the BSE SME platform on August 4, 2026. As an SME IPO, liquidity and trading volumes post-listing are factors that investors often consider. The final impact of this expansion will depend on the company's ability to maintain its existing client relationships while successfully diversifying its material base into magnesium components without incurring significant cost overruns or operational delays.