Poojaa Precision Engineering's ₹160 crore SME IPO saw record-breaking demand, drawing bids worth nearly ₹30,000 crore. The Pune-based manufacturer will use the funds to expand capacity for aluminum and magnesium components. Investors are now looking toward the listing date as the company scales operations in the automotive and electric mobility sectors.
Poojaa Precision Engineering concluded its ₹160 crore SME initial public offering (IPO) on the BSE SME platform with massive investor interest. The issue was subscribed 259.42 times, with total bids reaching approximately ₹30,000 crore. This level of demand establishes it as the most subscribed SME public issue of 2026 so far, highlighting strong interest in the specialized engineering manufacturing space.
The company offered shares within a price band of ₹285 to ₹301. Against an offer size of 38.10 lakh shares, investors applied for 98.85 crore shares. This significant oversubscription shows clear interest, though it also sets high expectations for the company’s performance after it lists on the exchange.
Strategic Capacity Expansion
Poojaa Precision plans to utilize the capital raised to significantly boost its production capabilities. The expansion strategy includes increasing the melting capacity at its third manufacturing unit by 15,000 metric tonnes per annum (MTPA) and adding 6,600 MTPA for component manufacturing and finishing. A notable part of this growth plan is the establishment of a fourth unit, which will focus on magnesium-based precision components. This shift is aimed at serving the evolving needs of the automotive and electric mobility industries, where lighter and more durable components are in high demand.
Financial Context and Risks
For the financial year 2025-26, the company recorded a revenue of ₹293.86 crore with a profit after tax of ₹30.90 crore. While the strong subscription numbers reflect investor optimism, it is important for shareholders to note that SME IPOs can be volatile due to lower liquidity compared to mainboard listings. Furthermore, while the grey market premium pointed toward a potential listing gain of around 75 percent, this figure had softened from earlier estimates of 90 percent on the final day of bidding. Grey market data is unofficial and should not be treated as a guarantee of actual listing performance.
Investors should closely track the company's ability to execute these capacity additions within the planned timelines. Any delay in setting up the new manufacturing units or a slowdown in demand from the automotive and electric vehicle sectors could put pressure on the company’s profit margins. As the company moves toward higher-value magnesium components, its ability to manage production costs and maintain strong relationships with key automotive clients will be critical for sustained growth.
The next milestone for the company will be the finalization of the share allotment, followed by the listing on the BSE SME platform. Investors should monitor official exchange communications for the allotment status and the formal listing date.