A 33-year-old aluminium die casting and precision engineering company plans to raise Rs 159.83 crore via the BSE SME platform
Poojaa Precision Engineering Ltd., a manufacturer of aluminium die casting and precision machined components, opens for subscription on July 28 with the issue closing on July 30. The company is listing on the BSE SME platform. At Rs 159.83 crore, this is among the largest SME issues of the current cycle. The company raised Rs 45.14 crore from anchor investors ahead of the IPO opening.
What the Company Does
Incorporated in August 1992 with over three decades of operating history, Poojaa Precision manufactures 600+ SKUs through integrated capabilities in gravity die casting (GDC), low-pressure die casting (LPDC), high-pressure die casting (HPDC), precision machining, assembly, and engineering services. Its products include safety-critical components used in engines, drivetrains, EV powertrains, and electrical systems.
The company serves automotive (commercial vehicles, passenger vehicles, two-wheelers, electric vehicles), agriculture, defence, energy, healthcare, aerospace, and engineering goods sectors — a genuinely diversified end-user base that mitigates concentration risk.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | July 28, 2026 |
| Issue Closes | July 30, 2026 |
| Listing | BSE SME (August 4, 2026) |
| Price Band | Rs 285 – Rs 301 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 159.83 crore (100% Fresh Issue) |
| Lot Size | 400 shares (min 2 lots = 800 shares) |
| Min. Retail Investment | Rs 2,40,800 |
| BRLM | Hem Securities Ltd. |
| Registrar | MUFG Intime India Pvt. Ltd. |
| Market Maker | Hem Finlease Pvt. Ltd. |
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue | 174.59 | 222.80 | 295.20 |
| PAT | 16.10 | 23.93 | 30.90 |
| PAT Margin | 9.27% | 10.78% | 10.52% |
| RoCE | 29.74% | 32.27% | 26.38% |
Revenue has grown consistently from Rs 174.59 crore in FY24 to Rs 295.20 crore in FY26 and PAT has grown from Rs 16.10 crore to Rs 30.90 crore. Average EPS is Rs 18.74 and average RoNW is 25.00%. Contingent liabilities of Rs 11.01 crore are flagged. The company paid a 30% dividend in FY24 and FY25 but skipped for FY26. At the upper band of Rs 301, the P/E is 19.43x on FY26 earnings and 25.08x on FY25 earnings. The P/BV is 3.19x on pre-IPO NAV of Rs 94.36 — post-IPO NAV data is absent from offer documents.
Listed peers Alicon Castalloy, Rico Auto, and Endurance Techno trade at P/E multiples of 26.5x, 33.2x, and 38.3x respectively — though the comparison is imperfect. Notably, the company’s PAT and RoCE margins outperform these listed peers — a positive on the face of it, but one that analysts flag as raising sustainability concerns.
BRLM Track Record: This is the 47th mandate from Hem Securities. Of the last 10 listings, 1 opened at par and the rest with premiums ranging from 1% to 90%, which is a decent track record.
Risks to Consider
While revenue growth is genuine and consistent, the PAT margin of 10.52% in FY26 outperforms listed peers in the same aluminium die casting segment — a divergence that analysts note is difficult to explain and raises sustainability concerns. RoCE has declined from 32.27% to 26.38% in FY26, suggesting capital is being deployed less efficiently. Contingent liabilities of Rs 11.01 crore add balance-sheet risk. The company skipped FY26 dividend after paying in FY24 and FY25.
Analyst View
Analysts note that Poojaa Precision has posted a surge in its top and bottom lines for the reported periods. However, the company’s PAT and RoCE margins outperform its listed peers in ways that raise eyebrows and concern over sustainability in a highly competitive and fragmented segment. The issue appears aggressively priced based on recent earnings, note analysts.