Vinir Engineering files IPO papers, comprises only OFS with no fresh issue component

Vinir Engineering IPO

Vinir Engineering, which manufactures precision-forged and machined components, has filed draft red herring prospectus (DRHP) with the SEBI as it plans to raise funds via initial public offering.

The IPO consists of entirely offer-for-sale of 5.33 crore equity shares by promoter Nitesh Gupta, the selling shareholder, with no fresh issue component.

This means the entire issue proceeds will go to the selling shareholder, and the company will not receive any money from the IPO. "The objects of the offer are to carry out the offer-for-sale of up to 5.33 crore equity shares each by the promoter, and achieve the benefits of listing the equity shares on the stock exchanges," said the company in its draft papers filed on January 17.

The Karnataka-based engineering solutions company manufactures specialised, critical and heavy precision-forged and machined components for several industries and applications including energy, defence, aerospace, railways, energy turbines, hydraulics, earthmoving, and high-end engineering.

With total installed capacity of 38,000 MTPA in three manufacturing units (Karnataka and Tamil Nadu), Vinir Engineering competes with listed entities like Azad Engineering, MTAR Technologies, and Balu Forge Industries. In the last fiscal 2024, it supplied components to over 60 customers in India and internationally.

On the financials front, the company has recorded profit at Rs 29 crore for the fiscal 2024, up 8.8 percent over previous fiscal. Revenue for the quarter ended March 2024 stood at Rs 229.5 crore, up 1.1 percent over the fiscal 2023. Further, profit for six months ended September 2024 stood at Rs 20.2 crore on revenue of Rs 103.4 crore.

Pantomath Capital Advisors is appointed as book running lead manager for handling the public issue.