IPO Details
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Schedule of Vinir Engineering Ltd IPO
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Allotment of bids
Refund Initiation
Listing on exchange
About Vinir Engineering Limited IPO
The IPO of Vinir Engineering Limited is a 100% Offer for Sale (OFS), comprising up to 53,300,000 equity shares of face value ₹2 each, with the total offer size to be determined based on the final offer price. Post listing, the equity shares are proposed to be listed on the National Stock Exchange of India (NSE) and BSE Limited (BSE).
Objectives of Vinir Engineering Limited IPO
Since it is a 100% OFS, the company will not receive any proceeds from the offer. All proceeds will go to the Promoter Selling Shareholder after deducting the offer-related expenses and relevant taxes.
Vinir Engineering Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA (To Be Announced) |
Fresh Issue | Nil |
Offer for Sale | Up to 53,300,000 equity shares |
EPS (in ₹) for FY24 | 1.26 |
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Investors (NIIs) | Not less than 15% of the net offer |
Retail-individual Investors (RIIs) | Not less than 35% of the net offer |
Industry Outlook
Vinir Engineering Limited operates in the growing non-automotive precision-forged and machined components market, driven by demand from sectors like energy, aerospace, defence and railways, among others. The Indian forging industry, the second largest in the world and valued at ₹43,636 crore in FY24, is projected to grow at a CAGR of 8.4% till FY30. Government initiatives like Make in India and rising localisation in defence and energy sectors position the company to benefit from favourable industry growth trends.
Company Information
Vinir Engineering Limited is an integrated engineering solutions company specialising in the manufacture of precision-forged and machined components for diverse industries, including energy, aerospace, defence, railways, and high-end engineering. Established in 1983, the company operates three manufacturing units with an installed capacity of 38,000 MTPA. With a focus on quality, automation, and sustainability, Vinir serves over 150 unique customers globally, leveraging strong customer relationships and catering to critical, high-value applications.
Vinir Engineering Ltd Strengths
Integrated manufacturing capabilities
Vinir Engineering offers end-to-end engineering solutions, including sourcing raw materials, forging, machining and delivering finished components. This integrated approach ensures high-quality, cost-efficient production for critical applications across industries like energy, aerospace, and defence. Its automation-driven processes enhance productivity and operational efficiency, enabling the company to cater to diverse and complex customer requirements.
Strong customer relationships and diversified applications
The company has built long-term relationships with over 150 customers globally, ensuring a high level of repeat customers while also boasting of a wide customer base. Vinir’s products also serve critical applications in energy, defence, aerospace and railways, ensuring a diversified revenue stream. This reduces dependency on any single sector while benefiting from growth in multiple high-demand industries.
Sustainable growth and financial strength
With a focus on automation, sustainability initiatives and operational excellence, Vinir Engineering has achieved strong financial performance, including an EBITDA margin of 20.24% in FY24. The company maintains a low debt-equity ratio and generates healthy cash flows, showcasing its ability to scale.
Risks of Vinir Engineering Limited IPO
- Customer concentration risk
A significant portion of Vinir Engineering’s revenue comes from its top 5 customers, contributing 51.72% in the six months ending September 30, 2024. The loss of any major customer could materially affect revenues and profitability. While the company serves over 150 customers, its reliance on key accounts increases its vulnerability to changes in customer demand or business relationships.
- Raw material price volatility
The company’s primary raw material is steel, which accounts for a substantial portion of its production costs (54.30% of revenue in the six months ending September 30, 2024). Fluctuations in steel prices or supply chain disruptions could adversely impact profitability. Additionally, Vinir’s limited ability to pass on cost increases to customers may reduce margins in a highly competitive market.
- Volatility in Fuel availability
They have power and fuel requirements and any disruption to power or fuel sources could increase their production costs and adversely affect their business, financial condition, cash flows and results of operations.
All Financial Information about Vinir Engineering Ltd IPO
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Name of Company | Total income (₹ in crores) | EPS (Basic) ₹ | NAV (₹ per Share) | P/E |
|---|---|---|---|---|
Vinir Engineering Limited | 235.52 | 1.26 | 5.11 | - |
Azad Engineering Limited | 372.76 | 11.20 | 109.12 | 148.91 |
MTAR Technologies Limited | 586.55 | 18.24 | 219.88 | 91.88 |
Balu Forge Industries Limited | 570.27 | 9.80 | 53.90 | 72.18 |
Anchor Investor Bidding Date: TBA
Registrar: KFin Technologies Limited
Book Running Lead Managers: Pantomath Capital Advisors Private Limited
Business Model
The company is an integrated engineering solutions company that manufactures specialised, critical and heavy precision-forged and machined components for various industries including energy, defence, aerospace, railways and hydraulics. Since its incorporation in 1983, the company has expanded its business and scale of operations, delivering a variety of products and establishing a position in winding and conductivity products.
Company Growth Trajectory
The company has demonstrated consistent EBITDA growth over the past three years. In Fiscal 2022, the company reported an EBITDA of ₹20.15 crores with an EBITDA margin of 13.13%. For Fiscal 2023, EBITDA increased to ₹39.00 crores, representing a margin of 17.18%. This shows significant growth compared to the previous year. In Fiscal 2024, EBITDA further improved to ₹46.45 crores with a margin of 20.24%, continuing the upward trend.
Vinir Engineering Limited Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 235.52 | 228.93 | 155.04 |
Profit Before Tax (in ₹ crores) | 46.88 | 35.99 | 19.03 |
Profit After Tax (in ₹ crores) | 28.99 | 26.64 | 14.24 |
EPS (Basic) | 1.26 | 1.03 | 0.55 |
Vinir Engineering Limited Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 46.88 | 35.99 | 19.03 |
Net Cash from (used in) Operating Activities (in ₹ crores) | 19.65 | 23.909 | 17.99 |
Net Cash from (used in) Investing Activities (in ₹ crores) | 1.46 | (33.78) | (11.67) |
Net Cash from (used in) Financing Activities (in ₹ crores) | (20.98) | 1.57 | 5.59 |
Net decrease/increase in cash and cash equivalents (in ₹ crores) | 0.13 | (8.31) | 11.91 |
Cash and cash equivalent at the end of the year | 4.49 | 4.36 | 12.67 |
How to Check Allotment Status of Vinir Engineering Limited IPO?
1. Visit the Registrar's Website
To check the IPO allotment status for Vinir Engineering Limited IPO, visit the official website of KFin Technologies Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.
On the BSE IPO page, follow these steps
- Select 'Equity' from the dropdown menu
- Choose 'Vinir Engineering Limited' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search'
Your Vinir Engineering Ltd IPO allotment status will be displayed.
3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Vinir Engineering IPO allotment status. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit'. Your Vinir Engineering IPO bid and allotment details will be displayed.
How to Apply for Vinir Engineering Limited IPO?
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Vinir Engineering Ltd IPO FAQs
What is the Vinir Engineering Ltd IPO?
Vinir Engineering Limited is offering an IPO of up to 53,300,000 equity shares with a face value of ₹2 each through an Offer for Sale, with the company being a family-owned, 40-year-old, zero-debt organisation engaged in forge-based and machine-based engineering solutions.
Is Vinir Engineering IPO coming?
Yes, Vinir Engineering Ltd is expected to come up with its IPO soon.
Who is the director of Vinir Engineering?
Naresh Chandra Gupta is the chairman and non-executive director of Vinir Engineering Ltd, with Nitesh Gupta being the managing director.
What is the lot size of shares of Vinir Engineering Ltd IPO?
The company hasn’t given any information on the lot size yet.
From where can I read more about the IPO of Vinir Engineering Ltd?
You may read more about Vinir Engineering Ltd and its IPO from the company’s draft red herring prospectus (DRHP) here.
