Bhubaneswar: Vinir Engineering Limited, an integrated engineering solutions company engaged in the manufacturing of specialised, critical and heavy, precision-forged and machined components for a wide range of industries and applications, has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
The IPO comprises an offer for sale of up to 53,300,000 equity shares of face value of ₹ 2 each. The offer for sale comprises up to 53,300,000 equity shares of face value ₹ 2 each by Nitesh Gupta (Promoter Selling Shareholder).
Vinir Engineering Limited is an integrated engineering solutions company engaged in the manufacturing of specialized, critical and heavy, precision-forged and machined components for a wide range of industries and applications, including energy, defence, aerospace, railways, energy turbines, hydraulics, earthmoving, high-end engineering , amongst others. The components play a vital role in various systems and applications, such as armored vehicles, armaments and ammunition, combat equipment, military hardware, upstream and downstream oil & gas systems, cryogenics systems, aircraft propulsion systems, power turbines, gas turbines, railway locomotives and braking systems, nuclear energy infrastructure equipment, heavy duty excavation machinery, spaceframes, hydraulic components, wind turbine generators & high-pressure boilers, amongst others. The company specializes in producing critical and heavy precision-forged and machined components using a wide range of metals, including alloy steel, titanium, hastelloy, carbon steels, stainless steels, duplex steels, special steels, inconel, monel, and aluminium, amongst others. The company is equipped to manufacture components with weight ranging from 20 kilograms to 6,000 kilograms using these processes and precision machining.
The company has a total installed capacity of 38,000 MTPA, distributed across three Manufacturing Units. Unit I is located at Bangalore in Karnataka while Unit II and Unit III are located in Hosur and Kalukondanapalli, both in Tamil Nadu. These units collectively span an area of 38,160 square meters. The company’s diverse customer base includes companies operating in sectors like energy, defence, aerospace, railways, energy turbines, hydraulics, earthmoving, high-end engineering amongst others , spread in India and foreign countries like United States, Mexico, Spain, Malaysia, United Arab Emirates, Saudi Arabia, Tunisia, Canada, amongst others. During the last 3 fiscals and six months ended September 30, 2024, they served over 150 unique customers, with an average of 60-70 customers per year/period. During the same period, they added 39 new customers.
The major demand driver of precision-forged and machined components is the economic growth and massive investment in infrastructure, oil gas and focus on aerospace & defence sectors across the globe. Global Non-Automotive Forging Market was valued at USD 33.16 Bn in 2023 which accounts for 35% of the overall forgings demand and is estimated to grow to USD 54.54 Bn by 2030 at a CAGR of 7.4% from 2023 to 2030 driven mainly by growth of demand from non-automotive end use sectors such as oil and gas, aerospace and defence, earthmoving, hydraulics and mining, railways and energy sector. Global Non-Automotive Precision Machined Forging Market was valued at USD 23.88 Bn in 2023 which accounts for 72% of the overall forgings demand and is estimated to grow to USD 37.11 Bn by 2030 at a CAGR of 6.5% from 2023 to 2030 driven mainly by growth of demand from non-automotive end use sectors such as energy (oil and gas), aerospace and defence, earthmoving, hydraulics and mining and railways. Indian Non-Automotive Precision Machined Forging Market was valued at INR 13,117 Crores in FY 2024 which accounts for 70% of the overall forgings demand and is estimated to grow to INR 20,814 by 2030 at a CAGR of 8% from FY 2024 to 2030 driven mainly by growth of demand from non-automotive end use sectors such as energy (oil and gas), energy turbines aerospace and defence, earthmoving, hydraulics and mining and railways. This augers well for players like Vinir Engineering Limited. Pantomath Capital Advisors Private Limited is the Book Running Lead Managers to the issue. KFIN Technologies Limited is the Registrar to the offer.
