Vinir Engineering IPO

Vinir Engineering Limited IPO Strengths

• Integrated Capabilities for Precision Engineering

Vinir Engineering manages the entire value chain, from raw material sourcing to advanced testing. With in-house die design, forging, machining, and heat treatment, it ensures quality, efficiency, and timely delivery. NABL-accredited labs and CMMs guarantee compliance with industry standards, meeting diverse customer specifications across various industries.

• Comprehensive Manufacturing Capabilities

Vinir Engineering Limited oversees the entire value chain, from raw material sourcing to advanced testing. With in-house die design, forging, machining, and heat treatment, the company ensures quality, efficiency, and timely delivery. NABL-accredited labs and CMMs ensure compliance with industry standards, meeting diverse customer specifications across various industries.

• Barriers to Entry and Customer Retention in Vinir Engineering Limited IPO

Vinir Engineering Limited operates in a high-value precision-forged components sector with stringent error tolerances. Extensive testing and trust-based relationships create high entry barriers. Customers face exit challenges due to customization, high switching costs, and supply chain dependencies, making transitions costly and complex, reinforcing long-term industry commitments.

• Automation-Driven Operations in Vinir Engineering Limited IPO

Vinir Engineering Limited leverages automation across operations, from raw material management to sales and record-keeping. Custom-built IT systems enhance efficiency, reduce errors, and streamline decision-making. Integrated tools optimize inventory, production tracking, and compliance, ensuring seamless coordination, improved resource utilization, and real-time insights for operational excellence and strategic growth.

• De-Risked Business Model of Vinir Engineering Limited IPO

Vinir Engineering Limited serves a broad customer base across multiple industries, reducing reliance on any single sector. Supplying over 150 customers across defence, aerospace, energy, and railways mitigates market fluctuations. With three independent manufacturing units in two states, the company ensures operational stability, resilience, and risk diversification.

• Strong Customer and Supplier Relationships Driving Business Stability

Vinir Engineering Limited has built long-standing relationships with customers and suppliers over three decades, ensuring business continuity and repeat orders. With over 75% of customers returning annually, the company maintains a stable revenue stream. Established supplier partnerships enhance procurement efficiency, ensuring quality consistency and cost benefits, further strengthening operational resilience.

• Strong Financial Performance and Sustainable Growth

Vinir Engineering Limited has achieved consistent financial growth through internal accruals, funding expansions without external debt. Over the past five years, investments in machinery and a buyback of 30.58 million equity shares worth ₹260 million highlight financial strength. With a 42.66% CAGR in profit after tax and a 22.30% CAGR in revenue, the company maintains strong margins and returns, supported by low financial leverage and stable credit ratings.

• Experienced Leadership and Skilled Management

Vinir Engineering Limited benefits from seasoned leadership, with promoters Naresh Chandra Gupta, Nitesh Gupta, and Ritesh Gupta having 106+ years of combined experience, supported by an expert managerial and senior management team.

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More About Vinir Engineering Limited

Vinir Engineering Limited is a leading provider of specialised, precision-forged, and machined components. These components are essential across industries such as energy, defence, aerospace, railways, earthmoving, and high-end engineering.

Key Applications

The company’s products are integral to various critical systems, including:

• Defence & Aerospace: Armoured vehicles, military hardware, aircraft propulsion systems.

• Energy Sector: Power turbines, gas turbines, high-pressure boilers, wind turbine generators.

• Industrial & Transport: Railway locomotives, hydraulic components, nuclear energy equipment.

Manufacturing Capabilities

• Production Capacity: 38,000 MTPA across three independent units in Karnataka and Tamil Nadu.

• Manufacturing Techniques: Closed Die Forging, Open Die Forging, Ring Rolling, Radial Forging, In-House Heat Treatment.

• Material Expertise: Alloy steel, titanium, stainless steel, duplex steel, Inconel, Monel, and more.

• Weight Range: Components from 20 kg to 6,000 kg.

Certifications & Quality Assurance

Vinir Engineering Limited is accredited with multiple ISO certifications, including:

• ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 for quality and safety.

• American Petroleum Institute & American Bureau of Shipping certifications for aerospace and marine components.

• NABL Certification for in-house testing laboratories.

Backward Integration & Competitive Edge

• In-House Capabilities: Raw material sourcing, testing, design, and precision machining.

• Advanced Engineering: CNC-machined 3D die models for quality assurance.

• 5,000+ Die Designs: Reusable inventory optimising cost and efficiency.

Global Market & Customer Base

• 60+ Customers: Spread across India, the US, Mexico, Spain, UAE, Canada, and more.

• Repeat Orders: A significant share of revenue comes from long-term partnerships.

• Reliable Supplier Network: 12+ suppliers, some partnerships exceeding 10 years.

Industry Outlook

Industry Growth & Future Potential

• Global Market Growth: The non-automotive forging sector is projected to grow from USD 33.16 billion (2023) to USD 54.54 billion (2030).

• Indian Market Expansion: Expected growth from INR 13,117 crore (2024) to INR 20,814 crore (2030).

• Key Drivers: Infrastructure investments, rising demand in defence and aerospace, and advancements in precision engineering.

How Will Vinir Engineering Limited Benefit

• Increased Demand in Defence & Aerospace: With rising investments in defence and aerospace, Vinir Engineering Limited is positioned to supply critical forged components. Its expertise in precision engineering and global certifications ensures a competitive edge in securing high-value contracts.

• Expansion in Infrastructure & Energy Sectors: The growing need for advanced engineering solutions in power generation, railways, and industrial applications will drive demand. Vinir’s diverse product portfolio and in-house capabilities enable it to cater to these expanding markets efficiently.

• Enhanced Revenue from Global Markets: As the global non-automotive forging industry grows, Vinir’s existing exports to the US, Mexico, and Europe will gain traction. Its long-term customer relationships and quality assurance will support increased international sales and revenue.

• Competitive Advantage Through Backward Integration:With in-house die design, machining, and material sourcing, Vinir Engineering Limited can optimise production costs and maintain stringent quality standards. This ensures better profit margins and sustained business growth in an expanding market.

• Technological Advancements & Innovation:Advancements in precision engineering will drive demand for high-performance materials and complex components. Vinir’sexpertise in alloy steel, titanium, and Inconel will position it as a preferred supplier for emerging industry requirements.

Vinir Engineering Limited IPO Overview

Vinir Engineering Ltd. has filed its preliminary draft papers with SEBI, seeking approval for an IPO. As per the DRHP, the IPO is a complete offer-for-sale (OFS) of up to 53.3 million equity shares by promoter Nitesh Gupta, meaning the company will not receive any funds for development. The proceeds, after covering IPO expenses, will go entirely to the promoter. Each share will have a face value of ₹2. Pantomath Capital Advisors Private Limited is the Book Running Lead Manager (BRLM), while KFIN Technologies Limited is the Registrar.

Vinir Engineering Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	Fresh Issue: NA Offer for Sale (OFS): 5.33 crore shares
IPO Dates	TBA
Price Bands	TBA
Lot Size	TBA
Face Value	₹2 per share
Listing Exchange	BSE, NSE
Shareholding pre-issue	TBA
Shareholding post -issue	TBA

Vinir Engineering IPO Important Dates

IPO Activity	Date
IPO Open Date	TBA
IPO Close Date	TBA
Basis of Allotment Date	TBA
Refunds Initiation	TBA
Credit of Shares to Demat	TBA
IPO Listing Date	TBA

Vinir Engineering IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	TBA	TBA	TBA
Retail (Max)	TBA	TBA	TBA
S-HNI (Min)	TBA	TBA	TBA
S-HNI (Max)	TBA	TBA	TBA
B-HNI (Min)	TBA	TBA	TBA

Vinir Engineering Limited IPO Valuation Overview

KPI	Value
Earnings Per Share (EPS)	1.26
Price/Earnings (P/E) Ratio	TBD
Return on Net Worth (RoNW)	26.88%
Net Asset Value (NAV)	6.06
Return on Equity	26.68%
Return on Capital Employed (ROCE)	35.21%
EBITDA Margin	20.24%
PAT Margin	12.31%
Debt to Equity Ratio	0.13

Vinir Engineering IPO Peer Group Comparison

Name of the Company	Face Value (₹)	Total Income (₹ in million)	Basic EPS (₹)	NAV (₹)	P/E Ratio	RoNW %
Vinir Engineering Limited	2.00	2,355.26	1.26	5.11	[●]	26.68
Peer Group
Azad Engineering Limited	2.00	3,727.64	11.20	109.12	148.91	9.08
MTAR Technologies Limited	10.00	5,865.59	18.24	219.88	91.88	8.30
Balu Forge Industries Limited	10.00	5,702.71	9.80	53.90	72.18	16.94

Key Insights

• Face Value: Vinir Engineering Limited and Azad Engineering Limited have a face value of ₹2 per share, while MTAR Technologies Limited and Balu Forge Industries Limited have a higher face value of ₹10.

• Total Income: Vinir Engineering Limited has ₹2,355.26 million, significantly lower than its peers. MTAR Technologies Limited leads with ₹5,865.59 million, followed by Balu Forge Industries Limited at ₹5,702.71 million and Azad Engineering Limited at ₹3,727.64 million.

• Basic EPS: Vinir Engineering Limited has a low EPS of ₹1.26, whereas MTAR Technologies Limited has the highest at ₹18.24. Azad Engineering Limited and Balu Forge Industries Limited report ₹11.20 and ₹9.80, respectively, showing better earnings distribution.

• NAV: Vinir Engineering Limited has ₹5.11, while Azad Engineering Limited stands at ₹109.12. MTAR Technologies Limited has the highest NAV at ₹219.88, and Balu Forge Industries Limited follows at ₹53.90.

• P/E Ratio: While Vinir Engineering Limited’s P/E ratio is unavailable, Azad Engineering Limited has a high P/E of 148.91. MTAR Technologies Limited and Balu Forge Industries Limited have lower ratios at 91.88 and 72.18, respectively.

• RoNW: Vinir Engineering Limited has the highest RoNW at 26.68%, significantly outperforming peers. Balu Forge Industries Limited follows at 16.94%, while MTAR Technologies Limited and Azad Engineering Limited report 8.30% and 9.08%, respectively.

Objectives of the IPO Proceeds

The Promoter Selling Shareholder will be entitled to the entire proceeds of the Offer after deducting his portion of the Offer expenses and relevant taxes thereon. The Company will not receive any proceeds from the Offer

Vinir Engineering Limited Financials (in million)

Particulars	30 Sept 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	1624.98	1483.02	1333.55	1034.74
Revenue	1033.76	2295.27	2269.57	1534.59
Profit After Tax	202.32	289.95	266.42	142.46
Reserves and Surplus	1146.75	945.10	884.19	619.64
Total Borrowings	15.97	136.74	82.43	64.42
Total Liabilities	336.48	396.17	277.02	242.76

Key Strategies for Vinir Engineering Limited

• Expanding Product Portfolio:

The company aims to enhance its product offerings by manufacturing larger, heavier precision-engineered components, catering to industries such as energy, defence, aerospace, and railways. This strategy strengthens market presence and aligns with evolving customer demands in new and existing applications.

• Enhancing Manufacturing Capacities

The company continuously invests in capital expenditure to expand manufacturing capabilities. By acquiring advanced machinery and equipment, it strengthens domestic and global market positioning, increases production capacity, introduces new products, and improves customer service while scaling operations for future growth.

• Exploring Inorganic Growth Opportunities

Through strategic acquisitions, the company seeks to expand into new markets and industries. Evaluating opportunities based on operational scale, technology, and financial viability, it aims to create synergies, enhance capabilities, and mitigate business risks while increasing its market share and revenue streams.

• Leveraging a Well-Positioned Business Model

The company capitalizes on growing demand for precision-engineered components across diverse industries. Diversification reduces dependency on specific sectors, while investments in infrastructure, certifications, and emerging applications position it for sustainable growth and technological advancement in global and domestic markets.

• Expansion of Export Revenue

Vinir Engineering Limited aims to boost export revenue by appointing senior personnel, strengthening global partnerships, participating in trade exhibitions, intensifying marketing efforts, and obtaining industry-specific certifications to ensure compliance with international quality and regulatory standards.

• Optimisation of Operational Efficiency

Vinir Engineering Limited focuses on improving efficiency by optimising costs, enhancing automation, negotiating better supplier terms, and streamlining inventory management to minimise obsolescence risks while ensuring stringent quality assurance and operational excellence across its supply chain and production processes.