Veneer Engineering Limited filed DRHP papers with SEBI for IPO

Veneer Engineering Limited, an integrated engineering solutions company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO).

The IPO consists of an offer-for-sale (OFS) of up to 53.3 million equity shares with a face value of Rs. 2 is. OFS will be fully conducted by the promoter selling shareholder Nitesh Gupta.

Vinir Engineering specializes in manufacturing complex, heavy and precision-fabricated components for various industries including energy, defence, aerospace, railway and high-end engineering. Its products play an integral role in systems such as armored vehicles, oil and gas systems, combat equipment, aircraft propulsion, power turbines, railway locomotives and nuclear power infrastructure.

The company’s expertise covers a wide range of metals such as alloy steel, titanium, Hastelloy, stainless steels, duplex steels, Inconel and aluminium. It is equipped to manufacture components from 20 kg to 6,000 kg, with a total installed capacity of 38,000 metric tonnes per annum (MTPA), distributed across three manufacturing units located at Bengaluru, Hosur and Kalukondanapalli.

Veneer Engineering has a diverse customer base spanning over 150 unique customers across sectors such as energy, aerospace and defense in India and abroad. Its international footprint includes markets such as the United States, Mexico, Spain, Malaysia, Saudi Arabia and Canada. Between FY2022 and September 2024, Vinir Engineering added 39 new clients, maintaining an annual average of 60-70 active clients.

Global and Indian markets for precision-fabricated and machined components are on a growth trajectory, presenting a favorable outlook for the company. The global non-automotive forging market was valued at $33.16 billion in 2023 and is projected to grow at a CAGR of 7.4% to reach $54.54 billion by 2030.

Meanwhile, in FY 2024 Rs. 13,117 crore Indian non-automotive precision machined forging market to grow at a CAGR of 8% by 2030 to Rs. 20,814 crore is expected to reach. These growth trends are driven by increasing investments in infrastructure, oil. and gas, and the aerospace and defense sectors, positioning veneer engineering to capitalize on emerging opportunities.

Pentomuth Capital Advisors Pvt Ltd is the book running lead manager for the issue, while KFIN Technologies Ltd will act as registrar.

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