Poojaa Precision IPO Surges Over 3X! Grey Market Premium Signals Massive Listing Gains for Engineering Firm

Poojaa Precision IPO Surges Over 3X! Grey Market Premium Signals Massive Listing Gains for Engineering Firm​

Poojaa Precision Engg. has generated significant investor excitement on the opening day of its SME initial public offering (IPO). According to BSE data, the issue received strong demand, having been subscribed over 3 times by 12:30 pm on July 28. This robust response confirms the high interest in the precision engineering firm's market debut.

The company is raising a total of Rs 159.83 crore through this book-built SME offering. The IPO includes a fresh issue of 53,10,000 shares and has been set with a price band ranging from Rs 285 to Rs 301 per share. Investors have until July 30 for the subscription process.

Investor Demand Drives High Subscription Metrics​

The IPO saw strong participation across investor categories as of the data cutoff. Retail investors led the charge, subscribing the issue by 5.57 times. Non-Institutional Investors (NIIs) also showed considerable interest, contributing a subscription rate of 2.77 times.

To maintain market access, the retail lot is set at 800 shares, requiring a minimum investment of Rs 2,40,800 based on the upper price band. For high-net-worth individuals (HNI), the minimum application requires three lots totaling Rs 3,61,200.

Market Signals Indicate Strong Listing Prospects​

Current market tracking platforms point towards a highly positive listing scenario for Poojaa Precision. The shares are trading at a grey market premium (GMP) of Rs 285 above the upper price band. Both Investorgain and IPO Watch have pegged the GMP at approximately 94 percent as of July 28.

Investors should note that these grey market premiums remain unofficial and speculative, as they do not guarantee actual listing gains or reflect the company's underlying financial fundamentals. The allotment for the issue is expected to be finalized on July 31, with listing tentatively scheduled for August 4 on the BSE SME platform.

IPO Proceeds Targeted at Major Capacity Expansion​

The capital infusion from this IPO will be channeled directly into scaling up operations and increasing manufacturing capacity. A key focus of the funding is the expansion of its Unit III manufacturing facility.

This expansion is expected to add a melting capacity of 15,000 metric tonnes per annum (MTPA). Additionally, it will boost component manufacturing and finishing capability by 6,600 MTPA. The company also plans to establish Unit IV for manufacturing magnesium-based precision components.

Financial Health and Operational Scope of Poojaa Precision​

Poojaa Precision Engg., established in August 1992, is a specialized precision engineering firm. It focuses on aluminium die-casting and precision-machined components essential for various industries including engines, drivetrains, EV powertrains, and electrical systems.

The company currently manufactures over 600 products utilizing integrated capabilities like gravity die casting (GDC), low-pressure die casting (LPDC), high-pressure die casting (HPDC), machining, and assembly services. For the financial year 2025-26, the firm reported a revenue from operations of Rs 293.86 crore and an after-tax profit of Rs 30.90 crore.