Veneer Engineering files DRHP with SEBI for IPO of 7.10 crore fresh shares
Forging and machining firm Veneer Engineering plans a fully fresh issue, to be listed on BSE and NSE; price and dates are yet to be announced.
Engineering company Veneer Engineering Limited has taken a step towards an initial public offering (IPO). It has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The IPO will consist entirely of fresh shares, and the company's shares are proposed to be listed on both the BSE and the NSE.
The proposed IPO will issue 7.10 crore equity shares of face value Rs 2 each. Since this is entirely a fresh issue, the money raised will be used for the company's business growth. The final price, issue date and other key details have not yet been announced.
Veneer Engineering is an integrated engineering company that makes specialised and heavy precision forging and machining components. It supplies components to the energy, defence, aerospace, railway, turbine, hydraulics, earthmoving and high-end engineering sectors.
The company has also said how the IPO proceeds will be used. Of the total, Rs 149.85 crore is proposed for buying advanced forging and machining plants and machinery. Rs 35 crore will go towards working capital. Part of the funds is planned for inorganic growth through unidentified acquisitions and for general corporate purposes.
GYR Capital Advisors Private Limited is the book running lead manager for the issue, and KFin Technologies Limited is the registrar.
On allocation, not more than 50% of the shares will be reserved for qualified institutional buyers, of which up to 60% may be offered to anchor investors. At least 15% is reserved for non-institutional investors and at least 35% for retail investors.
On financial performance, revenue from operations in the financial year 2026 was Rs 2,048.24 million, up 7.82% from Rs 1,899.61 million in 2025. EBITDA in the same period was Rs 394.45 million, and the EBITDA margin fell from 20.62% to 19.02%. Net profit was Rs 243.67 million, while the profit margin declined from 13.07% to 11.91%.
Veneer Engineering has three manufacturing facilities, at Bengaluru, Hosur and Kalikondapalli. At the end of March 2026, its annual forging capacity was 30,000 metric tonnes and its machining capacity was 8,000 metric tonnes. The company uses four main forging technologies: closed die, open die, ring rolling and radial forging.
The defence and aerospace segment's share of revenue rose from 12.02% in the financial year 2024 to 26.59% in 2026. The company's business spans the oil and gas, defence, aerospace, railway, nuclear power, mining and marine sectors. In the financial year 2026, existing customers accounted for 89.86% of its revenue.
The company has more than 40 years of experience. It has designed more than 5,000 dies and built a product master database of more than 10,000 different parts. It holds certifications such as API, AS 9100D, ABS, IRIS and PED, along with an NABL-accredited testing laboratory.
The final details, including the price and the dates on which the issue opens and closes, will emerge at a later stage. Before investing in the IPO, it will be important to study the risk factors, financial position and other relevant information in the DRHP in detail.
