Allied Engineering Works IPO

About Allied Engineering Works

Allied Engineering, incorporated in 1998 and headquartered in Pune, is a precision engineering solutions provider serving automotive, industrial machinery, and allied sectors. The company manufactures high-precision components including machined parts, sub-assemblies, and complex engineered products through integrated facilities offering design, machining, heat treatment, and assembly. Its clientele includes leading domestic OEMs and global manufacturers across Europe, North America, and Asia. Allied Engineering has built strong export capabilities, with a significant portion of revenue derived from international markets, supported by long-term customer relationships and a track record of meeting stringent quality standards.

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Financials of Allied Engineering Works

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Utilisation of proceeds

Purpose	INR crores (%)
Capital expenditure	216.4 (54%)
Working capital requirements	120 (30%)
General corporate purposes	63.6 (16%)

Strengths

• Diversified manufacturing across precision engineering and automotive components
• Long-standing relationships with marquee domestic and global clients
• Integrated facilities enabling design, machining, and assembly in-house
• Strong export presence across Europe, North America, and Asia
• Experienced management team with deep industry domain expertise

Risks

• High client concentration in top customers impacting revenue stability
• Exposure to cyclical downturns in automotive and engineering sectors
• Significant dependence on imported raw materials and components
• Foreign exchange fluctuations may affect profitability and margins
• Capacity expansion requires timely execution and market demand growth