Gala Precision Engineering's IPO oversubscribed 6.69 times on Day 1

2 Sep 2024 , 03:08 PM

Gala Precision Engineering’s initial public offering (IPO), which went up for bids earlier today, was oversubscribed inside the first hour. The issue has been subscribed to 6.69 times.

As of 3:03 p.m., the retail and non-institutional investor (NII) categories had high demand, with subscriptions at 8.49 and 10.57 times, respectively. The employee-allocated category was subscribed to 24.95 times, however the section reserved for qualified institutional buyers (QIBs) was subscribed 45%.

Some promoters and promoter group entities are participating in the OFS, selling 510,000 shares. In addition, other individual investors are partially lowering their stakes.

The proceeds from the new issuance will be used to build a new facility in Vallam-Vadagal to manufacture high-tensile fasteners and hex bolts, support capital expenditures for equipment, plant, and machinery in Wada, Palghar, repay debt, and cover general corporate expenses.

The issue is priced at Rs 503-529 per share, with investors able to bid for 28 shares per lot and multiples thereof.

Gala Precision Engineering manufactures speciality precision components for a variety of end-user applications. The company manufactures disc springs, strip springs, and wedge lock washers, which are crucial in the renewable energy, industrial, and transportation industries. Disc springs are employed in industrial applications that require mechanical force, as they provide strong spring strengths in a small space.

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