Gala Precision Engineering IPO Opens Today

2 Sep 2024 , 01:15 PM

The IPO for Gala Precision Engineering opens today, Monday, September 2, and closes on Wednesday, September 4. The price range for the IPO is set between ₹503 to ₹529 per equity share, with each share having a face value of ₹10.

At the time of writing on September 2, 2024, at 12:00 pm, on the first day, the IPO had been subscribed 2.92 times, with retail investors subscribing 4.12 times and non-institutional investors (NII) 3.85 times.

Anchor investors have already invested ₹50.29 Crores in the company, which specializes in manufacturing precision components like disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS).

Investors can purchase shares in lots of 28 equity shares, and additional shares can be bought in multiples of 28.

In the public issue, 50% of the shares are reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors.

Gala Precision Engineering supplies its products to original equipment manufacturers (OEMs), Tier 1 suppliers, and channel partners across various industries, including general engineering, off-highway equipment, electrical, transportation, automotive, railways, and renewable energy sectors.

The company has a diverse global clientele of over 175 active customers, including major names in renewable energy like Vestas Wind Technology India Pvt Ltd, and industrial clients such as L&T Electrical & Automation Products. It also serves automotive clients like Schaeffler India Ltd. and railways customers like Faiveley Transport Rail Technologies India Pvt. Ltd.

The IPO includes a fresh issue of 2.56 million shares and an offer for sale (OFS) of 616,000 shares by existing promoters and shareholders, totaling ₹167.93 Crore at the upper price band.

The proceeds from the IPO will be used to establish a new facility in Tamil Nadu for manufacturing hex bolts and high-tensile fasteners, fund capital expenditure for equipment in Maharashtra, repay or prepay some of the company’s debts, and cover general corporate expenses.

Link Intime India Private Ltd is the registrar for the IPO, and PL Capital Markets Private Limited is the book-running lead manager.