Gala Precision Engineering IPO Subscribed 46 times on Day 2

3 Sep 2024 , 04:06 PM

Gala Precision Engineering’s first public offering, which began on September 2 for public subscription, is receiving a robust reaction from investors. The Rs 167.93-crore IPO received a 46.55 times subscription until 3:58 pm on the second day of bidding on Tuesday, with offers for 10,35,09,868 shares versus 22,23,830 shares on offer.

Non-institutional investors subscribed to 113.82 times their allotted quota while Retail Individual Investors (RIIs) placed 41.34 times their allotted quota. The QIB category placed 4.79 times their subscription. The Employee reserved section was oversubscribed 104.35 times.

The IPO will be closed on September 4. The price band has been set at Rs 503 to Rs 529 per share.

Throughout the period, the company produced positive operating cash flows that expanded at a CAGR of 1.9%. The average operating cash flow was Rs 14.5 crore. Total financial obligations fell at a modest 0.7% CAGR. However, as profits increased, the debt-to-equity ratio dropped to 0.6x in FY24, down from 1.2x in FY21. Choice Broking reported that the pre-issue average RoIC and RoE were 13.5% and 14.1%, respectively, in FY21-24.

The IPO consists of a fresh issue of 25.58 lakh equity shares worth Rs 135.34 crore and an offer-for-sale (OFS) of 6.16 lakh equity shares valued at Rs 32.58 crore made by promoter group businesses and individual shareholders. This brings the total transaction size to Rs 168 crore at the upper end of the price band of Rs 529.

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