Gala Precision Engineering IPO: Firm mobilises ₹50 crore from anchor investors; Subscription window opens on Sept 2

  • Gala Precision Engineering IPO: The precision components manufacturer's initial public offering is all set to hit the D-Street for its three-day subscription on Monday, September 2

Nikita Prasad
Published30 Aug 2024, 10:27 PM IST
Gala Precision Engineering IPO: Subscription window opens on September 2, 2024
Gala Precision Engineering IPO: Subscription window opens on September 2, 2024(https://www.galagroup.com/)

Gala Precision Engineering IPO: Gala Precision Engineering Limited has raised 50.29 crore from anchor investors ahead of its IPO subscription opening for bidding. The precision components manufacturer's initial public offering (IPO) is all set to hit the D-Street for its three-day subscription on Monday, September 2, and will close on Wednesday, September 4.

The company informed the bourses that it allocated 9,50,586 equity shares at Rs. 529 per share on Friday, August 30, to anchor investors. Foreign and domestic Institutions that participated in the anchor round were NAV Capital Emerging Star Fund, Negen Undiscovered Value Fund, Cognizant Capital Dynamic Opportunities Fund, India Emerging Giants Fund, Finavenue Capital Trust, Chhatisgarh Investments, Gagandeep Credit, Resonance Opportunities Fund.

Also Read: Upcoming IPO: Gala Precision Engineering IPO to open for subscription on September 2; Price band set at 503-529 apiece

Gala Precision Engineering IPO Details

The IPO consists of a fresh issue of up to 25,58,416 equity shares and an offer for sale (OFS) of up to 6,16,000 equity shares by the promoter group and individual selling shareholders. The price band for the offer has been determined at 503 – 529 per equity share.

The IPO will fetch 167.93 crore at the upper end of the price band. Investors can bid for at least 28 equity shares and in multiples of 28 equity shares thereafter. The floor price is 50.3 times the face value of the equity shares, and the cap price is 52.9 times the face value of the equity shares.

Gala Precision Engineering IPO has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for non-institutional Institutional Investors (NII), and not less than 35 per cent of the offer is reserved for retail investors.

Also Read: ECOS Mobility IPO subscribed over 64x on last day of bidding, QIBs portion booked highest; Latest GMP here

Tentatively, Gala Precision Engineering's IPO basis of allotment of shares will be finalised on Thursday, September 5. The company will initiate refunds on Friday, September 6, and the shares will be credited to the demat account of allottees on the same day following the refund. Gala Precision Engineering's share price will likely be listed on BSE and NSE on Monday, September 9.

The company intends to use the net proceeds to finance the following goals: establishing a new facility in Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu, to manufacture hex bolts and high-tensile fasteners; financing the capital expenditure needed to buy machinery, plant, and equipment in Wada, Palghar, Maharashtra; repaying or prepaying some of the company's borrowed funds, in full or in part; and general corporate purposes.

The registrar for the Gala Precision Engineering IPO is Link Intime India Private Ltd, and the book-running lead manager is Pl Capital Markets Private Limited.

Also Read: Gala Precision Engineering files draft papers with SEBI to raise funds via IPO

Gala Precision Engineering Company Details

Gala Precision Engineering manufactures precision components such as disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). The company supplies these products to original equipment manufacturers (OEMs).

The company's products are used in sectors such as electrical, off-highway equipment, infrastructure, and general engineering, as well as in mobility segments such as automotive and railway.

The company has supplied its technical springs and high-tensile fasteners to customers in several countries, including Germany, Denmark, China, Italy, Brazil, the USA, Sweden, and Switzerland, making it a crucial link in the global supply chain for OEMs. The company's business primarily comprises two divisions:

(i) Springs Technology Division manufactures DSS, including Wedge Lock Washers (WLW) and CSS,

(ii) SFS produces anchor bolts, studs, and nuts.

The company has two manufacturing facilities in Wada District, Palghar, Maharashtra, with capabilities to design, develop, and manufacture a diverse product portfolio. A new manufacturing facility is being set up in Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu, focusing on developing high-tensile fasteners to expand the product portfolio with new products like bolts.

Also Read: Warren Buffet’s 94th birthday: Apple to American Express—10 stocks that top the ’Oracle of Omaha’s’ portfolio

Harsha Engineers International Ltd (with a P/E of 44.33), SKF India Ltd (with a P/E of 48.50), Sundram Fasteners Ltd (with a P/E of 54.49), Rolex Rings Ltd (with a P/E of 40.83), Sterling Tools Ltd (with a P/E of 24.70), and Ratnaveer Precision Engineering Ltd (with a P/E of 24.69) are among the peers included on the list.

Between March 31, 2024, and March 31, 2023, Gala Precision Engineering profit after tax decreased by eight per cent while its sales climbed by 22 per cent.

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:30 Aug 2024, 10:27 PM IST
Business NewsMarketsIPOGala Precision Engineering IPO: Firm mobilises ₹50 crore from anchor investors; Subscription window opens on Sept 2

Most Active Stocks

Bharat Electronics share price

288.95
02:24 PM | 30 OCT 2024
5.35 (1.89%)

Tata Motors share price

843.45
02:24 PM | 30 OCT 2024
0.4 (0.05%)

Tata Steel share price

149.55
02:24 PM | 30 OCT 2024
-0.5 (-0.33%)

Power Grid Corporation Of India share price

319.70
02:24 PM | 30 OCT 2024
-0.95 (-0.3%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

UTI Asset Management Company share price

1,295.15
02:17 PM | 30 OCT 2024
92.95 (7.73%)

Coforge share price

7,795.40
02:17 PM | 30 OCT 2024
39.9 (0.51%)

City Union Bank share price

175.75
02:18 PM | 30 OCT 2024
-1.2 (-0.68%)

Deepak Fertilisers & Petrochemicals Corporation share price

1,211.45
02:18 PM | 30 OCT 2024
-22.2 (-1.8%)
More from 52 Week High

Honeywell Automation India share price

45,155.00
02:17 PM | 30 OCT 2024
-3834.05 (-7.83%)

Multi Commodity Exchange Of India share price

6,420.00
02:18 PM | 30 OCT 2024
-414.25 (-6.06%)

Hitachi Energy India share price

13,450.10
02:18 PM | 30 OCT 2024
-834.55 (-5.84%)

Chennai Petroleum Corporation share price

649.15
02:18 PM | 30 OCT 2024
-32.05 (-4.7%)
More from Top Losers

Poonawalla Fincorp share price

370.75
02:17 PM | 30 OCT 2024
31.35 (9.24%)

Indian Railway Finance Corporation share price

156.30
02:18 PM | 30 OCT 2024
12.8 (8.92%)

Redington India share price

181.35
02:18 PM | 30 OCT 2024
14.6 (8.76%)

Rail Vikas Nigam share price

475.00
02:18 PM | 30 OCT 2024
36.15 (8.24%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    80,475.00670.00
    Chennai
    80,481.00670.00
    Delhi
    80,633.00670.00
    Kolkata
    80,485.00670.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00

    Popular in Markets

      HomeMarketsPremiumInstant LoanMint Shorts