Gala Precision Engineering IPO will open for subscription from 02 September 2024. The company aims for an issue size of ₹167.93 Cr through this IPO.
Company Overview
| Full name | Gala Precision Engineering Limited |
| Sector | Capital Goods |
| Industry | Engineering – Industrial Equipments |
| Company Website | https://www.galagroup.com/ |
About Company
Gala Precision Engineering is a leading manufacturer of precision components, specializing in technical springs such as disc and strip springs (DSS), including wedge lock washers, as well as coil and spiral springs (CSS), and special fastening solutions (SFS). Gala’s products are used across various sectors, including renewable energy like wind turbines and hydropower plants, industrial sectors such as electrical, off-highway equipment, infrastructure, and general engineering, as well as mobility segments like automotive and railways.
The company supplies its technical springs and high-tensile fasteners to customers in countries such as Germany, Denmark, China, Italy, Brazil, the USA, Sweden, and Switzerland. Its customer base includes global OEMs, Tier 1 suppliers, and channel partners across various sectors, including John Deere India, Faiveley Transport Rail Technologies India (a Wabtec Company), Brembo Brake India, BUFAB India Fasteners, L&T Electrical & Automation Products, Turbo Energy, and more. As of 31 March 2024, Gala Precision has an annual production capacity of 246.46 million units of springs and washers, along with 0.42 million fasteners for customers in the renewable energy sector. As of 30 June 2024, the company employs 294 permanent employees and 390 contract employees.
The Objectives of the Issue
- Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts;
- Funding capital expenditure requirements towards purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra;
- Repayment/ prepayment, in full or part, of certain borrowings availed by the company; and
- General corporate purposes.
Gala Precision Engineering IPO Timetable
| IPO Opening date | 02 September 2024 |
| IPO Closing | 04 September 2024 |
| Basis of Allotment | 05 September 2024 |
| Initiation Refund | 06 September 2024 |
| Credit to Demat Account | 06 September 2024 |
| Listing Date | 09 September 2024 |
Gala Precision Engineering IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹167.93 Cr – 3,174,416 shares |
| Fresh Issue | ₹135.34 Cr – 2,558,416 shares |
| Offer for sale | ₹32.59 Cr – 616,000 shares |
| Face value | ₹10 per share |
| Price Band | ₹503 to ₹529 per share |
| Lot size | 28 Shares |
| Shareholding pre-issue | 10,111,584 |
| Shareholding post-issue | 12,670,000 |
| Listing Exchange | BSE & NSE |
Gala Precision Engineering IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 28 | ₹14,812 |
| Retail (Max) | 13 | 364 | ₹192,556 |
| S-HNI (Min) | 14 | 392 | ₹207,368 |
| S-HNI (Max) | 67 | 1,876 | ₹992,404 |
| B-HNI (Min) | 68 | 1,904 | ₹1,007,216 |
Gala Precision Engineering Offer Documents
Gala Precision Engineering IPO Reservation Details
Gala Precision Engineering IPO offers 31,74,416 shares. 6,33,724 (19.96%) to QIB, 4,75,293 (14.97%) to NII, 11,09,017 (34.94%) to RII, 5,796 (0.18%) to employees and 9,50,586 (29.95%) to Anchor investors.
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 9,50,586 (29.95%) | NA |
| QIB Shares Offered | 6,33,724 (19.96%) | NA |
| NII (HNI) Shares Offered | 4,75,293 (14.97%) | |
| bNII > ₹10L | 3,16,862 (9.98%) | 808 |
| sNII < ₹10L | 1,58,431 (4.99%) | 404 |
| Retail Shares Offered | 11,09,017 (34.94%) | 39,607 |
| Employee Shares Offered | 5,796 (0.18%) | NA |
| Total Shares Offered | 31,74,416 (100%) |
Gala Precision Engineering Financial Performance
| FY 2021 | FY 2022 | FY 2023 | FY 2024 | |
| Revenue | 105.37 | 145.28 | 165.47 | 202.55 |
| Expenses | 104.72 | 136.74 | 149.38 | 176.79 |
| Net income | 2.36 | 6.63 | 14.45 | 24.30 |
| Margin (%) | 2.24 | 4.48 | 8.65 | 11.89 |
Gala Precision Engineering Valuations & Margins
| FY 2022 | FY 2023 | FY 2024 (Pre Issue) | FY 2024 (Post-Issue)* | |
| EPS | 6.44 | 14.06 | 24.02 | 19.45 |
| PE Ratio | – | – | – | 25.86 – 27.20 |
* Calculated on the basis of annualized Profits After Tax for FY 2024
| FY 2022 | FY 2023 | FY 2024 | |
| RONW (%) | 11.18 | 17.28 | 23.27 |
| NAV | 58.66 | 82.85 | 103.30 |
| ROCE (%) | 13.85 | 16.07 | 21.15 |
| EBITDA (%) | 15.11 | 17.32 | 19.86 |
| Debt/Equity | 0.05 | 0.69 | 0.51 |
Company Promoters
- Kirit Vishanji Gala
- Smeet Kirit Gala
Promoter Holding
| Pre Issue Share Holding | 74.56% |
| Post Issue Share Holding |
Gala Precision Engineering Offer GMP Update
| Date | Day-wise IPO GMP | Kostak | Subject to Sauda |
| 2 September 2024 | 240 | – | 5,100 |
| 31 August 2024 | 225 | – | 4,600 |
Gala Precision Engineering IPO Subscription Update
Coming Soon
Gala Precision Engineering IPO Allotment Status
Gala Precision IPO allotment status will be available on Link Intime’s website. Click on this link to get allotment status.
Gala Precision Engineering IPO Listing Details
| Listing Date | 09 September 2024 |
| BSE Scrip Code | Coming Soon |
| NSE Symbol | |
| ISIN | |
| Final Issue Price |
Listing Day Update
| Listing Exchange | BSE & NSE |
| Final Issue Price | Coming Soon |
| Open | |
| Low | |
| High | |
| Last Trade |
Gala Precision Engineering IPO Lead Manager(s)
Pl Capital Markets Private Limited
3rd Floor, Sadhana House, 570, P. B. Marg,
Worli, Mumbai – 400 018, Maharashtra, India
Phone: +91 22 6632 2222
Email: galaprecisionipo@plindia.com
Website: www.plindia.com
Gala Precision Engineering Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park L.B.S. Marg,
Vikhroli West, Mumbai – 400 083, Maharashtra
Telephone: +91 22 4918 6200
Email: galaprecision.ipo@linkintime.co.in
Website: www.linkintime.co.in
Gala Precision Engineering Contact Details
GALA PRECISION ENGINEERING LIMITED
A-801, 8th Floor, Thane One DIL Complex,
Ghodbunder Road Majiwade, Thane (West),
Maharashtra, India, 400610
Phone: +91 22-6930 9224
Email: investor.relations@galagroup.com
Website: www.galagroup.com
Gala Precision Engineering IPO FAQs
How many shares in Gala Precision IPO are reserved for HNIs and retail investors?
The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%.
How to apply for Gala Precision Public Offer?
The best way to apply for Gala Precision public offer is through Internet banking ASBA. You can also apply online through your stock broker using UPI. If you prefer to make paper applications, fill up an offline IPO form and deposit the same to your broker.
What is Gala Precision Offer GMP today?
Gala Precision IPO GMP today is ₹ 240 per share.
What is Gala Precision kostak rate today?
Gala Precision kostak rate today is ₹ NA per application.
What is Gala Precision Subject to Sauda rate today?
Gala Precision Subject to Sauda rate today is ₹ 5,100 per application.
Final thoughts
Gala Precision Engineering IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. Study the company well and subscribe if you feel good about it. I hope this post will give you enough details to research the company fundamentally. learn well and make wise decisions.
Happy Investing
