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Gala Precision Engineering IPO is a book-built issue of Rs 167.93 crores. The issue is a combination of a fresh issue of 0.26 crore shares aggregating Rs 135.34 crore and an offer for sale of 0.06 crore shares aggregating Rs 32.59 crore.
Gala Precision Engineering IPO opens for subscription on September 2, 2024, and closes on September 4, 2024. The price band for the IPO is set at ₹503 to ₹529 per share. The minimum lot size for an application is 28 Shares.
Company Summary
Incorporated in February 2009, Gala Precision Engineering Limited is a manufacturer of 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 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) The Springs Technology Division manufactures DSS, including Wedge Lock Washers (WLW) and CSS,
(ii) SFS, producing 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. Additionally, 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.
As of June 30, 2024, the company has 294 permanent employees and 390 contract employees. The permanent workforce includes 182 manufacturing workers, 19 employees for stores and logistics, 19 employees for quality assurance, 14 employees for tool room development and maintenance, and 22 employees for human resources and administration.
Company Financials
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 188.69 | 170.39 | 145.62 |
| Revenue | 204.38 | 167.08 | 147.96 |
| Profit After Tax | 22.33 | 24.21 | 6.63 |
| Net Worth | 104.45 | 83.66 | 59.32 |
| Reserves and Surplus | 94.67 | 81.13 | 56.79 |
| Total Borrowing | 55.03 | 58.6 | 56.89 |
Amount in ₹ Crore | |||
Objectives of the IPO
The company proposes to utilize the Net Proceeds towards funding the following objects
- 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 the purchase of equipment, plant, and machinery at Wada, Palghar, Maharashtra.
- Repayment/ prepayment, in full or part, of certain borrowings availed by the company.
- General corporate purposes.
Promoters of the company: The Promoters of the Company are Kirit Vishanji Gala and Smeet Kirit Gal. The Promoters, in aggregate, hold 3,380,632 Equity Shares in the Company, representing 33.43% of the issued, subscribed, and paid-up Equity Share capital of the Company.
IPO details
| IPO Date | September 2, 2024 to September 4, 2024 |
| Listing Date | Monday, September 9, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹503 to ₹529 per share |
| Lot Size | 28 Shares |
| Total Issue Size | 3,174,416 shares (aggregating up to ₹167.93 Cr) |
| Fresh Issue | 2,558,416 shares (aggregating up to ₹135.34 Cr) |
| Offer for Sale | 616,000 shares of ₹10 (aggregating up to ₹32.59 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| 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 | 1876 | ₹992,404 |
| B-HNI (Min) | 68 | 1904 | ₹1,007,216 |
Allotment Schedule
| Basis of Allotment | Thursday, September 5, 2024 |
| Initiation of Refunds | Friday, September 6, 2024 |
| The credit of Shares to Demat | Friday, September 6, 2024 |
| Listing Date | Monday, September 9, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 4, 2024 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.03% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Issue |
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