Gala Precision Engineering is scheduled to hit the market on September 2, 2024 and close on September 4, 2024. Gala Precision Engineering plans to raise around ₹167.93 Cr through an IPO with a sale of up to 3,174,416 equity shares of ₹10 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.
Gala Precision Engineering Limited, established in February 2009, specializes in manufacturing precision components such as disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). The company serves original equipment manufacturers (OEMs) across various sectors, including electrical, off-highway equipment, infrastructure, general engineering, automotive, and railway. With a customer base exceeding 175 in over 25 countries—including Germany, Denmark, China, Italy, Brazil, the USA, Sweden, and Switzerland—Gala Precision plays a vital role in the global supply chain for OEMs.
The company's operations are divided into two main divisions: the Springs Technology Division, which produces DSS and CSS products like Wedge Lock Washers (WLW), and SFS, responsible for manufacturing anchor bolts, studs, and nuts. Gala Precision operates two manufacturing facilities in Wada District, Palghar, Maharashtra, and is in the process of establishing a new facility in Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu, aimed at developing high-tensile fasteners. As of June 30, 2024, the company employs 294 permanent staff members and 390 contract workers across various roles, including manufacturing, logistics, quality assurance, tool room development, and human resources.
Gala Precision Engineering IPO Details
Gala Precision Engineering IPO opens on September 2, 2024, and closes on September 4, 2024. The Listing date for Gala Precision Engineering IPO is on September 09, 2024. The price band for IPO is ₹503 to ₹529 per share and lot size of 28 Shares.
| IPO Date | September 2, 2024 to September 4, 2024 |
| Listing Date | September 9, 2024 |
| Price | ₹503 to ₹529 per share |
| Lot Size | 28 Shares |
| Issue Size | ₹167.93 Cr |
| Face Value | ₹10 per share |
Gala Precision Engineering IPO Tentative Timetable
Gala Precision Engineering opening date is September 2, 2024 and close date is September 4, 2024. The IPO allotment date is September 5, 2024. Therefund initiation of IPO is on September 6, 2024. The credit of shares in demat account is on September 6, 2024. The listing date is on September 9, 2024.
| Event | Date |
|---|---|
| IPO Opening | September 2, 2024 |
| IPO Closing | September 4, 2024 |
| IPO Allotment Date | September 5, 2024 |
| Refund Initiation | September 6, 2024 |
| Shares Credit to Demat | September 6, 2024 |
| Lisiting Date | September 9, 2024 |
Gala Precision Engineering IPO Lot Size
Lot Size of this IPO is 28 shares. A retail-individual investor can apply for up to 13 lots (364 shares or ₹192,556).
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Minimum) | 1 | 38 | ₹14,812 |
| Retail(Maximum) | 13 | 364 | ₹192,556 |
| S-HNI (Minimum) | 14 | 392 | ₹207,368 |
| B-HNI (Minimum) | 68 | 1,904 | ₹1,007,216 |
Gala Precision Engineering IPO Promoter Holding
| Pre Issue Share Holding | 74.56% |
| Post Issue Share Holding |
Gala Precision Engineering IPO Review
Gala Precision Engineering makes precision parts like high tensile fasteners, disc and strip springs, coil and spiral springs, and wedge lock washers. Their main customers include major manufacturers and suppliers in various industries such as renewable energy, industrial, and mobility. The company is led by Kirit Vishanji Gala, who is the Promoter, Chairman, and Managing Director. He has been with the company since it started and has over 30 years of experience in engineering and manufacturing.
In terms of finances, Gala Precision Engineering's revenue grew from ₹1,367.35 million in FY22 to ₹1,493.84 million in FY23, and is currently at ₹1,767.90 million in FY24. Their EBITDA also increased from ₹1,479.63 million in FY22 to ₹1,670.82 million in FY23, reaching ₹2,043.77 million in FY24. The profit after tax (PAT) rose from ₹66.31 million in FY22 to ₹225.63 million in FY23, and is now at ₹225.32 million in FY24. This shows that the company is performing well financially.
For the Gala Precision Engineering IPO, they are offering shares with a pre-issue earnings per share (EPS) of ₹22.28 and a post-issue EPS of ₹17.78. The pre-issue price-to-earnings (P/E) ratio is 23.74x, while the post-issue P/E ratio is 29.75x, compared to the industry P/E ratio of 31.70x. The company's return on capital employed (ROCE) for FY24 is 19.91%, and the return on equity (ROE) is 23.59%. These figures suggest that the IPO is priced reasonably.
The Grey Market Premium (GMP) indicates potential listing gains of 30% to 31%. Considering the company's financial performance and the IPO valuation, we recommend that investors consider the Gala Precision Engineering Limited IPO for short-term gains or long-term investment.
Gala Precision Engineering IPO Subscription Status (Bidding Details)
Table not foundGala Precision Engineering IPO Broker Recommendations
- Capital Market: To be updated soon
- Anand Rathi: To be updated soon
- SMC Global: To be updated soon
- Arihant Capital: To be updated soon
Gala Precision Engineering IPO FAQs
What is Gala Precision Engineering IPO?
Gala Precision Engineering is issuing 3,174,416 equity shares with a face value of ₹10 each, totaling up to ₹167.93 Cr. The shares are being offered at a price of ₹503 to ₹529 each, with a minimum order quantity of 28 shares.
Link Intime India Private Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.
When Gala Precision Engineering IPO will open?
Gala Precision Engineering will open on September 2, 2024 for QIB, NII, and Retail Investors.
When Gala Precision Engineering IPO will end?
Gala Precision Engineering will end on September 04, 2024.
What is Gala Precision Engineering IPO Size?
Gala Precision Engineering IPO size is ₹167.93 Cr.
What is Gala Precision Engineering IPO Price Band?
Gala Precision Engineering price band is ₹503 to ₹529 per share.
What is the Gala Precision Engineering IPO Allotment Date?
Gala Precision Engineering allotment date is September 05, 2024.
What is the Gala Precision Engineering IPO Listing Date?
Gala Precision Engineering listing date is September 09, 2024. The IPO is to be listed on BSE and NSE.
How to Gala Precision Engineering IPO through Zerodha?
To apply for the IPO “Gala Precision Engineering” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.
How to Apply Gala Precision Engineering IPO through Upstox?
To apply for the IPO “Gala Precision Engineering” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.
How to check Gala Precision Engineering IPO Allotment Status?
For Gala Precision Engineering IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.
What is Gala Precision Engineering IPO GMP?
You can check out here: Gala Precision Engineering IPO GMP. Check all IPO GMP here.