The initial public offering (IPO) of Gala Precision Engineering Ltd saw a good response from investors on its first day of bidding, which opened on September 2. So far, the IPO recorded a subscription of 0.9 times, with investors bidding for 21 lakh equity shares against the total offer size of 22.2 lakh equity shares.
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Retail investors led the way, subscribing to 1.4 times their allotted quota, followed by non-institutional investors (high net-worth individuals) who subscribed to over 1 time their reserved portion. Employees subscribed to 3.6 times the reserved portion.
Gala Precision Engineering, a manufacturer of precision components, is set to debut on the bourses with an IPO of Rs 167.9 crore. The IPO, which is a book-built issue, combines a fresh issuance of 26 lakh shares aggregating to Rs 135.3 crore and an offer for sale (OFS) of 6 lakh shares, amounting to Rs 32.6 crore.
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The Gala Precision Engineering IPO subscription window will close on September 4. The finalisation of the allotment is expected to occur on September 5, with the company set to be listed on both the BSE and NSE on September 9.
The price band for the IPO has been set between Rs 503 and Rs 529 per share. PL Capital Markets Pvt Ltd is the book-running lead manager for the issue, and Link Intime India Pvt Ltd is the registrar.
On August 30, the IPO had already raised Rs 50.3 crore from anchor investors.
Founded in February 2009, Gala Precision Engineering specialises in disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). The company’s offerings are used by Original Equipment Manufacturers (OEMs) across various industries, including electrical, off-highway equipment, infrastructure, general engineering, automotive, and railways. The company supplies to several countries, including Germany, Denmark, China, Italy, Brazil, the USA, Sweden, and Switzerland.
For the financial year ending March 31, 2024, the company reported a 22 percent increase in revenue to Rs 204 crore but its profit after tax (PAT) declined by 8 percent to Rs 22 crore compared to the previous fiscal year.
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