Gala Precision Engineering will launch its initial public offering (IPO) on Monday, September 2 and the issue can be subscribed till Wednesday, August 4. The company shall be offering its shares in the range of Rs 503-529 per shares and investors can apply for a minimum of 28 equity shares and its multiples thereafter.
Incorporated in February 2009, Gala Precision Engineering 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 IPO of Galal Precision Engineering includes a fresh share sale of Rs 135.34 crore and an offer-for-sale (OFS) of up to 6,16,000 equity shares by its promoters and existing shareholders of the company. At the upper end of the price band, the company is looking to raise a total of Rs 167.93 crore via IPO. Anchor book for the issue shall open on Friday, August 30.
The net proceeds from the issue shall be utilized towards setting up a new facility Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts; funding capital expenditure requirements; repayment or prepayment of certain borrowings availed by the company; and general corporate purposes.
Gala Precision'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. It has supplied its technical springs and high tensile fasteners to customers in several countries including Germany, Denmark, China, Italy, Brazil, USA, Sweden, and Switzerland.
The company has two manufacturing facilities in Wada District, Palghar, Maharashtra. Additionally, a new manufacturing facility is being set up in Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu. It had more than 175 customers in more than 25 countries as of March 30, 2024.
The company reported a net profit of Rs 22.33 crore with a revenue of Rs 204.38 crore for the financial year ended on March 31, 2024. The company's net profit came in at Rs 24.21 crore with a revenue of Rs 167.08 crore for the financial year 2022-23.
The company has reserved 50 per cent of its net offer for the qualified institutional bidders (QIBs), while 15 per cent of the offering is allocated towards the non-institutional investors (NIIs). Remaining 15 per cent shares will be allocated to the retail investors for the issue.
PL Capital Markets is the book running lead manager of the Gala Precision Engineering IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE, with September 9, Monday as the tentative date of listing at the bourses.