Gala Precision Engineering is set to make a strong Dalal Street debut on Monday, September 9, despite the volatility in the broader markets. The company is expected to deliver a healthy listing pop to the investors if one goes by the current grey market premium trends for the issue.
Grey market premium (GMP) of Gala Precision Engineering has corrected slightly amid the volatile market sentiments. Ahead of their listing, shares of Galal Precision were commanding a premium of Rs 245-250 per share, suggesting a listing pop of nearly 50 per cent for the investors. However, it was around Rs 290 when the allotment for the IPO was declared.
Gala Precision Engineering experienced exceptional demand for its offering, achieving a subscription rate exceeding 201 times. We project that the issue will make a robust debut on the stock exchanges with an anticipated premium of 50-55 per cent above the issue price, said Akriti Mehrotra, Research Analyst, StoxBox.
"GPEL has a rich 30 years of experience in designing, manufacturing and application engineering of high-performance standardised and customised disc springs and strip springs. We thus recommend the investors who have been allotted with the shares to hold the position from a medium to long term perspective," she said.
The IPO of Gala Precision Engineering was open for bidding between September 02 and September 04. It had offered its shares in the fixed price band of Rs 503-529 per share with a lot size of 28 shares. The company raised a total of Rs 167.93 crore from its IPO, which included a fresh share sale of up to Rs 135.34 crore and an offer-for-sale (OFS) up to 6,16,000 equity shares.
The issue was overall subscribed a bumper 201.41 times, thanks to a strong push from all investors. The quota for qualified institutional bidders (QIBs) was booked 232.54 times. The quota for non-institutional investors was subscribed 414.62 times. The portions reserved for retail investors and employees saw bidding for 91.95 times and 259 times during the bidding process.
Thane-based 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, incorporated in February 2009, supplies these products to original equipment manufacturers (OEMs).
Brokerages were mostly positive on the issue, suggesting investors to subscribe to it for a long-term. PL Capital Markets was the sole book running lead manager of the Gala Precision Engineering IPO, while Link Intime India served as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE bourses.