Gala Precision Engineering IPO
Gala Precision Engineering Limited is launching its initial public offering (IPO) from September 2-4, 2024. The company manufactures precision components like disc and strip springs, coil and spiral springs, and special fastening solutions for various industries. This document provides key details about the IPO including offer size, price band, and financials.
RD
by RA ALOK DAIYA
IPO Overview and Timeline
1
IPO Open Date
September 2, 2024
2
IPO Close Date
September 4, 2024
3
Basis of Allotment
September 5, 2024
4
Initiation of Refunds
September 6, 2024
5
Credit of Shares to Demat
September 6, 2024
6
Listing Date
September 9, 2024
Gala Precision Engineering IPO is a book built issue of Rs 167.93 crores. The issue is a combination of fresh issue of 0.26 crore shares aggregating to Rs 135.34 crores and offer for sale of 0.06 crore shares aggregating to Rs 32.59 crores. The price band is set at ₹503 to ₹529 per share. The minimum lot size for an application is 28 Shares. PL Capital Markets Private Limited is the book running lead manager, while Link Intime India Private Ltd is the registrar for the issue.
About Gala Precision Engineering
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) in sectors such as electrical, off-highway equipment, infrastructure, and general engineering, as well as in mobility segments such as automotive and railway.
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.
IPO Details and Reservation
Gala Precision Engineering IPO offers 31,74,416 shares. 6,33,724 (19.96%) to QIB, 4,75,293 (14.97%) to NII, 11,09,017 (34.94%) to RII, 5,796 (0.18%) to employees and 9,50,586 (29.95%) to Anchor investors.
Company Financials
22%
Revenue Growth
Gala Precision Engineering Limited's revenue increased by 22% between the financial year ending with March 31, 2024 and March 31, 2023.
-8%
Profit After Tax
The company's profit after tax (PAT) dropped by -8% in the same period.
670.24
Market Capitalization
The market capitalization of Gala Precision Engineering IPO is Rs 670.24 Cr.
22.09
Pre-IPO EPS
Pre-IPO EPS is Rs 22.09, while post-IPO EPS is estimated at Rs 17.63.
ROE: 23.59%, ROCE: 19.91%, Debt/Equity: 0.53, RoNW: 21.38%, P/BV: 5.12, PAT Margin: 11.89%
Objects of the Issue
New Facility Setup
Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts.
Capital Expenditure
Funding capital expenditure requirements towards purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra.
Debt Repayment
Repayment/ prepayment, in full or part, of certain borrowings availed by the company.
General Corporate Purposes
Funds allocated for general corporate purposes.
IPO Recommendation
The company is in the business of manufacturing precision components having specialization in technical springs. It has posted growth in its top and bottom lines for the reported periods. Higher net for FY23 is attributed to exception items. Based on FY24 earnings, the issue relatively appears fully priced. Investors may subscribe to this IPO for medium to long term.