Gala Precision Engineering Limited is a distinguished player in the design and manufacturing of precision components, including High Tensile Fasteners, Disc & Strip Springs, Coil & Spiral Springs, and Wedge Lock Washers. With over three decades of industry experience, Gala Precision has established a strong foothold with major OEMs, Tier-1 suppliers, and channel partners across diverse sectors such as Renewable Energy, Industrial, and Mobility.

The Gala Precision Engineering IPO is scheduled to open on September 02, 2024, and will close on September 04, 2024. The Book Built Issue consists of a fresh issue of 2.55 lakh shares worth ₹135.34 crores and an Offer for Sale of 0.61 lakh shares totaling ₹32.58 crores, bringing the total issue size to ₹167.92 crores. The share price band is set between ₹503 and ₹529 per share. The allotment is expected to be finalized on September 05, 2024, with a tentative listing date on September 09, 2024 on both the BSE and NSE.

Retail investors can apply for a minimum lot of 28 shares, which requires an investment of ₹14,812. High-Net-Worth Individuals (HNIs) must apply for a minimum of 14 lots (392 shares), amounting to ₹207,368. PL Capital Markets Private Limited is the book-running lead manager, and Link Intime India Private Limited is the registrar for the issue.

Utilization of IPO Proceeds:

The funds raised through the IPO will be allocated as follows:

₹370.00 million for setting up a new manufacturing facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu, to produce high tensile fasteners and hex bolts.

₹110.69 million for capital expenditure towards purchasing equipment, plant, and machinery at Wada, Palghar, Maharashtra.

₹454.30 million for the repayment or prepayment of certain borrowings.

General corporate purposes.

Financial Performance:

Gala Precision Engineering has demonstrated robust financial growth. Revenue increased from ₹1,367.35 million in FY22 to ₹1,493.84 million in FY23, and further to ₹1,767.90 million in FY24. EBITDA rose from ₹1,479.63 million in FY22 to ₹1,670.82 million in FY23, reaching ₹2,043.77 million in FY24. PAT also grew from ₹66.31 million in FY22 to ₹225.63 million in FY23, and stands at ₹225.32 million in FY24, indicating a steady financial performance.

Also Read : Jeyyam Global Foods IPO ends today: GMP zooms 60%; Should you bid?

The IPO is priced at 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 average of 31.70x. The company's Return on Capital Employed (ROCE) for FY24 is 19.91%, and Return on Equity (ROE) is 23.59%, suggesting that the IPO is fairly priced relative to industry norms.

Grey Market Premium (GMP):

The Grey Market Premium for the Gala Precision Engineering IPO is expected to be in the range of ₹250 to ₹270, indicating potential listing gains of 47% - 50%. GMP is influenced by market demand and supply and should be considered with caution as it does not guarantee the actual listing price.

Live Subscription Status:

As of 01:36 PM on September 04, 2024, the Gala Precision Engineering IPO has been subscribed 66.66 times on its last day of the subscription period. For the latest subscription status, investors can check the details at BSE.

Allotment Status:

The IPO allotment is set for September 05, 2024. To check the allotment status:

Visit the IPO allotment status page.

Select Gala Precision Engineering Limited IPO from the dropdown menu.

Enter your application number, PAN, or DP Client ID.

Submit the details to view the allotment status.

Based on the company's financial performance and IPO valuation metrics, it is recommended that investors consider applying to the Gala Precision Engineering Limited IPO for potential listing gains or long-term investment opportunities.

For further details on upcoming IPOs and market trends, visit our Best IPO to Apply Now and Top News Headlines sections.

Stay updated with market insights by joining our Trading with CA Abhay Telegram Channel for expert stock market advice and investment calls. Also, join our Finance Saathi Telegram Channel for the latest news and IPO updates.

Open a free Demat account with Choice Broking FinX to start investing today.