Gala Precision Engineering, a key player in the precision components industry, has opened its much-anticipated Initial Public Offering (IPO) to the market. Specializing in the design and manufacturing of high-performance components such as High Tensile Fasteners, Disc & Strip Springs, Coil & Spiral Springs, and Wedge Lock Washers, the company has a robust clientele that includes major Original Equipment Manufacturers (OEMs), Tier-1 suppliers, and channel partners across diverse sectors like Renewable Energy, Industrial, and Mobility.

The Gala Precision IPO is a Book Built Issue valued at ₹167.92 crores. This offering includes a Fresh Issue of 2.55 lakh shares, amounting to ₹135.34 crores, and an Offer for Sale of 0.61 lakh shares totaling ₹32.58 crores. The subscription window is open from September 2, 2024, to September 4, 2024. Investors eagerly await the allotment, expected to be finalized on or around September 5, 2024, with shares likely to be listed on the BSE and NSE by September 9, 2024.

The share price band for this IPO is set between ₹503 and ₹529 per equity share. Retail investors are required to invest a minimum of ₹14,812 for 28 shares, while High-Net-Worth Individuals (HNIs) need to invest a minimum of ₹207,368 for 14 lots, or 392 shares.

PL Capital Markets Private Limited is the book-running lead manager for this IPO, and Link Intime India Private Limited is serving as the registrar.

Gala Precision Engineering Limited IPO GMP Today

As the Gala Precision Engineering IPO continues to generate buzz, the Grey Market Premium (GMP) is being closely monitored. Currently, the GMP is expected to range between ₹150 to ₹160 per share. It’s important to note that the GMP is a reflection of demand and supply dynamics in an unorganized market and should not be the sole factor in making investment decisions. The GMP data is provided for educational and informational purposes only, as real price discovery occurs only when the shares are listed on the exchange.

Gala Precision Engineering Limited IPO Live Subscription Status Today

By 2:34 PM on September 3, 2024, the live subscription status for the Gala Precision IPO indicated a strong market response, with the IPO being subscribed 38.65 times on the second day of its subscription period. Investors can continue to monitor the live subscription status on the BSE to stay updated on the latest figures.

Gala Precision Engineering Limited IPO Allotment Status

The allotment date for the Gala Precision IPO is set for September 5, 2024. Investors can check their allotment status by visiting the registrar’s website once the allotment is finalized. To check the allotment status:

Go to the IPO allotment status page.

Select Gala Precision Engineering Limited IPO from the dropdown list.

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

Submit the details to view your allotment status.

This straightforward process allows investors to quickly determine whether they have been allotted shares.

Objectives of Gala Precision Engineering Limited IPO

The proceeds from the Gala Precision Engineering IPO will be allocated as follows:

₹370.00 million will be used to set up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts.

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

₹454.30 million will be used for the repayment/prepayment of certain borrowings availed by the company.

The remaining funds will be utilized for general corporate purposes.

Gala Precision Engineering IPO Review

Gala Precision Engineering has established itself as a leader in the precision components industry, thanks to its innovative products and strong market presence. The company’s operations are spearheaded by Kirit Vishanji Gala, the Promoter, Chairman, and Managing Director, who has been instrumental in expanding the company’s footprint both in India and internationally. With over three decades of experience, Kirit Vishanji Gala has guided the company to new heights.

On the financial front, Gala Precision Engineering has shown consistent growth. The company’s revenue increased from ₹1,367.35 million in FY22 to ₹1,493.84 million in FY23, and it stands at ₹1,767.90 million in FY24. Similarly, EBITDA rose from ₹1,479.63 million in FY22 to ₹1,670.82 million in FY23, and it is now ₹2,043.77 million in FY24. The company’s Profit After Tax (PAT) also showed a positive trajectory, increasing from ₹66.31 million in FY22 to ₹225.63 million in FY23 and holding steady at ₹225.32 million in FY24.

In terms of valuation, Gala Precision Engineering is offering shares at a pre-issue EPS of ₹22.28 and a post-issue EPS of ₹17.78. The pre-issue P/E ratio stands at 23.74x, while the post-issue P/E ratio is 29.75x. These figures compare favorably against the industry P/E ratio of 31.70x. The company’s Return on Capital Employed (ROCE) for FY24 is 19.91%, and the Return on Equity (ROE) is 23.59%. These metrics suggest that the IPO is fairly priced.

Given the company’s strong financial performance and promising future prospects, the Gala Precision Engineering IPO offers potential listing gains of 30% to 31%. This, combined with the robust demand reflected in the subscription status, makes the IPO an attractive option for both listing gains and long-term investment.

Investors looking to apply for this IPO should carefully consider these factors and monitor the ongoing subscription status and Grey Market Premium for the most informed decision-making.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.