Gala Precision Engineering Limited IPO And Its GMP IPO Details
| Detail | Description |
|---|---|
| IPO Date | September 2, 2024 to September 4, 2024 |
| Listing Date | [.] |
| Face Value | ₹ 10 per share |
| Price Band | ₹ 503 to ₹ 529 per share |
| Lot Size | 28 Shares |
| Total Issue Size | 31,74,416 shares (aggregating up to ₹ 167.93 Cr) |
| Fresh Issue | 25,58,416 shares (aggregating up to ₹ 135.34 Cr) |
| Offer for Sale | 6,16,000 shares of ₹10 (aggregating up to ₹ 32.59 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 1,01,11,584 |
| Share holding post issue | 1,26,70,000 |
About Gala Precision Engineering Limited IPO And Its GMP
Gala Precision Engineering Limited is a leading precision component manufacturer of technical springs like disc & strip springs (“DSS”) including wedge lock washers; coil & spiral springs (“CSS") and special fastening solutions (“SFS”) supplying original equipment manufacturers (“OEMs”), Tier 1 and channel partners; used in sectors like renewable energy including wind turbine and hydropower plants, various industrial sectors such as electrical, off-highway equipment, infrastructure and general engineering, mobility segments such as automotive and railways (Source: 1 Lattice Report).
Their technical springs and high-tensile fasteners have been supplied to customers in countries such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, Switzerland etc. Accordingly, they are a key link in the global supply chain for OEMs.
IPO OVERVIEW
Total Issue Size: ₹167.93 crores
● Fresh Issue: ₹135.34 crores (0.26 crore shares)
● Offer for Sale (OFS): ₹32.59 crores (0.06 crore shares)
Issue Dates: September 2, 2024 - September 4, 2024
Price Band: ₹503 to ₹529 per share
Minimum Lot Size: 28 shares
Lead Manager: Pl Capital Markets Private Limited
Registrar: Link Intime India Private Ltd
Gala Precision Engineering IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.03% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Issue |
Company & Financials
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). The company'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. The company has supplied its technical springs and high-tensile fasteners to customers in several countries including Germany, Denmark, China, Italy, Brazil, USA, Sweden and Switzerland, making it a crucial link in the global supply chain for OEMs.
The company's business primarily comprises two divisions:
(i) The Springs Technology Division manufactures DSS, including Wedge Lock Washers (WLW) and CSS.
(ii) SFS produces anchor bolts, studs, and nuts.
Objectives of Gala Precision Engineering IPO
The company proposes to utilize the Net Proceeds towards funding the following objectives :
- 1. Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts.
- 2. Funding capital expenditure requirements towards the purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra.
- 3. Repayment/ prepayment, in full or part, of certain borrowings availed by the company.
- 4. General corporate purposes.
Gala Precision Engineering IPO Review
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. The higher net for FY23 is attributed to exception items. Based on FY24 earnings, the issue relatively appears fully priced. Investors may park funds for the medium to long term.
Gala Precision Engineering Limited IPO And Its GMP Financial Information
Latest Revenue
₹ 204.38 Cr
Profit After Tax
₹ 22.33 Cr
Net Worth
₹ 104.45 Cr
Total Borrowing
₹ 55.03 Cr
| Period Ended | Assets | Revenue From Operations | Profit After Tax | Net Worth | Total Borrowing |
|---|---|---|---|---|---|
| 31 Mar 2024 | 188.69 | 204.38 | 22.33 | 104.45 | 55.03 |
| 31 Mar 2023 | 170.39 | 167.08 | 24.21 | 83.66 | 58.6 |
| 31 Mar 2022 | 145.62 | 147.96 | 6.63 | 59.32 | 56.89 |
| Amount in ₹ Crore | |||||
Gala Precision Engineering Limited IPO And Its GMP IPO GMP (Grey Market Premium)
“Grey Market Premium” or GMP is defined as the rate at which the IPO's shares are traded in the market before they are officially listed on the stock exchange.
The Gala Precision Engineering Limited IPO And Its GMP IPO GMP is currently trading at ₹250, reflecting the sentiment of unofficial investors before the official listing. This premium suggests a potential listing price of ₹779, which is 47.26% above the issue price. While the Grey Market Premium is a key indicator of demand and investor appetite, it is important to remember that GMP is highly volatile and should not be the sole factor in your investment decisions.
IPO Estimated Listing Return
Based on the IPO Price of ₹529 (highest price band), the latest uploaded Grey Market Premium (GMP) of ₹250 and a lot size of 28 shares.
Gala Precision Engineering Limited IPO And Its GMP IPO GMP TREND (DAILY UPDATES)
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| 2024-09-06 | ₹529 | ₹250.0 (47%) | - |
Gala Precision Engineering Limited IPO And Its GMP Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 23.59% |
| ROCE | 19.91% |
| Debt/Equity | 0.53 |
| RoNW | 21.38% |
| P/BV | 5.12 |
| PAT Margin (%) | 11.89 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 22.09 | 17.63 |
| P/E (x) | 23.95 | 30.01 |
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Competitive Strengths
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Gala Precision Engineering Limited IPO And Its GMP IPO Timeline
| IPO Open Date | Monday, September 2, 2024 |
| IPO Close Date | Wednesday, September 4, 2024 |
| Basis of Allotment | Thursday, September 5, 2024 |
| Initiation of Refunds | Friday, September 6, 2024 |
| Credit of Shares to Demat | Friday, September 6, 2024 |
| Listing Date | Monday, September 9, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 4, 2024 |
IPO Lot Size
| Investors | No.of lots | Shares Offered | Max Bid Amount |
|---|---|---|---|
| Retail (Min) | 1 | 28 | ₹ 14,812 |
| Retail (Max) | 13 | 364 | ₹ 1,92,556 |
| S-HNI (Min) | 14 | 392 | ₹ 2,07,368 |
| S-HNI (Max) | 67 | 1,876 | ₹ 9,92,404 |
| B-HNI (Min) | 68 | 1,904 | ₹ 10,07,216 |