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Gala Precision Engineering Limited, a manufacturer of high-quality precision components, is gearing up for its initial public offering (IPO).
The offering is set to open on Monday, September 2, 2024, with a price band ranging from Rs 503 to Rs 529 per share. The IPO is scheduled to close the subscription on Wednesday, September 4, 2024, offering investors a chance to bid for a minimum of 28 shares and in multiples of 28 thereafter.
About the IPO Details
The IPO consists of a fresh issue of up to 25,58,416 equity shares and an offer for sale (OFS) of up to 6,16,000 equity shares from the company’s promoters and individual shareholders.
The offering is structured as follows:
Qualified Institutional Buyers (QIBs) - 50 per cent reserved
Non-Institutional Investors (NIIs) - 15 per cent
Retail Individual Investors (RIIs) - 35 per cent
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Fund Utilisition
The proceeds from the fresh issue will be used to fuel the company’s growth initiatives, including setting up a new facility in Sriperumbudur, Tamil Nadu, for manufacturing high-tensile fasteners and hex bolts.
Furthermore, the funds will also go toward capital expenditure for machinery at its existing plant in Wada, Maharashtra, and repaying certain borrowings.
About the company
Gala Precision Engineering, under the leadership of Kirit Vishanji Gala, has more than three decades of experience in the precision manufacturing sector.
The company operates in producing technical springs like disc & strip springs (DSS), coil & spiral springs (CSS), and special fastening solutions (SFS). Furthermore, the company holds an estimated market share of 15 per cent in the domestic SFS market, especially for wind turbine components.
Financial Highlights
About the financial performance, in FY 2023-24, the company’s revenue rose by 22.41 per cent, reaching Rs 2,025.45 million, up from Rs 54.65 million the previous year.
The company’s profit after tax for the fiscal year stood at Rs 223.32 million.
