Gala Precision Engineering IPO: 10 things to know before subscribing to the Rs 167-cr offer

About this update from Gala Precision Engineering Limited

Gala Precision Engineering is tapping the primary market with an initial public offer to raise Rs 167.93 crore. The precision products manufacturer's offer is a combination of a fresh issue and an offer-for-sale component.Here are all the key details you need to know1.) IPO DatesThe IPO will open for subscription on September 2, 2024 and close on September 4, 2024Also read: Gujarat Gas board approves merger, demerger plan involving GSPC and GSPL2.) Price BandThe price band for the issue has been fixed at Rs 503-Rs 529 per share3.) Offer DetailsThe IPO includes 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 by the promoter group and individual selling shareholders. At the upper end of the price band, the IPO is expected to raise Rs 167.93 crore.Read more: Primary Market Action: Keep an eye on 6 IPOs launch, 10 listings lined up next week4.) Objectives of the IssueThe company plans to utilize the net proceeds for multiple objectives, including setting up a new facility in Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu, for manufacturing hex bolts and high-tensile fasteners; funding capital expenditure for purchasing machinery, plant, and equipment in Wada, Palghar, Maharashtra; repaying or prepaying a portion of its existing debt; and for general corporate purposes.5.) Lot SizeInvestors can bid for a minimum of 28 equity shares and in multiples thereof. Hence, the minimum investment by retail investors would be Rs 14,084 (28 (lot size) x Rs 503 (lower price band)). At the upper end, the bidding amount will increase to Rs 14,812.6.) Company ProfileFounded in February 2009, Gala Precision Engineering Limited specializes in manufacturing precision components, including disc and strip springs (DSS), coil and spiral springs (CSS), and specialized fastening solutions (SFS). These products are supplied to original equipment manufacturers (OEMs). Gala’s components serve a wide range of sectors, including electrical, off-highway equipment, infrastructure, and general engineering, along with mobility segments like automotive and railway industries.7.) FinancialsFor FY 2023-24, the company’s revenue from operations rose by 22.41 percent, reaching Rs 202.55 crore, up from Rs 165.47 crore in the previous fiscal year. This growth was fueled by higher sales of DSS, spurred by new customer acquisitions and risi...

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