Gala Precision Engineering sets price band of Rs 503-529 a share for IPO

About this update from Gala Precision Engineering Limited

Gala Precision Engineering Ltd has set a price band of Rs 503-529 a share for its initial public offering that will open on September 2. The anchor book will start on August 30 and the issue will close on September 4.The IPO includes a fresh issue of 2.56 million shares and an offer for sale of 616,000 shares by existing promoters and shareholders. At the upper price band, the fresh issue is valued at Rs134.34 crore, the OFS at Rs32.58 crore, bringing the total issue size to Rs167.93 crore. The estimated market cap is around Rs670 crore.Gala Precision has two manufacturing facilities in Palghar (Maharashtra). It makes precision components of technical springs like disc and strip springs, coil and spiral springs, and special fastening solutions. These products are used in sectors like renewable energy (including wind turbine and hydropower plants), electrical, off-highway equipment, infrastructure and general engineering, and automotive and railways.Catch all the market action on our LIVE blogThe company claims to be a major disc springs manufacturer in the domestic market, boasting a 10 percent market share in the Indian disc springs market. It has a significant presence in the disc and strip springs market for the renewable industry with a 70 percent share in the domestic market and three percent in the global market.Gala, which competes with listed peers like Harsha Engineers International, SKF India, Sundaram Fasteners, Rolex Rings, Sterling Tools, and Ratnaveer Precision Engineering earned little more than 80 percent revenue from its springs technology business, 19.3 percent from fastening solutions, and half a percent from the surface engineering solutions segment.The firm recorded almost flat profit from continuing operations for the year ended March 2024 at Rs 22.53 crore, down just 0.14 percent from Rs 22.56 crore in the previous fiscal despite a healthy topline and operating numbers. The base in the previous year was high due to exceptional items. It reported exceptional loss of Rs 2.3 crore against exceptional gain of Rs 9.76 crore during the same period.Revenue from operations grew by 22.4 percent on-year to Rs 202.5 crore in the fiscal year 2024. EBITDA (earnings before interest, tax, depreciation and amortisation) in FY24 jumped 41.8 percent to Rs 38.8 crore with margin rising 260 bps to 19.1 percent compared to FY23.PL Capital Markets is the...

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