Gala Precision Engineering Limited

About Gala Precision Engineering Limited  Incorporated in 2009, Gala Precision Engineering Limited is a precision component manufacturer of technical springs. Its product portfolio includes disc & strip springs (DSS), coil & spiral springs (CSS), and special fastening solutions (SFS).  These products are used in the renewable energy sector, railways, automobiles, off-highway vehicles, heavy machinery, electrical and power equipment, commercial vehicles, passenger vehicles, and industrial infrastructure.  It operates two manufacturing facilities in Palghar, Maharashtra, with an annual production capacity of 246.46 million units of springs and washers and 0.42 million fasteners as of 31 March 2024. It is also setting up a new manufacturing facility in Sriperumbudur, Tamil Nadu, to develop high-tensile fasteners to complement its existing product portfolio.  In addition to its domestic sales, the company also exports its products globally. As of FY24, it serves 175 customers across 25 countries, including Germany, Denmark, China, Italy, Brazil, the USA, Sweden, and Switzerland.  The company has a significant presence in the DSS market, which is used in the renewable, electrical, and power equipment industry. The global DSS & WLW market is valued at $891 million, and Gala Precision Engineering had a global market share of nearly 2% in 2023.  Between FY22 and FY24, the company saw a CAGR rise of 11% in its revenue from operations and 50% in its net profit. Moreover, the Indian DSS & WLW market is expected to grow at a CAGR of 6% between FY24 and FY27 to reach $115 million, which could benefit the company.  And now, Gala Precision Engineering Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹167.93 crore, comprising fresh issue, aggregating to ₹135.34 crore, as well as an offer for sale, aggregating to ₹32.59 crore. The money raised from the fresh issue will be utilised to set up a new facility, fund capital expenditure requirements, repay borrowings and for general corporate purposes. Its shares will be listed on the NSE and BSE.  Here are key details about the Gala Precision Engineering IPO:     Company Name  Gala Precision Engineering Limited   Company Type  Private    Company Established On  2009   Gala Precision Engineering Limited IPO Opening Date  2nd September 2024    Gala Precision Engineering Limited IPO Closing Date  4th September 2024   Gala Precision Engineering Limited IPO Allotment Status  5th September 2024    Credit of Shares to the Demat Account  6th September 2024   Gala Precision Engineering Limited IPO Listing Date   9th September 2024     Gala Precision Engineering Limited IPO Face Value  ₹10 per share   Gala Precision Engineering Limited IPO Lot Size  28 shares    Gala Precision Engineering Limited IPO Issue Size  Approx ₹167.9 crore   Gala Precision Engineering Limited IPO to be Listed on  BSE, NSE    Gala Precision Engineering Limited IPO Price band  ₹ 503 – ₹ 529 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Revenue  ₹ 145 crore  ₹ 165 crore  ₹ 202 crore    Net Profit  ₹ 6.63 crore  ₹ 24.2 crore  ₹ 22.3 crore              Here’s a quick look at Gala Precision Engineering Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Well-established manufacturer with a ~15% market share in the domestic SFS market for wind turbines segment.  Operates in diverse markets with 175 clients across 25 countries as of FY24.  The company has long-standing relationships with customers ranging from 4 years to more than 15 years as of 31 March 2024.  Well-equipped manufacturing facilities certified with international standards such as IATF 16949 and ISO 9001:2015 certification.  Track record of financial growth with EBITDA margins of 15%, 17% and 19% in FY22, FY23, and FY24, respectively.   Risks and threats   Loss of any of its key customers might lead to significant reductions in sales as its top 3 customers accounted for 24% of its revenue from operations in FY24.  Does not have contracts or exclusive arrangements with suppliers, and an increase in the cost or a shortfall of materials could have an adverse effect on its business.  Operates a manpower-intensive business, with an average employee attrition rate of 10% for the last three fiscal years.  Subject to compliance with a wide range of regulatory requirements and foreign laws, exports accounted for 37% of its revenue from operations in FY24.  Exposed to adverse fluctuations in foreign exchange rates as it exports to 25 countries and engages in foreign currency transactions.  It faces competition from Harsha Engineers International, SKF India, Sundram Fasteners, Rolex Rings, Sterling Tools, and Ratnaveer Precision Engineering Limited.  The company has a high level of outstanding receivables, and ~41% are pending beyond the normal period as of FY24.  Has incurred significant indebtedness amassing to ₹100 crore of sanctioned indebtedness and ₹58 crore of outstanding indebtedness as of 30 June 2024.            Gala Precision Engineering Limited IPO details  | Gala Precision Engineering Limited IPO date  According to the offer document filed by the company with the SEBI, the Gala Precision Engineering IPO’s opening date – in other words, the Gala Precision Engineering IPO launch date – will be 2nd September 2024. The Gala Precision Engineering IPO closing date is 4th September 2024. After this, investors will be updated about the allotment status on 5th September 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 6th September 2024. The Gala Precision Engineering IPO listing date is 9th September 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | Gala Precision Engineering Limited IPO Price Band  The IPO is a fresh issue and an offer for sale. The Gala Precision Engineering IPO price band has been set between ₹503 and ₹529 per share. Interested investors can choose a price within this band to apply for the IPO.  The Gala Precision Engineering IPO listing price will be determined on 9th September 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Gala Precision Engineering Limited IPO Lot size  The Gala Precision Engineering IPO details have been declared. The Gala Precision Engineering IPO lot size is set at 28 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Gala Precision Engineering IPO issue size is approx ₹167.9crore.           How to pre-apply for the Gala Precision Engineering Limited IPO?  You can pre-apply for the Gala Precision Engineering Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Gala Precision Engineering Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Gala Precision Engineering Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Gala Precision Engineering Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Gala Precision Engineering Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Gala Precision Engineering Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Gala Precision Engineering Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Gala Precision Engineering Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Gala Precision Engineering Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Gala Precision Engineering Limited IPO  To apply for the Gala Precision Engineering Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Gala Precision Engineering Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Gala Precision Engineering Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.