Gala Precision Engineering IPO opens on September 2: Check price band, lot size & more

Gala Precision Engineering IPO price band was announced on Tuesday, August 27, ahead of the launch of the main board issue next week.

Gala Precision Engineering Limited has fixed the price band of its initial public offering at ₹503 to ₹529 per share.

The book-building issue, worth ₹167.9 crore, will remain open for subscription from September 2 to September 4. Here are five important things to know about the Gala Precision Engineering Limited IPO.

Gala Precision Engineering IPO offer size and minimum investment

The mainboard public offer comprises a fresh issue of 25.58 lakh shares, worth ₹135.34 crore, and an offer-for-sale (OFS) component of 6.16 lakh shares, amounting to ₹32.58 crore.

The Qualified Institutional Buyers (QIBs) will be allocated 50% of the shares of Premier Energies IPO. The company has reserved 35% of the issue size for retail investors and 15% for non-institutional investors (NIIs).

The minimum lot size for retail investors is 28 shares and multiples thereof. This means that retail investors must invest a minimum of ₹14,812 to subscribe to this IPO.

Gala Precision Engineering business model and top clients

Gala Precision Engineering Limited is a leading manufacturer of technical springs, such as disc and strip springs or DSS, which are used in renewable energy, railways, automobiles, off-highway vehicles, heavy machinery, and electrical and power equipment.

The company also manufactures coil and spiral springs (CSS), as well as special fastening solutions (SFS). The CSS products are used in commercial vehicles, passenger vehicles, railways and industrial infrastructure.

Gala Precision Engineering supplies these products to original equipment manufacturers (OEMs) worldwide, including Germany, Denmark, China, Italy, Brazil, the United States, Sweden, and Switzerland.

The company operates two manufacturing facilities at Wada, located in Maharashtra’s Palghar. It is also setting up a new manufacturing facility in Vallam, Tamil Nadu.

The key clients of the company include global OEMs, tier 1 and channel partners across sectors. Some of the big players are: John Deere India, Faiveley Transport Rail Technologies India, Brembo Brake India, BUFAB India Fasteners, Altra Industrial Motion India, Endurance Technologies Limited, Enercon GmbH, EXEDY Clutch India, Hitachi Astemo Chennai Private Limited, MSL Driveline Systems, SAL Automotive, Schaeffler India, Turbo Energy and Wuerth Industrial Services India.

Gala Precision Engineering key financials

Gala Precision Engineering’s consolidated revenue from operations stood at 202 crore for the fiscal year ended 31 March 2024. The company’s net profit for the period stood at ₹22.3 crore.

Between FY22 and FY24, the company saw a CAGR rise of 11% in its revenue from operations and 50% in its profit. Moreover, India’s disc & strip springs (DSS) market is expected to grow at a CAGR of 6% between FY24 and FY27, which could benefit the company.

Gala Precision Engineering IPO objectives

The net proceeds of the Gala Precision Engineering IPO will be used to set up a new facility at Vallam-Vadagal in Sriperumbudur of Tamil Nadu to manufacture high tensile fasteners and hex bolts.

The proceeds will also be used to fund capital expenditure requirements for the purchase of equipment, plant, and machinery at the company’s Wada units. Gala Technologies will also use the proceeds to repay/prepay certain borrowings and for general corporate purposes.

Gala Precision Engineering IPO key dates

Gala Precision Engineering IPO subscription will close on September 4. The IPO share allotment status is expected to be finalised on Thursday, September 5.

Initiation of refunds for unsuccessful bidders and credit of shares to the Demat accounts of successful bidders will be done on Friday, September 6. The shares will tentatively list on Monday, September 9, on the BSE and NSE.