Gala Precision Engineering IPO Details: The IPO for Gala Precision Engineering is set to open on September 2, 2024, and will close on September 4, 2024. This Book Built Issue aims to raise approximately ₹167.93 crores, including a fresh issue of ₹135.34 crores and an offer for sale of up to 616,000 equity shares, each with a face value of ₹10.
The price band for the IPO is ₹503 to ₹529 per share. The allocation is divided as follows: 35% for retail investors, 50% for Qualified Institutional Buyers (QIBs), and 15% for High Net-Worth Individuals (HNIs). The shares will be listed on the NSE and BSE on September 9, 2024, with the allotment date scheduled for September 6, 2024.
In terms of financial performance, Gala Precision Engineering reported a revenue of ₹204.38 crores for 2024, up from ₹167.08 crores in 2023. The company has also turned a profit of ₹22.33 crores in 2024, compared to a loss of ₹24.21 crores the previous year. Given these positive financial trends, the IPO may be considered a promising long-term investment.
Promoters
The company is led by promoters Kirit Vishanji Gala and Smeet Kirit Gala.
About Gala Precision Engineering
With over thirty years of expertise, Gala Precision Engineering is a distinguished provider of high-precision components. Their product range includes High Tensile Fasteners, Coil & Spiral Springs, Disc & Strip Springs, and Wedge Lock Washers. The company adheres to global standards, such as German DIN, while offering tailored solutions to meet client specifications. Gala Precision Engineering serves over 175 customers across more than 25 countries, with a significant international sales presence supported by its Frankfurt office.
The company is also expanding its operations with a new facility in Tamil Nadu focused on special fastening solutions. Emphasizing lean manufacturing and automation, Gala Precision Engineering aims to enhance productivity and minimize errors.
Table of Contents
ToggleGala Precision Engineering IPO Objectives:
The company proposes to utilise the Net Proceeds towards funding the following objects:
- Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts;
- Funding capital expenditure requirements towards purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra;
- Repayment/ prepayment, in full or part, of certain borrowings availed by the company; and
- General corporate purposes.
Gala Precision Engineering IPO Review (Apply or Not)
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Gala Precision Engineering IPO Date & Price Band Details:
IPO Open Date: | September 2, 2024 |
IPO Close Date: | September 4, 2024 |
Face Value: | ₹10 Per Equity Share |
IPO Price Band: | ₹503 to ₹529 Per Share |
Issue Size: | Approx ₹167.93 Crores, 3,174,416 Equity Shares |
Fresh Issue: | Approx ₹135.34 Crores, 2,558,416 Equity Shares |
Offer for Sale: | Approx 616,000 Equity Shares |
Issue Type: | Book Built Issue |
IPO Listing: | BSE & NSE |
Retail Quota: | Not more than 35% |
QIB Quota: | Not more than 50% |
NII Quota: | Not more than 15% |
DRHP Draft Prospectus: | Click Here |
RHP Draft Prospectus: | Click Here |
Anchor Investors List: | Click Here |
Gala Precision Engineering IPO Lot Size:
The minimum market lot for the Gala Precision Engineering IPO is 28 shares, requiring an application amount of ₹14,812. Retail investors are permitted to apply for up to 13 lots, which equates to a total of 364 shares or an amount of ₹192,556.
Application | Lot Size | Shares | Amount |
Retail Minimum | 1 | 28 | ₹14,812 |
Retail Maximum | 13 | 364 | ₹192,556 |
S-HNI Minimum | 14 | 392 | ₹207,368 |
B-HNI Minimum | 68 | 1,904 | ₹1,007,216 |
Gala Precision Engineering IPO Timeline:
The Gala Precision Engineering IPO is scheduled to open on September 2, 2024, and will close on September 4, 2024. The allotment of shares for this IPO will be finalized on September 5, 2024. Investors can expect the shares to be listed on the NSE and BSE on September 9, 2024.
IPO Open Date: | September 2, 2024 |
IPO Close Date: | September 4, 2024 |
Basis of Allotment: | September 5, 2024 |
Refunds: | September 6, 2024 |
Credit to Demat Account: | September 6, 2024 |
IPO Listing Date: | September 9, 2024 |
Gala Precision Engineering IPO GMP Today:
The last reported Grey Market Premium (GMP) for the Gala Precision Engineering IPO is ₹268. Based on the IPO price band of ₹529, the estimated listing price is around ₹797 (cap price + current GMP). This suggests an anticipated gain of approximately 50.66% per share.
Gala Precision Engineering Company Financial Report
The company reported revenue of ₹204.38 crores in 2024 against ₹167.08 crore in 2023. The company reported profit of ₹22.33 crores in 2024 against loss of ₹24.21 crores in 2023.
Amount ₹ in Crores
Period Ended | Revenue | Expense | Profit After Tax | Assets |
2022 | ₹147.96 | ₹136.74 | ₹6.63 | ₹145.62 |
2023 | ₹167.08 | ₹149.38 | ₹24.21 | ₹170.39 |
2024 | ₹204.38 | ₹176.79 | ₹22.33 | ₹188.69 |
Gala Precision Engineering IPO Valuation – FY2024
Check Gala Precision Engineering IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
KPI | Values |
ROE: | 23.59% |
ROCE: | 19.91% |
EBITDA Margin: | 19.86% |
PAT Margin: | 10.93% |
Debt to equity ratio: | 0.53 |
Earning Per Share (EPS): | ₹22.09 (Basic) |
Price/Earning P/E Ratio: | N/A |
Return on Net Worth (RoNW): | 21.38% |
Net Asset Value (NAV): | ₹103.30 |
Peer Group Comparison
Company | EPS | PE Ratio | RoNW % | NAV | Income |
Harsha Engineers International Limited | 12.24 | 44.33 | 9.48 | 129.09 | 1421.79 Cr. |
SKF India Limited | 111.6 | 48.50 | 20.57 | 542.63 | 4664.14 Cr. |
Sundram Fasteners Limited | 24.83 | 54.49 | 15.37 | 162.81 | 5720.47 Cr. |
Rolex Rings Limited | 57.30 | 40.83 | 17.37 | 329.81 | 1236.82 Cr. |
Sterling Tools Limited | 15.37 | 24.70 | 12.38 | 124.11 | 938.51 Cr. |
Ratnaveer Precision Engineering Limited | 7.61 | 24.69 | 12.32 | 51.78 | 602.40 Cr. |
Gala Precision Engineering IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: galaprecision.ipo@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html
IPO Lead Managers aka Merchant Bankers
- Pl Capital Markets Private Limited
Company Address
Gala Precision Engineering Limited
A-801, 8th Floor
Thane One DIL Complex, Ghodbunder Road Majiwade,
Thane (West)-400610
Phone: +91 22-6930 9224
Email: investor.relations@galagroup.com
Website: https://www.galagroup.com/
Gala Precision Engineering IPO FAQs
1. What are the dates for the Gala Precision Engineering IPO?
The IPO opens on September 2, 2024, and closes on September 4, 2024.
2. What is the minimum lot size for the IPO?
The minimum market lot for the Gala Precision Engineering IPO is 28 shares, requiring an application amount of ₹14,812.
3. How many lots can retail investors apply for?
Retail investors can apply for up to 13 lots, totaling 364 shares or an amount of ₹192,556.
4. When will the allotment of shares be finalized?
The allotment of shares will be finalized on September 5, 2024.
5. When will the shares be listed on the stock exchanges?
The shares are expected to be listed on the NSE and BSE on September 9, 2024.
6. What is the price band for the IPO?
The price band for the Gala Precision Engineering IPO is ₹503 to ₹529 per share.
7. How is the IPO allocation divided?
The allocation is divided as follows: 35% for retail investors, 50% for Qualified Institutional Buyers (QIBs), and 15% for High Net-Worth Individuals (HNIs).
8. Who are the promoters of Gala Precision Engineering?
The company is promoted by Kirit Vishanji Gala and Smeet Kirit Gala.
9. What is Gala Precision Engineering’s business focus?
Gala Precision Engineering specializes in high-precision components, including High Tensile Fasteners, Coil & Spiral Springs, Disc & Strip Springs, and Wedge Lock Washers. The company caters to global standards and serves over 175 customers in more than 25 countries.
10. Where is Gala Precision Engineering expanding its production capabilities?
The company is establishing a new facility in Tamil Nadu focused on special fastening solutions.