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20 Nov 2024
Gala Precision Engineering Limited IPO And Its GMP
Gala Precision Engineering Limited is a leading precision component manufacturer of technical springs like disc & strip springs (“DSS”) including wedge lock washers; coil & spiral springs (“CSS") and special fastening solutions (“SFS”) supplying original equipment manufacturers (“OEMs”), Tier 1 and channel partners; used in sectors like renewable energy including wind turbine and hydropower plants, various industrial sectors such as electrical, off-highway equipment, infrastructure and general engineering, mobility segments such as automotive and railways (Source: 1 Lattice Report).
Their technical springs and high-tensile fasteners have been supplied to customers in countries such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, Switzerland etc. Accordingly, they are a key link in the global supply chain for OEMs.
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IPO OVERVIEW
- Total Issue Size: ₹167.93 crores
- ● Fresh Issue: ₹135.34 crores (0.26 crore shares)
- ● Offer for Sale (OFS): ₹32.59 crores (0.06 crore shares)
- Issue Dates: September 2, 2024 - September 4, 2024
- Price Band: ₹503 to ₹529 per share
- Minimum Lot Size: 28 shares
- Lead Manager: Pl Capital Markets Private Limited
- Registrar: Link Intime India Private Ltd
WHAT IS GMP?
GMP stands for Grey Market Premium, and if you are planning your IPO then GMP plays an important role. A grey market is a place where stocks/shares get traded before getting officially listed on any stock exchange. The difference between the IPO price and the grey market price is known as GMP (grey market premium). GMP is a premium amount paid at which initial public offering (IPO) shares are traded before it is listed on the stock exchanges.
Gala Precision Engineering IPO GMP
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| 06-09-2024 | 529 | 250.0 (47%) | 06-Sep-2024 12:15 |
| 05-09-2024 | 529 | 260.0 (49%) | 05-Sep-2024 13:15 |
| 04-09-2024 | 529 | 230.0 (43%) | 04-Sep-2024 11:20 |
| 03-09-2024 | 529 | 268.0 (51%) | 03-Sep-2024 13:10 |
| 02-09-2024 | 529 | 268.0 (51%) | 02-Sep-2024 13:10 |
**The GMP prices displayed here are solely for informational purposes related to the grey market news. India IPO does not engage in or facilitate grey market trading, nor are these rates (sub2) indicative of any trading activity. We also do not recommend or endorse participation in the grey market.**
Gala Precision Engineering IPO Overview
| Detail | Description |
|---|---|
| IPO Date | September 2, 2024 to September 4, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹503 to ₹529 per share |
| Lot Size | 28 Shares |
| Total Issue Size | 3,174,416 shares (aggregating up to ₹167.93 Cr) |
| Fresh Issue | 2,558,416 shares (aggregating up to ₹135.34 Cr) |
| Offer for Sale | 616,000 shares of ₹10 (aggregating up to ₹32.59 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 10,111,584 |
| Share holding post issue | 12,670,000 |
Gala Precision Engineering IPO Timeline (Tentative Schedule)
| Detail | Description |
|---|---|
| IPO Open Date | Monday, September 2, 2024 |
| IPO Close Date | Wednesday, September 4, 2024 |
| Basis of Allotment | Thursday, September 5, 2024 |
| Initiation of Refunds | Friday, September 6, 2024 |
| Credit of Shares to Demat | Friday, September 6, 2024 |
| Listing Date | Monday, September 9, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 4, 2024 |
Gala Precision Engineering IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 28 | ₹14,812 |
| Retail (Max) | 13 | 364 | ₹192,556 |
| S-HNI (Min) | 14 | 392 | ₹207,368 |
| S-HNI (Max) | 67 | 1,876 | ₹992,404 |
| B-HNI (Min) | 68 | 1,904 | ₹1,007,216 |
Gala Precision Engineering IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.03% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Issue |
Gala Precision Engineering IPO Promoter Holding
| Share Holding Pre Issue | 74.56% |
| Share Holding Post Issue |
Gala Precision Engineering IPO Anchor Investors Details
| Bid Date | August 30, 2024 |
| Shares Offered | 950,586 |
| Anchor Portion Size (In Cr.) | 50.29 |
| Anchor lock-in period end date for 50% shares (30 Days) | October 5, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | December 4, 2024 |
Company & Financials
Incorporated in February 2009, Gala Precision Engineering Limited is a manufacturer of precision components such as disc and strip springs (DSS), coil and spiral springs (CSS) and special fastening solutions (SFS). The company supplies these products to original equipment manufacturers (OEMs). The company's products are used in sectors such as electrical, off-highway equipment, infrastructure and general engineering, as well as in mobility segments such as automotive and railway. The company has supplied its technical springs and high-tensile fasteners to customers in several countries including Germany, Denmark, China, Italy, Brazil, USA, Sweden and Switzerland, making it a crucial link in the global supply chain for OEMs.
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The company's business primarily comprises two divisions:
- (i) The Springs Technology Division manufactures DSS, including Wedge Lock Washers (WLW) and CSS.
- (ii) SFS produces anchor bolts, studs, and nuts.
Gala Precision Engineering Limited Financial Information
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||||||||||||
| Assets | 188.69 | 170.39 | 145.62 | |||||||||||||||||||||||||||||||||||||
| Revenue | 204.38 | 167.08 | 147.96 | |||||||||||||||||||||||||||||||||||||
| Profit After Tax | 22.33 | 24.21 | 6.63 | |||||||||||||||||||||||||||||||||||||
| Net Worth | 104.45 | 83.66 | 59.32 | |||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | 94.67 | 81.13 | 56.79 | |||||||||||||||||||||||||||||||||||||
| Total Borrowing | 55.03 | 58.6 | 56.89 | |||||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 23.59% |
| ROCE | 19.91% |
| Debt/Equity | 0.53 |
| RoNW | 21.38% |
| P/BV | 5.12 |
| PAT Margin (%) | 11.89 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 22.09 | 17.63 |
| P/E (x) | 23.95 | 30.01 |
Objectives of Gala Precision Engineering IPO
The company proposes to utilize the Net Proceeds towards funding the following objectives :
- 1. Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts.
- 2. Funding capital expenditure requirements towards the purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra.
- 3. Repayment/ prepayment, in full or part, of certain borrowings availed by the company.
- 4. General corporate purposes.
Gala Precision Engineering IPO Review
The company is in the business of manufacturing precision components having specialization in technical springs. It has posted growth in its top and bottom lines for the reported periods. The higher net for FY23 is attributed to exception items. Based on FY24 earnings, the issue relatively appears fully priced. Investors may park funds for the medium to long term.
FAQs for Gala Precision Engineering IPO
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What is the Gala Precision Engineering IPO?
Gala Precision Engineering IPO is a main-board IPO. The company is going to raise ₹167.93 Crores via IPO. The issue is priced at ₹503 to ₹529 per equity share. The IPO is to be listed on BSE & NSE.
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When will the Gala Precision Engineering IPO open for subscription?
The IPO is to open on September 2, 2024, for QIB, NII, and Retail Investors. The IPO will close on September 4, 2024.
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What is the Gala Precision Engineering IPO Investors Portion?
The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
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What is the Gala Precision Engineering Issue Size?
Gala Precision Engineering's issue size is ₹167.93 crores.
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What is the Gala Precision Engineering IPO Price Band?
Gala Precision Engineering IPO Price Band is ₹503 to ₹529.
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What is Gala Precision Engineering IPO Lot Size?
The minimum bid is 28 Shares with ₹14,812 amount.
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What is the Gala Precision Engineering IPO Allotment Date?
Gala Precision Engineering IPO allotment date is September 5, 2024.
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What is the Gala Precision Engineering IPO Listing Date?
Gala Precision Engineering's IPO listing date is September 9, 2024. The IPO is to be listed on BSE and NSE.
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What is the current GMP of Gala Precision Engineering?
The current GMP of Gala Precision Engineering is 250.0 (47%).
RHP:
RHP of Gala Precision Engineering Limited IPO.
DRHP:
DRHP of Gala Precision Engineering Limited IPO.
Anchor Investor Link:
Anchor Investor Link of Gala Precision Engineering Limited IPO.
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What is the Gala Precision Engineering IPO?
Gala Precision Engineering IPO is a main-board IPO. The company is going to raise ₹167.93 Crores via IPO. The issue is priced at ₹503 to ₹529 per equity share. The IPO is to be listed on BSE & NSE.
-
When will the Gala Precision Engineering IPO open for subscription?
The IPO is to open on September 2, 2024, for QIB, NII, and Retail Investors. The IPO will close on September 4, 2024.
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What is the Gala Precision Engineering IPO Investors Portion?
The investors’ portion for QIB is 50%, NII is 15%, and Retail is 35%.
-
What is the Gala Precision Engineering Issue Size?
Gala Precision Engineering's issue size is ₹167.93 crores.
-
What is the Gala Precision Engineering IPO Price Band?
Gala Precision Engineering IPO Price Band is ₹503 to ₹529.
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What is Gala Precision Engineering IPO Lot Size?
The minimum bid is 28 Shares with ₹14,812 amount.
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What is the Gala Precision Engineering IPO Allotment Date?
Gala Precision Engineering IPO allotment date is September 5, 2024.
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What is the Gala Precision Engineering IPO Listing Date?
Gala Precision Engineering's IPO listing date is September 9, 2024. The IPO is to be listed on BSE and NSE.
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What is the current GMP of Gala Precision Engineering?
The current GMP of Gala Precision Engineering is 250.0 (47%).
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