Gala Precision Engineering Limited is gearing up for its initial public offering (IPO), which will open for subscription on September 2 and close on September 4. The company has set the price band for its shares between ₹503 and ₹529 each.
The IPO will include 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 end of the price band, the total issue size is approximately ₹167.93 crore, with the fresh issue valued at ₹134.34 crore and the offer for sale at ₹32.58 crore.
The price-to-earnings ratio at the upper end of the price band is 22.02 times, and at the lower end, it is 20.94 times. This compares to an average industry peer group P/E ratio of 39.59 times. The lot size for the IPO is 28 shares, and subsequent purchases must be in multiples of 28 shares.
Allocation for the IPO is divided into:
- 50% for qualified institutional buyers (QIB)
- 15% for non-institutional investors (NII)
- 35% for retail investors
The basis of allotment will be finalized on September 5, with refunds processed on September 6. Shares are expected to be credited to demat accounts on the same day, and the stock will likely list on the BSE and NSE on September 9.
Gala Precision Engineering is a manufacturer of precision components, including technical springs and fastening solutions. Its products are used across various sectors, such as renewable energy, infrastructure, automotive, and railways. The company plans to use the IPO proceeds to set up a new facility in Tamil Nadu, acquire machinery in Maharashtra, repay some existing debt, and for general corporate purposes.
Link Intime India Private Ltd is the registrar for the IPO, while Pl Capital Markets Private Limited is the book running lead manager.
