Mumbai-based Gala Precision Engineering Limited, a leading precision component manufacturer of technical springs, has filed its Draft Red Herring Prospectus (DRHP) with capital market regulator Sebi to raise funds for its initial public offering (IPO).
The IPO has a face value of Rs 10 and consists of a fresh issue of equity shares up to 25.58 lakh and an offer for sale up to 6.16 lakh equity shares by the Promoter Group and Individual Selling Shareholders. The offer includes a reservation for subscription by eligible employees.
The offer for sale consists of the sale of equity shares of up to 385,200 by Vishanji Harshi Gala, up to 58,600 equity shares by Kirit Vishanji Gala (HUF), up to 50,000 equity shares by Nayna Gala, up to 40,000 equity shares by Satish Kotwani, up to 31,400 equity shares by Hemlata Dhiraj Shah, up to 28,000 equity shares by Dhiraj Nanchand Shah, up to 12,800 equity shares by Urmil Dhiraj Shah, and up to 10,000 equity shares by Rupa Sunil Mehta.
The Offer is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 35% of the offer shall be available for allocation to retail individual bidders.
The proceeds from the fresh issue, to the extent of Rs 37 crore for setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts; Rs 11.07 crore for funding capital expenditure requirements towards the purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra; Rs 30 crore for repayment/ prepayment, in full or part, of certain borrowings availed by the Company; and General Corporate Purposes.
Led by Kirit Vishanji Gala, Gala Precision is a technology-driven company with a strong focus on quality, design tool development, and application engineering. It has more than 3 decades of experience in developing customized products to meet the evolving needs of its customers and commands an approximation of 15% market share in the domestic SFS market for wind turbines.
Gala Precision’s business primarily comprises of springs technology division, which manufactures DSS including wedge lock washers (“WLW”), coil & spiral springs (“CSS“) and special fastening solution (“SFS”) which manufactures anchor bolts, studs, and nuts.
