Gala Precision Engineering | Business Upturn

Gala Precision Engineering IPO lists at Rs 721.10, 36% premium

News Desk — Mon, 09 Sep 2024 04:21:16 +0000

Gala Precision Engineering Limited, a manufacturer of precision engineering components, is set to list its shares on the stock exchanges today at 10 AM. The shares are expected to debut at ₹721.10, representing a significant premium of 36.31% over the issue price of ₹529 per share.

The IPO, which opened for subscription from September 2-4, 2024, receives an overwhelming response from investors, with the issue being subscribed 201.41 times. The offering consists of a fresh issue of ₹135.34 crore and an offer for sale of ₹32.59 crore, aggregating to a total issue size of ₹167.93 crore.

The strong anticipated listing performance reflects investor confidence in the company’s growth prospects and its ability to capitalize on the increasing demand for precision engineering components across various industries. Gala Precision Engineering focuses on quality, innovation, and customer satisfaction, positioning it well in the market.

The company plans to utilize the proceeds from the IPO to fund its expansion plans, including setting up a new manufacturing facility and upgrading its existing operations. This strategy enables Gala Precision Engineering to enhance its production capacity and cater to the growing needs of its customers.

As the listing approaches, investors eagerly await the debut of Gala Precision Engineering on the stock exchanges, which is expected to highlight the strength of the Indian capital markets and the appetite for well-performing companies.

Gala Precision Engineering IPO subscribed fully within hours of opening on Day 1

Markets Desk — Mon, 02 Sep 2024 05:48:03 +0000

Gala Precision Engineering IPO (Initial Public Offering) was fully subscribed within hours of opening on Day 1. As of 11:00 AM, Gala Precision Engineering IPO was subscribed 1.8 times, with the NII (Non-institutional investor) portion being subscribed 2.10 times and the retail portion being subscribed 2.6 times. The portion reserved for eligible employees of the company was subscribed 11.63 times as of 11:00 am, data from exchanges showed.

Gala Precision Engineering garnered Rs. 50.29 crores from anchor investors ahead of its initial public offering that opens for public subscription on Monday, September 2, 2024. The company informed the bourses that it allocated 9,50,586 equity shares at Rs. 529 per share on Friday, August 30, 2024, to anchor investors.

Foreign and Domestic Institutions who participated in the anchor were NAV Capital Emerging star fund, Negen Undiscovered value fund, Cognizant capital Dynamic Opportunities Fund, India Emerging Giants Fund, Finavenue Capital Trust, ChhatisgarhInvestments, Gagandeep Credit and Resonance Opportunities Fund.

The IPO consists of fresh issue of up to 25,58,416 equity shares and an offer for sale (OFS) of up to 6,16,000 equity shares by Promoter Group Selling Shareholders and Individual Selling Shareholders.

The price band for the Offer has been determined at Rs 503 – Rs 529 per equity share. The IPO will fetch Rs 167.93 crore at the upper end of the price band. Investors can bid for a minimum of 28 equity shares and in multiples of 28 equity shares thereafter.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Net Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Net Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders.

Gala Precision Engineering IPO set to open on September 2 with price band of ₹503-529

Aditya Bhagchandani — Tue, 27 Aug 2024 06:07:55 +0000

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.

Gala Precision Engineering plans IPO to fuel growth: Key details and financial insights

Finance Desk — Sat, 17 Feb 2024 15:31:34 +0000

Maharashtra-based Gala Precision Engineering is set to embark on an Initial Public Offering (IPO) as it recently filed preliminary papers with SEBI (Securities and Exchange Board of India). The IPO comprises 31,74,416 equity shares, with 25,58,416 offered as a fresh issue by the company and 6,16,000 through an offer-for-sale by existing shareholders.

Key Features of Gala Precision Engineering’s IPO:

Fresh issue of 25,58,416 equity shares and an offer-for-sale of 6,16,000 equity shares.
Promoter Vishanji Harshi Gala to be the major selling shareholder in the offer-for-sale.
Proceeds to be used for a new facility in Tamil Nadu, equipment purchase, and debt repayment.
DSS products, including disc & strip springs, cater to various sectors like renewable energy, railways, and automobiles.
The company holds a 70% share in the domestic DSS market for the renewable industry.

Financial Highlights:

Net profit increased by 240% YoY to Rs 22.6 crore for FY23, with revenue growing by 14% to Rs 165.5 crore.
The net profit for H1 FY24 stood at Rs 10.13 crore on revenue of Rs 95.68 crore.
Gala Precision Engineering maintains a comfortable financial risk profile with a gearing of 0.9 times and TOLTNW ratio of 1.4 times.
Operating margin rose to 17.6% in FY23 from 13.1% in FY21, showcasing an improvement in profitability.

Strengths:

Extensive promoter experience in the engineering and automotive industry.
Diversified product profile and end-user industry, protecting against demand slowdown in a single sector.
Comfortable financial risk profile with moderate leverage and healthy profitability.
Improvement in operating margin driven by new products and overseas market expansion.

Weaknesses:

Large working capital requirement with operations being working capital intensive.
Exposure to cyclicality in end-user industries, impacting the company’s topline and profitability.

Liquidity:

Adequate liquidity with expected cash accruals against debt obligations in fiscals 2024 and 2025.
Bank lines were utilized 81% on average in the 12 months through March 2023.
Cash and bank balance stood at Rs 12 crore, and the current ratio was 1.52 times as of March 31, 2022.

Gala Precision Engineering’s IPO aims to support its growth initiatives and capitalize on its strong market presence in the precision engineering sector.

Gala Precision Engineering files for IPO with SEBI

Markets Desk — Sat, 17 Feb 2024 08:41:21 +0000

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.