Gala Precision Engineering Launches Rs 167.93 Crore IPO On 2nd September

Gala Precision Engineering Ltd., a leading manufacturer of precision components, is set to raise Rs 167.93 crore through an initial public offering (IPO). The IPO is a book-built issue, combining both fresh issue shares and an offer for sale. Investors can subscribe to the IPO between September 2, 2024, and September 4, 2024, with the price band set at Rs.503 to Rs.529 per share.

IPO Details and Listing Information

The Gala Precision Engineering IPO comprises a fresh issue of 0.26 crore shares amounting to Rs 135.34 crore and an offer for sale of 0.06 crore shares totaling Rs 32.59 crore. The company has appointed PL Capital Markets Private Limited as the book-running lead manager and Link Intime India Private Ltd. as the registrar for the issue.

Following the closure of the subscription on September 4, 2024, the allotment of shares is expected to be finalized on September 5, 2024. The shares are set to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with a tentative listing date of September 9, 2024.

Company Overview and Global Reach

Incorporated in February 2009, Gala Precision Engineering Ltd. specializes in the production of precision components, including disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). The company’s products are integral to various sectors such as electrical, off-highway equipment, infrastructure, and general engineering. Additionally, Gala Precision serves the mobility segment, supplying to the automotive and railway industries.

Gala Precision Engineering has established itself as a key player in the global supply chain for original equipment manufacturers (OEMs), exporting its products to several countries, including Germany, Denmark, China, Italy, Brazil, the USA, Sweden, and Switzerland.

Objectives

The objectives of the Gala Precision Engineering IPO are to fund the establishment of a new manufacturing facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for high tensile fasteners and hex bolts; finance capital expenditure for equipment, plant, and machinery at the Wada, Palghar, Maharashtra site; repay or prepay certain borrowings; and support general corporate purposes to enhance the company’s operational capabilities.

Conclusion: Gala Precision Engineering Ltd.’s upcoming IPO represents a significant opportunity for investors to participate in the growth of a company with a strong global presence in the precision components sector. The funds raised will enable the company to expand its manufacturing capabilities and strengthen its position in the global market.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.