IPO Subscribed Over 200 Times: Gala Precision Lists with Handsome Gains, Stock Locked at Upper Circuit

Shares of Gala Precision Engineering made a remarkable debut on the stock exchanges on Monday, September 9, with impressive gains that caught the attention of investors. The company’s shares were listed at Rs 750 on the BSE, reflecting a premium of 42% over the issue price of Rs 529. On the NSE, the shares were listed at Rs 721.10, offering a 36% return to investors compared to the allotment price. The stock is currently locked at the upper circuit limit of 5% at Rs 757.15 on NSE, with 3,19,259 shares on the bid side, taking the total market capitalization to approximately Rs 959.32 crore.

Massive Investor Interest: Over 200 Times Subscription

Gala Precision’s IPO witnessed overwhelming demand, with the issue being subscribed over 200 times on the final day of subscription. The quota reserved for non-institutional investors saw a massive 414 times subscription, showcasing the high interest from high-net-worth individuals. The retail individual investors’ category was also highly sought after, achieving a 91.95 times subscription rate. Meanwhile, the category for qualified institutional buyers was subscribed 232.54 times, highlighting the broad appeal of the IPO across different investor segments.

IPO Details: Fresh Issue and Offer for Sale

Priced in the range of Rs 503 to Rs 529 per share, the IPO was open for subscription from September 2 to 4. The offer comprised a fresh issue of 0.26 crore shares, aggregating to Rs 135.34 crore, and an offer for sale of 0.06 crore shares, totaling Rs 32.59 crore. This mix allowed the company to raise capital for growth while providing existing shareholders an opportunity to exit.

Pre-IPO Fundraising: Backing from Anchor Investors

Ahead of the IPO, Gala Precision raised Rs 50 crore from anchor investors, including prominent names like Negen Undiscovered Value Fund, NAV Capital Emerging Star Fund, and Cognizant Capital Dynamic Opportunities Fund. This pre-IPO investment underscored the confidence institutional investors have in the company’s future prospects.

Strategic Utilization of IPO Proceeds

The funds raised through the IPO will be strategically utilized to drive Gala Precision’s growth. The company plans to establish a new manufacturing facility in Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu, dedicated to producing hex bolts and high-tensile fasteners. Additionally, a portion of the funds will be allocated towards capital expenditure, including the purchase of machinery and equipment for the Wada, Palghar, Maharashtra facility. The proceeds will also be used to repay or prepay existing debt and support general corporate purposes, positioning the company for long-term success.

Excited about new investment opportunities? Discover our Upcoming IPO and be the first to invest in the next big thing. Secure your financial future today!

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.