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Gala Precision Engineering’s IPO Takes Market by Storm
The initial public offering (IPO) of Gala Precision Engineering saw an overwhelming response just minutes after opening for bidding on Monday. Investors quickly seized the opportunity, pushing the subscription rate to 2.15 times the shares offered.
Impressive Gala Precision Engineering’s IPO Subscription Rates
At 11:21 AM on the NSE, data showed that the IPO had received bids for 47,77,444 shares, surpassing the 22,23,830 shares available. This enthusiastic response translated into a 3.15 times subscription for Retail Individual Investors (RIIs) and a 2.54 times subscription for non-institutional investors.
Gala Precision Engineering IPO Details and Timeline
The bidding for the IPO will continue until September 4. Gala Precision Engineering Ltd has set a price band of Rs 503-529 per share for its Rs 168-crore IPO.
Breakdown of the Gala Precision Engineering IPO
The IPO consists of:
- A fresh issue of 25.58 lakh equity shares worth Rs 135.34 crore
- An offer for sale (OFS) of 6.16 lakh equity shares valued at Rs 32.58 crore from promoter group entities and individual shareholders
At the upper end of the price band, the total transaction size will amount to Rs 168 crore.
Utilization of Funds
The funds from the fresh issue will be allocated for various purposes including:
- Setting up a new facility in Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts
- Purchasing equipment, plant, and machinery at Wada, Palghar in Maharashtra
- Paying off debt
- General corporate purposes
About Gala Precision Engineering
Gala Precision Engineering is known for manufacturing precision components such as various types of technical springs. Their product lineup includes:
- Disc & strip springs (DSS)
- Coil & spiral springs (CSS)
- Special Fastening Solution (SFS)
Their products cater to multiple sectors, including renewable energy sectors like wind turbine and hydropower plants, electrical, off-highway equipment, infrastructure, general engineering, automotive, and railways.
Partnerships and Market Presence
Gala Precision Engineering supplies its high-quality components to original equipment manufacturers (OEMs), Tier 1 suppliers, and through channel partners.
Lead Manager and Listing Plans
PL Capital Markets Pvt Ltd is the sole book-running lead manager for the issue. The equity shares from this IPO are set to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
This IPO has created significant buzz in the market, reflecting the strong interest and confidence in Gala Precision Engineering’s growth potential and strategic plans. Investors and market observers are keenly watching the progress of this IPO, which is shaping up to be a notable event in the financial calendar.
Stay tuned to India Press Live for more updates on this developing story.
