The initial public offer (IPO) of Gala Precision Engineering got a huge response, collecting a stunning 201.44 times subscription by the end of the bidding on Wednesday.
 "IPO")
Gala Precision Engineering Ltd has fixed a price band of Rs 503-529 per share. | Photo: Shutterstock
According to the National Stock Exchange (NSE) data, there were bids for 44,79,68,752 shares against the 22,23,830 shares available.
Non-Institutional Investors Lead the Way
The part of the IPO reserved for non-institutional investors was oversubscribed 414.65 times. Qualified Institutional Buyers (QIBs) were also significantly interested, with their segment getting 232.54 times subscription. Retail Individual Investors (RIIs) weren’t left behind either, subscribing 91.99 times.
Fast Subscription of Gala Precision IPO
On Monday, the IPO was fully subscribed just minutes after opening for bids and ended that day with a 10.83 times subscription rate.
Price and Shares of Gala Precision IPO
Gala Precision Engineering Ltd has set a price range of Rs 503-529 per share for its Rs 168-crore IPO. The initial public offering includes a fresh issue of 25.58 lakh equity shares worth Rs 135.34 crore, along with an offer-for-sale (OFS) of 6.16 lakh equity shares valued at Rs 32.58 crore by the promoter group and individual shareholders.
This brings the total deal size to Rs 168 crore at the upper end of the price band of Rs 529.
Purpose of the Funds
The proceeds from the fresh issue will be used for:
- Setting up a new manufacturing facility at Vallam-Vadagal in Sriperumbudur, Tamil Nadu for producing high tensile fasteners and hex bolts.
- Purchasing equipment, plant, and machinery at Wada, Palghar in Maharashtra.
- Paying off debts.
- General corporate purposes.
Company Background of Gala Precision
Gala Precision Engineering is known for manufacturing precision components, such as technical springs like disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS).
Clientele and Sectors
The company supplies its products to original equipment manufacturers (OEMs), Tier-1 suppliers, and channel partners. These products are widely used across various sectors, including renewable energy (like wind turbines and hydropower plants), industrial sectors (such as electrical, off-highway equipment, infrastructure, and general engineering), and mobility segments like automotive and railways.
Lead Manager and Listing of Gala Precision IPO
PL Capital Markets Pvt Ltd is acting as the sole book-running lead manager for this issue. The equity shares are set to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
