Gala Precision Engineering IPO Listing: Today marked the debut of Gala Precision Engineering’s shares on the domestic stock market. The Initial Public Offering (IPO) attracted overwhelming interest from investors, with subscriptions exceeding 201 times the total offer. Shares were priced at Rs 529 under the IPO. In a robust opening, shares listed at Rs 750.00 on the BSE and Rs 721.10 on the NSE, providing IPO investors with a remarkable listing gain of 41.78 percent. However, this initial excitement was short-lived as the stock experienced a decline, eventually dropping to Rs 722.00 on the BSE, which translates to a still commendable profit of 36.48 percent for IPO investors.
Gala Precision Engineering’s IPO, amounting to Rs 167.93 crore, was open for subscriptions from September 2nd to 4th. The offering received an exceptional response across various investor segments, with an impressive subscription of 201.41 times overall. Breakdown of the subscriptions shows that the portion reserved for qualified institutional buyers (QIB) was subscribed 232.54 times, while non-institutional investors (NII) and employees registered astonishing rates of 414.62 times and 258.95 times respectively. Retail investors also demonstrated solid interest, with a subscription rate of 91.95 times. The IPO involved the issuance of new shares worth Rs 135.34 crore and also included a sale of 6.16 lakh shares under the Offer for Sale section. The proceeds from this Offer for Sale will benefit shareholders selling their shares, while the capital raised from new shares will be allocated primarily for the acquisition of equipment, enhancements to plant and machinery, debt repayment, and general corporate needs.
Company Overview: Gala Precision Engineering
Founded in 2009, Gala Precision Engineering specializes in the manufacturing of disc and string springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). The company supplies these components to original equipment manufacturers (OEMs) and serves various industries, including electrical, off-highway equipment, automotive, and railways. In addition to its strong presence in India, Gala has built an international customer base that includes clients in Germany, Denmark, China, Italy, Brazil, Sweden, and Switzerland.
Financial Performance
Gala Precision Engineering has consistently improved its financial health over the years. In the fiscal year 2022, the company reported a net profit of Rs 59.32 crore, which rose to Rs 83.66 crore in FY 2023, culminating in a net profit of Rs 104.45 crore in FY 2024. Additionally, the company achieved a remarkable compound annual growth rate (CAGR) of over 17 percent in revenue, which reached Rs 204.38 crore during this period.
