An in-depth guide to Gala Precision Engineering’s IPO, covering essential details like the IPO date, price, and allotment process.
Gala Precision Engineering specializes in the design and manufacture of precision components and systems for various industrial applications. It has published that its IPO is going to be open on 2nd September 2024 and will end on 4th September 2024. It aims to gather INR 167.93 crores Via IPO, which consists of a fresh issue of INR 135.34 Crores (2,558,416 equity shares) and an offer for sale of 616,000 equity shares, with a price range of INR 503 to INR 529 per share, a face value of INR 10 per equity share.
Table of Contents
- Company Overview
- Company Strategy
- Details on IPO Date and Price Band
- IPO Objective
- Market Lot Information on Gala Precision Engineering IPO
- Allotment Dates for Gala Precision Engineering IPO
- Application Process of IPO
- Financial Analysis of Company
- IPO Valuation
- Competitor Analysis
- Registrar for Gala Precision Engineering IPO
- Offer Lead Manager
- Company Address
Company Overview
Gala Precision Engineering is a company that deals with high-precision component production for different industrial applications such as automotive, aerospace, hydraulics, and pneumatics, among others. Being an innovative organization that emphasizes the delivery of high-quality products, the company creates technologically integrated solutions that conform to industry requirements. Gala Precision Engineering utilizes modern technology in manufacturing plants, qualified manpower, and constant research to provide excellent, durable, and affordable products. This company’s main values include corporate and social responsibility, as well as customer satisfaction, which means that its solutions help improve not only the company’s efficiency but also the performance of its clients all over the world.
Company Strategy
The corporate strategy of Gala Precision Engineering is to enhance the manufacturing capacity and diversify the product portfolio in precision components, including high-tensile fasteners and many types of springs. The firm wants to expand its supply chain presence globally, hence the plan to open a new facility in Tamil Nadu that will focus on areas such as the automotive and renewable energy industries. Also, Gala ensures value addition and modernization of products to fit ever-changing OEM requirements in their operations globally, which enhances the company’s competitiveness and bond with customers.
Details on IPO Date and Price Band
| IPO Open Date: | September 2, 2024 |
| IPO Close Date: | September 4, 2024 |
| Face Value: | INR 10 Per Equity Share |
| IPO Price Band: | INR 503 to INR 529 Per Share |
| Issue Size: | Approx INR 167.93 Crores (3,174,416 Equity Shares) |
| Fresh Issue: | Approx INR 135.34 Crores (2,558,416 Equity Shares) |
| Offer for Sale: | Approx 616,000 Equity Shares |
| Issue Type: | Book Built Issue |
| IPO Listing: | BSE & NSE |
| Retail Quota: | 35% |
| QIB Quota: | 50% |
| NII Quota: | 15% |
IPO Objective:
The IPO utilization plans of Gala Precision Engineering include the establishment of a new manufacturing facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu, to manufacture high-tensile fasteners and hex bolts, meeting the capital expenditure for acquiring equipment, plant and machinery at Wada, Palghar, Maharashtra; repayment of certain borrowings in full or in part; and other corporate purposes. These strategies are to improve the current production capacity and to build a better capital structure for the future of the company.
Market Lot Information on Gala Precision Engineering IPO
The lot size and corresponding amounts are as follows:
- Retail Minimum: 1 lot (28 shares) for INR 14,812
- Retail Maximum: 13 lots (364 shares) for INR 192,556
- S-HNI Minimum: 14 lots (392 shares) for INR 207,368
- B-HNI Minimum: 68 lots (1,904) for INR 1,007,216
Allotment Dates for Gala Precision Engineering IPO
Gala Precision Engineering IPO open date is September 2 and the IPO close date is September 4. The IPO allotment date is September 5 and the listing date is September 9.
| IPO Open Date: | September 2, 2024 |
| IPO Close Date: | September 4, 2024 |
| Basis of Allotment: | September 5, 2024 |
| Refunds: | September 6, 2024 |
| Credit to Demat Account: | September 6, 2024 |
| IPO Listing Date: | September 9, 2024 |
Application Process of IPO
The IPO can be accessed by submitting an application through the online ASBA (Application Supported by Blocked Amount) facility from the bank through ‘Internet banking’, going to ‘Invest’, and applying for the Gala Precision Engineering. On the other hand, the IPO forms are also available for download on the BSE & NSE websites which the candidates can fill and submit.
Financial Analysis of the Company
Financials in INR Crores.
| Year | Revenue | Expense | Profit After Tax | Assets |
| 2022 | 147.96 | 136.74 | 6.63 | 145.62 |
| 2023 | 167.08 | 149.38 | 24.21 | 170.39 |
| 2024 | 204.38 | 176.79 | 22.33 | 188.69 |
Over the past three years, the company has demonstrated steady revenue growth, increasing from INR 147.96 crores in 2022 to INR 204.38 crores in 2024. Expenses have also risen, from INR 136.74 crores in 2022 to INR 176.79 crores in 2024, reflecting increased operational activities. Despite rising expenses, profit after tax peaked in 2023 at INR 24.21 crores but decreased slightly to INR 22.33 crores in 2024. The company’s assets have grown from INR 145.62 crores in 2022 to INR 188.69 crores in 2024, indicating robust financial health and expansion capacity.
IPO Valuation (FY 2024)
The company’s EPS stands at a value of INR 22.09 with a Return on Net Worth (RoNW) of 21.38% and a Net Asset Value (NAV) per share of INR 103.30 in the financial year 2024. The IPO price band ranges from INR 503 to INR 529 with the issue of 3,174,416 equity shares to raise 167.93 crores and a face value of INR 10 per equity share to fund a new manufacturing facility, purchase equipment, repay borrowings, and cover general corporate purposes to strengthen Gala Precision Engineering’s growth and financial position.
| Earnings Per Share (EPS): | INR 22.09 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 21.38% |
| Net Asset Value (NAV): | INR 103.30 |
Competitor Analysis
Here is the competitor of Gala Precession Engineering:
Harsha Engineers International Limited
Harsha Engineers International Limited is a company that specializes in manufacturing precision-bearing cages and stamped products targeting several sectors, including automobiles, aircraft, and machinery, among others. As a leading innovator of quality products, the company ensures that it offers only high-performance solutions to its clients across the world. Hence, backed by high technology, professional manpower, and sustainability objectives, Harsha Engineers is further strengthening its market position. The company’s scope of achieving great operational efficiency and producing better products would help create an overall growth of the clients of the company all over the world.
SKF India Limited
SKF India Limited is the largest supplier of bearings, seals, lubrication systems, and services to automotive, aircraft manufacturers, and general industries. This company operates within the principles of innovation and dependability to offer its customers products and services of superior quality to improve productivity and minimize maintenance expenses. The development strategies implemented at SKF India to carry on its operations entail the right usage of modern technology coupled with a qualified workforce to address the market needs. Dedicated to sustainability and quality, the software firm impacts growth and consolidates its market position in India and internationally.
Sundram Fasteners Limited
Sundram Fasteners is an established manufacturer of automotive and industrial fasteners, engine parts, and precision products. They supply companies such as the automotive, aerospace, and construction industries with more focus on innovation, quality, and customer satisfaction. Sundram Fasteners has strong manufacturing operations and an international footprint and by deploying highly developed technology and professional performances, it can promise dependable and productive fasteners. As a responsible and growing business, the company continues to improve its products and services, appearance, and global presence.
Rolex Rings Limited
Rolex Rings Limited is one of the leading global suppliers of forged and machined components for automobiles, machinery, wind energy, and general industrial purposes. It aims to provide innovation and quality to meet competence and deliver enhanced products to its global clientele by making effective use of advanced manufacturing technologies and a skilled workforce. Operating with sustainability and improvement in mind, Rolex Rings seeks to capture more of the market share and improve its operations without compromising customer satisfaction rates.
Sterling Tools Limited
Sterling Tools Limited is one of the fastest-growing companies specializing in industrial fasteners and precision-turned component suppliers for the automotive, aerospace, and engineering industries. Being an innovative and quality-conscious enterprise, it offers dependable offerings that are compliant with industrial benchmarks. Sterling Tools has state-of-the-art manufacturing facilities, and the quality policy will increase operational efficiency as well as the satisfaction of consumers. Thus, the technological development and focus on sustainable solutions help the company grow and enhance its position in the global market.
Ratnaveer Precision Engineering Limited
Ratnaveer Precision Engineering Limited is well-known for establishing itself as a leading processed manufacturer and supplier of precision-engineered components and Sub-assemblies across automobile, Aerospace, and Industrial segments. The business strives to offer consumers its products that are not only safe and efficient but also created using the newest technologies. Sharing business values, such as high accuracy and customer focus, Ratnaveer Precision Engineering seeks to improve performance and increase its presence in the market based on innovations and eco-friendliness.
Offer Lead Manager
Pl Capital Markets Private Limited
PI Capital Markets Private Limited is a financial service provider in investment banking, capital markets, and advisory services. The company specializes in equity/debt financing, acquisitions/mergers, in addition to financial planning and analysis. PI Capital Markets’ priorities lie in providing tailored financial services and taking advantage of its market knowledge to help its clients meet and exceed their financial objectives while strengthening their market presence. Intensely focusing on the principles of the best quality and client-oriented approach, the firm creates value and fosters strategic development for multiple and various customers.
Conclusion
With its impending initial public offering (IPO), Gala Precision Engineering will provide investors with a chance to interact with a business that specializes in precision components for a range of sectors. The firm wants to generate INR 167.93 crores through the initial public offering (IPO), which is scheduled for September 2-4, 2024, to fund its ambitions for growth and expansion, which include building a new manufacturing facility. This initial public offering (IPO), which combines an issue of new stock with an offer for sale, demonstrates Gala’s strategic focus on growing its market share and operational capability to position itself for sustained success in the cutthroat engineering industry.
