Gala Precision Engineering IPO: A Complete Overview
The Gala Precision Engineering IPO is set to open on September 2, 2024, and will close on September 4, 2024. The IPO aims to raise around ₹167.93 crores, consisting of a fresh issue of ₹135.34 crores and an offer for sale of up to 616,000 equity shares. This IPO will be listed on both the NSE and BSE, with the IPO listing date scheduled for September 9, 2024.
Key Details of Gala Precision Engineering IPO
| Details | Information |
|---|---|
| IPO Open Date | September 2, 2024 |
| IPO Close Date | September 4, 2024 |
| IPO Price Band | ₹503 to ₹529 per share |
| Face Value | ₹10 per equity share |
| Issue Size | Approx ₹167.93 crores |
| Fresh Issue | Approx ₹135.34 crores |
| Offer for Sale | Approx 616,000 equity shares |
| Retail Quota | 35% |
| QIB Quota | 50% |
| NII Quota | 15% |
| Listing On | NSE and BSE |
| Basis of Allotment | September 5, 2024 |
| Refunds | September 6, 2024 |
| Credit to Demat Account | September 6, 2024 |
| Listing Date | September 9, 2024 |
About Gala Precision Engineering
Gala Precision Engineering is a renowned name in the high-precision components industry, with over 30 years of experience. The company specializes in high tensile fasteners, coil & spiral springs, disc & strip springs, and wedge lock washers. With a global customer base across 25+ countries and a strong focus on lean manufacturing and automation, Gala Precision is set to expand its production capabilities with a new facility in Tamil Nadu dedicated to special fastening solutions.
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Financial Performance and Valuation
The company has shown significant growth in its financial performance:
| Period Ended | Revenue (₹ Crores) | Expense (₹ Crores) | Profit After Tax (₹ Crores) | Assets (₹ Crores) |
|---|---|---|---|---|
| 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 |
The company’s profit has increased from a loss of ₹24.21 crores in 2023 to a profit of ₹22.33 crores in 2024, indicating a strong recovery and growth trend. This improvement makes the Gala Precision Engineering IPO an attractive investment for both short-term and long-term investors.
IPO Valuation Metrics
| KPI | Value |
|---|---|
| ROE | 23.59% |
| ROCE | 19.91% |
| EBITDA Margin | 19.86% |
| PAT Margin | 10.93% |
| Debt to Equity Ratio | 0.53 |
| Earnings Per Share (EPS) | ₹22.09 (Basic) |
| Return on Net Worth (RoNW) | 21.38% |
| Net Asset Value (NAV) | ₹103.30 |
These strong valuation metrics suggest that Gala Precision Engineering has a solid foundation and growth potential. Investors looking to apply for this IPO should consider the company’s improved financial performance and its competitive edge in the market.
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Gala Precision Engineering IPO Market Lot and Application Details
The minimum market lot for the Gala Precision Engineering IPO is 28 shares, with a minimum application amount of ₹14,812. Retail investors can apply for up to 13 lots, amounting to 364 shares or ₹192,556.
| Application Type | Lot Size | Shares | Amount (₹) |
|---|---|---|---|
| Retail Minimum | 1 | 28 | 14,812 |
| Retail Maximum | 13 | 364 | 192,556 |
| S-HNI Minimum | 14 | 392 | 207,368 |
| B-HNI Minimum | 68 | 1,904 | 1,007,216 |
How to Apply for Gala Precision Engineering IPO
Investors can apply for the Gala Precision Engineering IPO via ASBA online through their bank accounts or UPI through stock brokers. Offline applications are also available through stock brokers by filling out the necessary forms. For detailed guidance on IPO applications, visit our IPO Forms page.
Objects of the Issue
The funds raised from the Gala Precision Engineering IPO will be used for:
- Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts.
- Funding capital expenditure for the purchase of equipment, plant, and machinery at Wada, Palghar, Maharashtra.
- Repayment or prepayment, in full or part, of certain borrowings.
- General corporate purposes.
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Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income (₹ Crores) |
|---|---|---|---|---|---|
| Harsha Engineers International Ltd | 12.24 | 44.33 | 9.48 | 129.09 | 1421.79 |
| SKF India Ltd | 111.6 | 48.50 | 20.57 | 542.63 | 4664.14 |
| Sundram Fasteners Ltd | 24.83 | 54.49 | 15.37 | 162.81 | 5720.47 |
| Rolex Rings Ltd | 57.30 | 40.83 | 17.37 | 329.81 | 1236.82 |
| Sterling Tools Ltd | 15.37 | 24.70 | 12.38 | 124.11 | 938.51 |
| Ratnaveer Precision Engineering Ltd | 7.61 | 24.69 | 12.32 | 51.78 | 602.40 |
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FAQ on Gala Precision Engineering IPO
1. What is the Gala Precision Engineering IPO?
The Gala Precision Engineering IPO is a main-board IPO set to raise ₹167.93 crores through a combination of fresh issues and offers for sale. The IPO will be listed on BSE and NSE.
2. When will the Gala Precision Engineering IPO open and close?
The IPO will open for subscription on September 2, 2024, and close on September 4, 2024.
3. How can I apply for the Gala Precision Engineering IPO?
You can apply online via ASBA through your bank account or UPI through your stock broker. Offline applications are also possible through stock brokers.
4. What is the price band for the Gala Precision Engineering IPO?
The price band is set between ₹503 to ₹529 per share.
5. When will the allotment of shares be finalized?
The allotment date is September 5, 2024.
6. When is the Gala Precision Engineering IPO listing date?
The IPO is expected to be listed on September 9, 2024 on the BSE and NSE.
7. What is the market lot for retail investors?
The minimum lot size is 28 shares, and retail investors can apply for up to 13 lots.
For the latest updates on IPO subscription status, visit our IPO Subscription page.
By keeping this information handy, potential investors can make informed decisions about participating in the Gala Precision Engineering IPO. Be sure to keep an eye on the Gala Precision Engineering IPO GMP Today to understand market sentiments.
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