Gala Precision Engineering IPO Price: ₹503 to ₹529 per share
IPO Dates: 2 September 2024 – 4 September 2024
Company Overview
Gala Precision Engineering Limited, incorporated in February 2009, is a prominent manufacturer of precision components, including disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). The company serves original equipment manufacturers (OEMs), Tier 1 players, and channel partners across various sectors such as electrical, off-highway equipment, infrastructure, and general engineering, with a strong presence in mobility segments like automotive and railway.
Global Reach and Market Presence
Gala Precision Engineering has established itself as a crucial player in the global supply chain for OEMs, with a significant international footprint. The company exports its products to over 25 countries, including Germany, Denmark, China, Italy, Brazil, the USA, Sweden, and Switzerland. As of March 31, 2024, exports contributed 37.53% to the company’s total sales. Gala holds a ~2% share of the global DSS & WLW market and is a key disc springs manufacturer in India, with a ~10% market share domestically. In the renewable industry, Gala has a commanding ~70% share of the Indian market and ~3% of the global market.
Manufacturing Capabilities
Gala operates from two manufacturing facilities in Wada District, Palghar, Maharashtra, certified by ISO 9001:2015 and IATF16949 standards. These facilities have an annual production capacity of 246.46 million units of springs and washers and 0.42 million fasteners. The company is expanding its production capabilities by establishing a new manufacturing facility in SIPCOT, Sriperumbudur, Tamil Nadu, dedicated to producing high-tensile fasteners and bolts. This expansion reflects Gala’s commitment to enhancing its product portfolio and meeting the growing demand for precision components.
Product Offerings and Innovation
The company’s Springs Technology Division focuses on manufacturing DSS, including Wedge Lock Washers (WLW) and CSS. The SFS division produces anchor bolts, studs, and nuts. Over the last five years, Gala has developed more than 200 products in the technical springs and high-tensile fasteners categories, delivering over 750 stock-keeping units to meet diverse customer requirements. The company emphasizes lean manufacturing and automation to improve productivity and reduce errors, ensuring high-quality output that meets global standards like German DIN.
Customer Relationships and Competitive Strengths
Gala Precision Engineering boasts long-standing relationships with its customers, with partnerships ranging from 4 to over 15 years. The company’s diverse product portfolio and well-equipped manufacturing facilities offer scale, flexibility, and comprehensive solutions to domestic and international clients. With an experienced management team and a skilled workforce, Gala has maintained a consistent track record of financial growth and operational efficiency, characterized by high repeat business.
Bidding Starts In
Gala Precision Engineering IPO Specifics:
| IPO Date | September 2, 2024 to September 4, 2024 |
| Listing Date | Monday, September 9, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹503 to ₹529 per share |
| Lot Size | 28 Shares |
| Total Issue Size | 3,174,416 shares (aggregating up to ₹167.93 Cr) |
| Fresh Issue | 2,558,416 shares (aggregating up to ₹135.34 Cr) |
| Offer For Sale | 616,000 shares (aggregating up to ₹32.59 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 10,111,584 |
| Share holding post issue | 12,670,000 |
Gala Precision Engineering IPO Timetable (Important Dates)
| IPO Open Date | Monday, September 2, 2024 |
| IPO Close Date | Wednesday, September 4, 2024 |
| Basis of Allotment | Thursday, September 5, 2024 |
| Initiation of Refunds | Friday, September 6, 2024 |
| Credit of Shares to Demat | Friday, September 6, 2024 |
| Listing Date | Monday, September 9, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 4, 2024 |
Gala Precision Engineering IPO Lot Size
Bidders have the opportunity to bid for a minimum of 28 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 28 | ₹14,812 |
| Retail (Max) | 13 | 364 | ₹1,92,556 |
| S-HNI (Min) | 14 | 392 | ₹2,07,368 |
| S-HNI (Max) | 67 | 1,876 | ₹9,92,404 |
| B-HNI (Min) | 68 | 1,904 | ₹10,07,216 |
Gala Precision Engineering IPO Reservation
| QIB Shares Offered | Not more than 50% of the Net offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Gala Precision Engineering Limited IPO Financial Information
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 |
|---|---|---|---|
| Assets | 145.62 | 170.39 | 188.69 |
| Revenue | 147.96 | 167.08 | 204.38 |
| Profit After Tax | 6.63 | 24.21 | 22.33 |
| Net Worth | 59.32 | 83.66 | 104.45 |
| Reserves & Surplus | 56.79 | 81.13 | 94.67 |
| Total Borrowing | 56.89 | 58.6 | 55.03 |
Key Performance Indicator – Gala Precision Engineering IPO
| KPI | Values |
|---|---|
| Market Cap | ₹ 670.24 Cr. |
| ROE | 23.59% |
| ROCE | 19.91% |
| EPS | ₹22.09 |
| P/E (x) | 23.95 |
| Debt/ Equity | 0.53 |
| RoNW | 21.38% |
| P/BV | 5.12 |
Objects of the Issue:
The company plans to use the Net Proceeds for the following purposes:
- Establishing a new facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu, dedicated to manufacturing high-tensile fasteners and hex bolts.
- Funding capital expenditures for the purchase of equipment, plant, and machinery at Wada, Palghar, Maharashtra.
- Repaying or prepaying, either fully or partially, certain borrowings taken by the company.
- Addressing general corporate purposes.
Prospectus Links:
Prospectus: Official documents that provide detailed information about the IPO and the company.
