Mumbai-based Gala Precision Engineering – a precision component manufacturer of technical springs – has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
Gala Precision Engineering IPO has a face value of INR 10 and consists of a fresh issue of equity shares up to 25.58 lakh and an offer for sale up to 6.16 lakh equity shares by the Promoter Group and Individual Selling Shareholders. The company had filed its IPO papers with SEBI on February 14, 2024. The offer includes a reservation for subscription by eligible employees.
Gala Precision Engineering IPO: Retail to Get 35% Allocation
Gala Precision Engineering IPO is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 35% of the offer shall be available for allocation to retail individual bidders.
The proceeds from the fresh issue, to the extent of INR 37 crore for setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts; INR 11.07 crore for funding capital expenditure requirements towards the purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra; INR 30 crore for repayment/ prepayment, in full or part, of certain borrowings availed by the Company; and General Corporate Purposes.
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Experienced Promoters
Led by Kirit Vishanji Gala, Gala Precision is a technology-driven company with a strong focus on quality, design tool development, and application engineering. It has more than 3 decades of experience in developing customized products to meet the evolving needs of its customers and commands an approximation of 15% market share in the domestic SFS market for wind turbines.
Gala Precision’s business primarily comprises of springs technology division, which manufactures DSS including wedge lock washers (WLW), coil & spiral springs (CSS) and special fastening solution (SFS) which manufactures anchor bolts, studs, and nuts.
Gala Precision Engineering IPO: Two Plants and Growing
The company operates its business from its two manufacturing facilities located in Wada, Palghar, Maharashtra. Further, it is also setting up a new manufacturing facility in Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for developing various high-tensile fasteners to add to its existing product portfolio and new products.
PL Capital Markets Private Limited is the sole book-running lead manager for Gala Precision Engineering IPO, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.
