Gala Precision Engineering Limited is a manufacturer of precision components such as disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). The company supplies these products to original equipment manufacturers (OEMs).
The company’s products are used in sectors such as electrical, off-highway equipment, infrastructure, and general engineering, as well as in mobility segments such as automotive and railway.
The company has supplied its technical springs and high tensile fasteners to customers in several countries including Germany, Denmark, China, Italy, Brazil, USA, Sweden, and Switzerland, making it a crucial link in the global supply chain for OEMs.
The company’s business primarily comprises of two divisions:
- The Springs Technology Division manufactures DSS, including Wedge Lock Washers (WLW) and CSS,
- SFS, producing anchor bolts, studs, and nuts.
As of March 30, 2024, the company has more than 175 customers in 25 plus countries such as Germany, Denmark, China, Italy, Brazil, USA, Sweden and Switzerland.
The company has two manufacturing facilities in Wada District, Palghar, Maharashtra, with capabilities to design, develop, and manufacture a diverse product portfolio. Additionally, a new manufacturing facility is being set up in Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu, focusing on developing high-tensile fasteners to expand the product portfolio with new products like bolts.
As of June 30, 2024, the company has 294 permanent employees and 390 contract employees. The permanent workforce includes 182 manufacturing workers, 19 employees for stores and logistics, 19 employees for quality assurance, 14 employees for tool room development and maintenance, and 22 employees for human resources and administration.
Gala Precision Engineering IPO – Details
| IPO Opening Date | 02 September 2024 |
| IPO Closing Date | 04 September 2024 |
| Issue Type | Book Built Issue IPO |
| Issue Size | Total Issue Size: 31,74,416 Shares Worth ₹167.93 Crore Fresh Issue: 25,58,416 Shares Worth ₹135.34 Crore Offer For Sale: 6.16,000 Shares Worth ₹32.59 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹503 – ₹529 per share |
| Market Lot | 28 Shares |
| Min Order | 28 Shares (1 Lot) |
| Listing At | BSE, NSE |
| Register | Link Intime India Private Ltd |
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Gala Precision Engineering IPO – Date Schedule
| IPO Open Date | 02 September 2024 |
| IPO Close Date | 04 September 2024 |
| Basis of Allotment | 05 September 2024 |
| Initiation of Refund | 06 September 2024 |
| Credit of Shares to Demat Account | 06 September 2024 |
| IPO Listing Date | 09 September 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 04, 2024 |
Gala Precision Engineering IPO – Lots Size & Price
| 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 |
Competitive Strengths
- The company is a well-established manufacturer of precision engineering solutions with diverse product portfolio for multiple user industries.
- The company has a long-standing relationships of over 15 years with both Indian and global OEM and Tier 1 customers.
- The company has a well equipped manufacturing facilities along with in-house design and other capabilities which offer scale, flexibility, and comprehensive solutions.
- The company has an experienced management team supported by large, diverse, and skilled work force.
- The company has a track record from incorporation of consistent financial growth and performance characterized by operational efficiency and high repeat business.
- The Company is certified as a great workplace in the category of “Mid-size organisations” by the Great Place to Work Institute, India. The certificate is valid from November 2023 to November 2024.
Company Promoters
- Kirit Vishanji Gala
- Smeet Kirit Gala
Company Financials
| Particulars | Total Revenue | Total Expense | Profit After Tax | Total Borrowing |
|---|---|---|---|---|
| 31 March 2022 | 147.96 | 136.73 | 6.63 | 56.89 |
| 31 March 2023 | 167.08 | 149.38 | 24.21 | 58.60 |
| 31 March 2024 | 204.37 | 176.79 | 22.33 | 55.03 |
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 23.59% |
| ROCE | 19.91% |
| Debt/Equity | 0.53 |
| RoNW | 21.38% |
| P/BV | 5.12 |
| PAT Margin (%) | 11.89 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 22.09 | 17.63 |
| P/E (x) | 23.95 | 30.01 |
Object Of The Issue
- Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts;
- Funding capital expenditure requirements towards purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra;
- Repayment/ prepayment, in full or part, of certain borrowings availed by the company; and
- General corporate purposes.
Gala Precision Engineering IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | Harsha Engineers International Limited | 44.33 |
| 2 | 10 | SKF India Limited | 48.50 |
| 3 | 1 | Sundram Fasteners Limited | 54.49 |
| 4 | 10 | Rolex Rings Limited | 40.83 |
| 5 | 2 | Sterling Tools Limited | 24.70 |
| 6 | 10 | Ratnaveer Precision Engineering Limited | 24.69 |
Gala Precision Engineering IPO Promoter Holding
| Pre Issue Share Holding | 74.56% |
| Post Issue Share Holding | 55.44% |
Gala Precision Engineering IPO Prospectus
Company Contact Information
| Gala Precision Engineering Limited A-801, 8th Floor Thane One DIL Complex, Ghodbunder Road Majiwade, Thane (West)-400610 Phone: +91 22-6930 9224 Email: investor.relations@galagroup.com Website: https://www.galagroup.com/ |
Gala Precision Engineering IPO Registrar
| Link Intime India Private Ltd Phone: +91-22-4918 6270 Email: galaprecision.ipo@jmfl.com Website: https://linkintime.co.in/initial_offer/public-issues.html |
Gala Precision Engineering IPO Lead Manager(s)
| 1. PL Capital Markets Private Limited |
Gala Precision Engineering IPO FAQs
| What is Gala Precision Engineering IPO? Gala Precision Engineering IPO is a main-board IPO. The issue is priced at ₹503 to ₹529 per equity share. The IPO is to be listed on BSE & NSE. |
| When Gala Precision Engineering IPO will open? The IPO is to open on 02 September 2024 for QIB, NII, and Retail Investors. |
| What is Gala Precision Engineering IPO Investors Portion? The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%. |
| How to Apply the Gala Precision Engineering IPO? You can apply Gala Precision Engineering IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the Gala Precision Engineering IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “Gala Precision Engineering IPO”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the Gala Precision Engineering IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “Gala Precision Engineering IPO“. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the Gala Precision Engineering IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “Gala Precision Engineering IPO”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the Gala Precision Engineering IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “Gala Precision Engineering IPO”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is Gala Precision Engineering IPO Size? Gala Precision Engineering IPO size is ₹167.93 Crore. |
| What is Gala Precision Engineering IPO Price Band? Gala Precision Engineering IPO Price Band is ₹503 to ₹529. |
| What is Gala Precision Engineering IPO Minimum and Maximum Lot Size for retail? The minimum bid is 28 Shares with ₹14,812 amount while the maximum bid is 364 Shares with ₹1,92,556. |
| What is the Gala Precision Engineering IPO Allotment Date? Gala Precision Engineering IPO allotment date is 05 September 2024. |
| What is the Gala Precision Engineering IPO Listing Date? Gala Precision Engineering IPO listing date is 09 September 2024. The IPO is to be listed on BSE and NSE. |
