Shares of Gala Precision Engineering staged a healthy stock market debut on September 9 after listing at Rs 721.10, a premium of 36.31 percent over the issue price of Rs 529 per share on the NSE.
Despite the bumper gains, the listing still missed grey market estimates where shares were trading at a premium of about 46 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.
The company's Rs 167.93 crore public offer was a combination of fresh issue of 25.58 lakh equity shares worth Rs 135.34 crore and offer for sale (OFS) of 6.16 lakh shares worth Rs 32.59 crore. The shares were sold at a price band of Rs 503 to Rs 529 apiece in the IPO.
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Its public offer also attracted strong enthusiasm from investors and was subscribed 201.41 times. Retail investors booked the category reserved for them 91.95 times while the non-institutional investors (NII) put bids that were 414.62 times the portion allotted. Qualified Institutional Buyers (QIBs) category was booked 232.54 times.
The company intends to use the proceeds from the public offer to establish a new facility, pay debt, fund capital expenditure requirements, and for general corporate purposes.
Gala Precision Engineering is a manufacturer of precision components, specializing in technical springs such as disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). Its products serve a wide range of industries, including renewable energy, automotive, railways, off-highway vehicles, electrical and power equipment, heavy machinery, commercial vehicles, industrial infrastructure, and passenger vehicles.
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