Gala Precision Engineering IPO update: Issue subscribed over 52x on Day 2

On August 30, the IPO had already secured Rs 50.3 crore from anchor investors.

Precision component maker Gala Precision Engineering's initial public offering (IPO) has received a robust demand from investors, entering into its second day of bidding on September 3.

The IPO was subscribed 52.21 times, with investors placing bids for 11.61 crore equity shares against the total offer size of 22.2 lakh, data from exchanges showed.

Non-institutional investors, or high net-worth individuals, were the biggest contributors, subscribing almost 132.93 times their allocated quota. Retail investors followed with subscriptions amounting to 44.21 times the reserved portion. The qualified institutional buyers (QIBs) portion was subscribed by 5.06 times, while the employees' portion saw a subscription of 117.89 times.

Follow our live blog for the latest market updates.

About The Issue

Gala Precision Engineering, specializing in precision components, has come out with a public offer worth Rs 167.9 crore through the book-building route. The IPO consists of fresh issue of 26 lakh shares totalling Rs 135.3 crore and an offer for sale (OFS) of 6 lakh shares amounting to Rs 32.6 crore.

The subscription window for Gala Precision Engineering IPO will close on September 4 and the allotment of shares is expected to be finalized on September 5.  The company is slated to list both the BSE and NSE on September 9.

Also read: How brokerages value Reliance Industries' business segments

The price band for the IPO has been set at Rs 503-529 per share. PL Capital Markets Pvt Ltd is acting as the book-running lead manager for the issue, with Link Intime India Pvt Ltd serving as the registrar.

Read more: Analysts advise caution as Nifty extends record rally to 13th session

On August 30, the IPO had already secured Rs 50.3 crore from anchor investors.

About The Company

Established in February 2009, Gala Precision Engineering manufactures disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). The company’s products are utilized by Original Equipment Manufacturers (OEMs) in sectors such as electrical, off-highway equipment, infrastructure, general engineering, automotive, and railways. Gala Precision supplies to markets including Germany, Denmark, China, Italy, Brazil, the USA, Sweden, and Switzerland.

For the financial year ending March 31, 2024, the company posted a 22 percent increase in revenue, reaching Rs 204 crore, though its profit after tax (PAT) declined by 8 percent to Rs 22 crore compared to the previous year.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.