MUMBAI, 27 AUGUST, 2024 (GPN): Gala Precision Engineering Limited is a precision component manufacturer of technical springs like disc & strip springs (“DSS”); coil & spiral springs (“CSS”) and special fastening solution (“SFS”) has fixed the price band in the range of Rs. 503 to Rs. 529 per share, the initial public offering (IPO) of Gala Precision Engineering opens for subscription on September 2. The anchor bidding will start on August 30, and the issue will close on September 4, 2024.

Investors can place a bid for a minimum of 28 equity shares in one lot and in multiples thereafter.
The IPO includes a fresh issue of 0.26 crore shares aggregating to Rs. 135.34 crore and an offer for sale component of 0.06 crore shares aggregating to Rs. 32.59 crore.

At the upper end of the price band, the fresh issue is valued at Rs. 134 crore, the OFS at Rs. 32.59 crore, bringing the total issue size to Rs. 168 crore. The estimated market capitalisation is around Rs. 670 crore.

Gala Precision Engineering 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).

Its 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.

Gala Precision Engineering Limited: Mr. Kirit Vishanji Gala, CMD; Mr. Balkishan Jalan, Executive Director; Mr. Satish Kotwani, Whole-time Director; Mr. Srinivasan Giridhar, CFO, Gala Precision Engineering Limited interacted with the media.

The company earned a little more than 80% revenue from its springs technology business, 19.3% from fastening solutions, and half a percent from the surface engineering solutions segment.

For fiscal 2023–24, the company’s revenue from operations increased by 22.41%, reaching to Rs. 2025.45 million (Rs. 202.5 crore) in Fiscal 2024 from Rs. 1654.65 million (Rs. 165.46 crore) in Fiscal 2023, driven incremental sales of DSS due to the addition of new customers and increased demand from renewable energy, railways and industrial sectors; as well as incremental sales of CSS, owing to increased demand from the automobile industry and the commencement of supplies to the railways. Profit after tax for the fiscal 2024 stood at Rs. 223.32 million (Rs. 22.53 crore), down just 0.14% from Rs. 22.56 crore in the previous financial year despite a healthy topline and operating numbers.EBITDA (earnings before interest, tax, depreciation and amortisation) in FY24 surged 41.8% to Rs. 38.8 crore with margin rising 260 basis points to 19.1%, compared to FY23.

Pl Capital Markets is the sole book-running lead manager to the Gala Precision Engineering IPO, while Link Intime India is the registrar.

The share allotment for the Gala Precision Engineering IPO is expected to be finalised on September 5, while the company will list on the exchanges with tentative listing date fixed as September 9, 2024.

RHP:

https://www.plindia.com/offerdoc/gala%20precision%20engineering%20ltd-red%20herring%20prospectus.pdf