Gala Precision Engineering IPO Fully Booked Within Minutes; Receives 2.15 Times Subscription On Day 1

Gala Precision Engineering IPO: According to data from the NSE, the IPO received bids for 47,77,444 shares against 22,23,830 shares on offer, reflecting a subscription rate of 2.15 times

Gala Precision Engineering IPO: The IPO, which opened on September 2, will conclude on September 4. Gala Precision Engineering has set a price band of Rs 503-529 per share for its Rs 168-crore IPO.

Source : Gala Precision Engineering

Gala Precision Engineering IPO: The initial public offering (IPO) of Gala Precision Engineering Ltd was fully subscribed within minutes of opening for bidding on Monday. According to data from the National Stock Exchange (NSE), the IPO received bids for 47,77,444 shares against 22,23,830 shares on offer, reflecting a subscription rate of 2.15 times as of 11:21 AM.

The portion reserved for Retail Individual Investors (RIIs) was particularly well-received, garnering a subscription rate of 3.15 times, while the quota for non-institutional investors was subscribed 2.54 times.

Gala Precision Engineering shares were trading at over a 45 per cent premium in the grey market, an unofficial and unregulated platform where shares are traded before they are officially listed.

The IPO, which opened on September 2, will conclude on September 4. Gala Precision Engineering has set a price band of Rs 503-529 per share for its Rs 168-crore IPO.

The offering comprises a fresh issue of 25.58 lakh equity shares, raising Rs 135.34 crore, and an offer for sale (OFS) of 6.16 lakh equity shares worth Rs 32.58 crore, which are being sold by promoter group entities and individual shareholders. At the upper end of the price band, the total transaction size amounts to Rs 168 crore.

The proceeds from the fresh issue will be utilised for several purposes, including the establishment of a new manufacturing facility for high-tensile fasteners and hex bolts at Vallam-Vadagal, SIPCOT, Sriperumbudur in Tamil Nadu, the purchase of equipment and machinery at Wada, Palghar in Maharashtra, debt repayment, and other general corporate needs.

Gala Precision Engineering is a leading manufacturer of precision components, specialising in technical springs like disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). The company's products are supplied to original equipment manufacturers (OEMs), Tier 1 suppliers, and channel partners, serving sectors such as renewable energy, industrial equipment, mobility, and general engineering.

PL Capital Markets Pvt Ltd is acting as the sole book-running lead manager for the issue. The equity shares of Gala Precision Engineering Ltd are set to be listed on both the BSE and NSE.