Gala Precision Engineering Ltd made a bumper debut in the stock market on Monday with a premium of almost 42 per cent against the issue price. The company’s shares started trading at Rs 750 on the BSE, climbing 41.77 per cent against the issue price of Rs 529.
On NSE, the stock debuted at Rs 721.10, gaining 36.31 per cent over the issue price. The company’s market valuation soared to Rs 975.53 crore. As of 12:18 PM, the stock of the company further jumped to Rs 769.95, marking an increase of more than 2.5 per cent.
The initial public offering (IPO) of the firm received an overwhelming response from investors and was subscribed 201.44 times. The issue was priced in the range of Rs 503-529 per share. It comprised a fresh issue of 25.58 lakh shares worth Rs 135.34 crore and an offer-for-sale (OFS) of 6.16 lakh equity shares coming up to Rs 32.58 crore, by promoter group entities and individual shareholders.
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Gala Precision Engineering deals in manufacturing precision components and specialises in technical springs such as disc and strip strings (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS).
The firm intends to utilise the funds raised from the issue towards setting up a new manufacturing facility for high-tensile fasteners and hex bolts at Vallam-Vadagal, SIPCOT, Sriperumbudur in Tamil Nadu, and purchase equipment and machinery at Wada, Palghar in Maharashtra. The remaining funds would be set aside towards debt repayment and to cater to other general corporate needs.
The company supplies products to original equipment manufacturers (OEMs), channel partners, and Tier I suppliers. It caters to players in sectors such as industrial equipment, mobility, renewable energy, and general engineering. The firm conducted the maiden issue from September 2-4 and PL Capital Markets Pvt Ltd acted as the sole book-running lead manager for it.