Gala Precision Ends At 49% Premium Over IPO Price

Shares of Gala Precision Engineering Ltd. ended on the BSE at Rs 787.4 apiece, a premium of 48.8% over its issue price of Rs 529 per share, on Monday. On the National Stock Exchange, the stock closed at Rs 757.1 per share, marking a premium of 43.1%.

Gala Precision's stock is listed on the BSE at a premium of 41.8% and on the NSE, the stock debuted at a premium of 36.3%.

The precision component manufacturer's Rs 167.93-crore initial public offering has become the second biggest subscription so far in 2024. The company secured bids of 201.41 times on its final day, led by non-institutional investors and institutional investors.

It trailed Vibhor Steel Tubes Ltd.'s IPO, which hit the primary market in February and was subscribed 298.86 times.

The public offering comprised a fresh issue of 25.5 lakh shares, amounting to Rs 135 crore, and an offer for sale of 6.16 lakh shares, aggregating to Rs 32.6 crore.

The company will use the proceeds to set up a new facility in Tamil Nadu for manufacturing high-tensile fasteners and hex bolts. The funds will also be used for capital-expenditure requirements towards the purchase of equipment, plants, and machinery in Maharashtra. The repayment or prepayment borrowings will also be undertaken from the proceeds.

Incorporated in 2009, the company is a precision component manufacturer specialising in technical springs, including disc and strip springs with wedge lock washers, coil and spiral springs, and special fastening solutions.

Their products are used in sectors like renewable energy, including wind turbines and hydropower plants. The products are also used in various industrial sectors, such as electrical and off-highway equipment, infrastructure, general engineering and mobility segments.

The company operates from two manufacturing facilities located in Wada, Palghar, Maharashtra.