Gala Precision Engineering Sets IPO Price Band At Rs 503–529 Apiece
The company will open its IPO for subscription on Sept. 2, which will continue till Sept. 4.
The initial public offering of Gala Precision Engineering Ltd. will open for subscription next week with a price band of Rs 503-529 per share. The company aims to raise over Rs 167.92 crore at the upper end of the price band.
The IPO of the precision components company consists of a fresh issue portion worth Rs 135.3 crore and an offer for sale of 6.16 crore equity shares worth Rs 32.6 crore, according to the red herring prospectus. Taramati V Gala, Kirit Vishanji Gala and Nayna Gala will be the promoters selling shareholders for the upcoming issue.
The company will open its IPO for subscription on Sept. 2, which will continue till Sept. 4. The minimum lot size for bidding will be 28 shares, with further bids to be made in multiples, according to the company's price band advertisement on Tuesday.
PL Capital Markets Pvt. is the sole book-running lead manager for the public issue. Post the offering, the shares of Gala Precision will list on BSE and the National Stock Exchange.
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The company will use about Rs 37 crore for setting up a new facility in Tamil Nadu, and about Rs 11 crore will be used for funding capital expenditure requirements. About Rs 30 crore from the process will be spent on repayment of debt, it said in its prospectus.
The company is a precision component manufacturer of technical springs like disc and strip springs, including wedge lock washers, coil and spiral springs and special fastening solutions. It has supplied technical springs and high-tensile fasteners to customers in countries including Germany, Denmark, China, Italy, Brazil, US, Sweden, and Switzerland.
As of March 30, 2024, the company had more than 175 customers in 25 plus countries such as Germany, Denmark, China, Italy, Brazil, USA, Sweden and Switzerland.
