Gala Precision Engineering IPO

Last Updated: 05 September 2024 3:38 PM by 5Paisa

Last Updated: 4th September 2024, 6:15 PM by 5paisa

Gala Precision Engineering IPO is set to open on 02 September 2024 and will close on 04 September 2024. The company specializes in manufacturing precision components, including disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). 

The IPO includes a fresh issue of 25,58,416 shares aggregating up to ₹135.34 Cr and it also includes an offer for sale of 6,16,000 shares aggregating up to ₹32.59 Cr. The price range is ₹503 to ₹529 per share and the lot size is 28 shares. 

The allotment is scheduled to be finalized on 05 September 2024. It will go public on BSE and NSE, with a tentative listing date of 09 September 2024.

Pl Capital Markets Pvt Ltd is the book-running lead manager, while Link Intime India Pvt Ltd is the registrar. 

1. Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts.
2. Funding capital expenditure requirements towards purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra.
3. Repayment/ prepayment, in full or part, of certain borrowings.
4. General corporate purposes.
 

Incorporated in February 2009, Gala Precision Engineering Limited specializes in manufacturing precision components, including disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). These products are primarily supplied to original equipment manufacturers (OEMs) across various sectors such as electrical, off-highway equipment, infrastructure, general engineering, and mobility segments like automotive and railway.

Gala Precision Engineering  has established itself as a key player in the global supply chain for OEMs, supplying technical springs and high-tensile fasteners to customers in numerous countries, including Germany, Denmark, China, Italy, Brazil, the USA, Sweden, and Switzerland. The company's business is divided into two main divisions: the Springs Technology Division, which manufactures DSS, including Wedge Lock Washers (WLW) and CSS, and the SFS division, which produces anchor bolts, studs, and nuts.

The company operates two manufacturing facilities in Wada District, Palghar, Maharashtra, equipped with the capabilities to design, develop, and manufacture a diverse product portfolio. In addition, Gala Precision Engineering  is setting up a new manufacturing facility in Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu, aimed at expanding the product range with a focus on high-tensile fasteners, including bolts.

As of March 30, 2024, the company serves more than 175 customers across 25-plus countries. The workforce, as of June 30, 2024, comprises 294 permanent employees and 390 contract employees. The permanent staff includes 182 manufacturing workers, 19 employees for stores and logistics, 19 for quality assurance, 14 for tool room development and maintenance, and 22 for human resources and administration.

Peers

● Harsha Engineers International Ltd
● SKF India Ltd 
● Sundram Fasteners Ltd 
● Rolex Rings Ltd 
● Sterling Tools Ltd 
● Ratnaveer Precision Engineering Ltd