Gallard Steel Limited Makes Strong Debut with 48.73% Premium, Lists at ₹223.10 Against Exceptional Subscription

Gallard Steel Limited, a manufacturer of engineered steel castings including mild steel, SGCI, and low alloy castings producing ready-to-use components, assemblies, and subassemblies for Indian Railways, defence sector, power generation, and allied industries through ISO 9001:2015 certified foundry. After closing its IPO bidding between November 19-21, 2025, the company commenced trading with a premium of 48.73% opening at ₹223.10 and touched ₹234.25 (up 56.17%).

Gallard Steel Limited Listing Details

Gallard Steel launched its IPO at ₹150 per share with minimum investment of 2,000 shares costing ₹3,00,000. The IPO received exceptional response with subscription of 375.54 times - individual investors at 351.58 times, QIB at 228.48 times, NII at 624.56 times (sNII at 381.75 times and bNII at 745.96 times), indicating overwhelming investor confidence in engineering steel castings business model and diverse sectoral exposure.

First-Day Trading Performance

Listing Price: Gallard Steel opened at ₹223.10 representing premium of 48.73% from issue price of ₹150.00, touched high of ₹234.25 (up 56.17%) and low of ₹223.00 (up 48.67%), with VWAP at ₹225.48, reflecting strong market enthusiasm supported by exceptional subscription levels and robust growth trajectory in specialized steel castings manufacturing sector.

Growth Drivers and Challenges

Growth Drivers:

Exceptional Growth Trajectory: Revenue increased 92% and PAT surged 90% between FY24 and FY25, outstanding ROE of 43.16%, solid ROCE of 26.59%, healthy PAT margin of 11.38%, impressive EBITDA margin of 23.39% demonstrating strong operational efficiency and market demand.

Diversified Sectoral Presence: Manufacturing capabilities spanning Indian Railways traction motor and bogie components, defence cradles and trunnion housings, power generation turbine subassemblies, and industrial machinery liners providing revenue diversification and reducing dependence on single sector.

In-House Manufacturing Capabilities: ISO 9001:2015 certified foundry with comprehensive in-house machinery supporting melting, heat treatment, grinding, moulding, sand mixing, and finishing processes, wide geographical reach, stringent quality control mechanisms ensuring standardized product quality and customer satisfaction.

Challenges:

Elevated Debt Levels: Debt-to-equity ratio of 1.19, total borrowings of ₹20.38 crore against net worth of ₹17.08 crore raising financial leverage concerns, inflated earnings for FY25 compared to peers raising questions about sustainability and comparability.

Premium Valuation: Post-issue P/E of 16.60x, price-to-book of 6.15x, exceptionally strong listing premium of 48.73% creating elevated entry point concerns, small equity base post-IPO of ₹9.50 crore indicating longer gestation period for mainboard migration.

Limited Operating History: Company incorporated in 2015 with relatively short track record, significant promoter stake dilution from 91.14% to 67.16%, dependence on railway and defence sector orders creating concentration risk and government policy sensitivity.

Utilisation of IPO Proceeds

Manufacturing Expansion: ₹20.14 crore for capital expenditure towards expansion of existing manufacturing facility and construction of office building in Pithampur, enhancing production capacity to meet growing demand across railways, defence, and power sectors.

Debt Repayment: ₹7.00 crore for repayment of portion of certain borrowings, strengthening balance sheet and reducing debt-to-equity ratio to improve financial flexibility and reduce interest burden for sustainable growth.

General Corporate Purposes: ₹4.66 crore allocated for general corporate purposes supporting working capital requirements, operational needs, and strategic initiatives to maintain competitive positioning in engineered steel castings market.

Financial Performance

Revenue: ₹53.52 crore for FY25, exceptional growth of 92% from ₹27.86 crore in FY24, reflecting expanding order book across railways, defence, and power generation sectors and successful penetration into high-value component manufacturing.

Net Profit: ₹6.07 crore in FY25, remarkable growth of 90% from ₹3.20 crore in FY24, demonstrating strong operational leverage and improving profitability through better product mix and operational efficiency gains.

Financial Metrics: Outstanding ROE of 43.16%, solid ROCE of 26.59%, debt-to-equity of 1.19, healthy PAT margin of 11.38%, impressive EBITDA margin of 23.39%, price-to-book of 6.15x, post-issue EPS of ₹9.04, P/E of 16.60x, net worth of ₹17.08 crore, total borrowings of ₹20.38 crore, and market capitalisation of ₹222.54 crore.