New Delhi: Gala Precision Engineering Ltd's shares debuted on Monday at a premium of almost 42 percent compared to the Rs 529 issue price. The stock started trading at Rs 750 on the BSE, marking a 41.77 per cent increase from its issue price. Afterwards, it increased by 48.77 per cent to reach Rs 787. It surged by 36.31 per cent to Rs 721.10 upon listing on the NSE. The company had a market valuation of 972.42 crore rupees.
On Wednesday, the closing day of bidding, the Gala Precision Engineering's initial public offer received subscriptions 201.44 times its offer size. The original price range for the first share offering was set at Rs 503-529 per share. The IPO, valued at Rs 168 crore, included 25.58 lakh new equity shares worth Rs 135.34 crore and 6.16 lakh equity shares worth Rs 32.58 crore from promoter group entities and individual shareholders through an Offer For Sale (OFS).
The funds raised from the new offering will be allocated towards establishing a new facility in Vallam-Vadagal, SIPCOT, Sriperumbudur in Tamil Nadu for producing high tensile fasteners and hex bolts; acquiring equipment, plant, and machinery in Wada, Palghar in Maharashtra; settling debts and covering general corporate expenses.
Gala Precision Engineering specializes in producing precision components such as disc & strip springs (DSS), coil & spiral springs (CSS), and Special Fastening Solutions (SFS). The company provides its products to original equipment manufacturers (OEMs), Tier 1 and channel partners in sectors like renewable energy (wind turbine and hydropower plants), various industrial sectors (electrical, off-highway equipment, infrastructure, general engineering), and mobility segments (automotive and railways).
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