Gala Precision Engineering Makes a Strong Debut, Lists at 36% Premium

Gala Precision Engineering saw a successful debut on the stock exchanges on September 9, listing at ₹721.10 on the NSE. This represents a 36.31% premium over the issue price of ₹529 per share. Although the listing was robust, it fell short of grey market expectations, which had anticipated a premium of about 46%.

The company’s IPO, totaling₹167.93 crore, comprised a fresh issue of 25.58 lakh equity shares worth₹135.34 crore and an offer-for-sale (OFS) of 6.16 lakh shares worth ₹32.59 crore. Shares were offered within a price band of ₹503 to ₹529 apiece.

Investor interest was high, with the IPO being oversubscribed 201.41 times overall. Retail investors subscribed 91.95 times, non-institutional investors (NII) 414.62 times, and qualified institutional buyers (QIBs) 232.54 times.

The proceeds from the IPO will be used for setting up a new facility, repaying debt, funding capital expenditure, and general corporate purposes.

Gala Precision Engineering specializes in precision components and technical springs, including disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). Its products cater to diverse sectors such as renewable energy, automotive, railways, off-highway vehicles, electrical and power equipment, heavy machinery, commercial vehicles, industrial infrastructure, and passenger vehicles.