• Source:JND
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Gala Precision IPO Subscription Status:  Gala Precision Engineering’s initial public offering was completely subscribed within minutes of opening for bidding on Monday. Bids for 47,77,444 shares were received in the initial share sale, reflecting a 2.15 times subscription as of 11:21 p.m., according to NSE data.

Retain individual investors (RIIs) sector received a 3.15 times subscription, while the quota reserved for non-institutional investors got a 2.54 times subscription. The public issue will conclude on September 30. Earlier, Gala Precision Engineering Ltd set a price range of Rs 503-529 per share for its Rs 168 crore initial public offering (IPO).

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IPO is a combination of a fresh Issue and an offer for sale

The IPO is a combination of a fresh issue of 25.58 lakh equity shares worth Rs 135.34 crore and an offer for sale (OFS) of 6.16 lakh equity shares worth Rs 32.58 crore by promoter group entities and individual shareholders. This brings the transaction size to Rs 168 crore at the higher end of the Rs 529 price band.

The proceeds from the fresh issue will be used to establish new facilities for the manufacture of high tensile fasteners and hex bolts at Velam-Vadagal, Seapot, Sriperumbudur in Tamil Nadu; procurement of equipment, plant, and machinery at Palghar wada, Maharashtra; debt repayment, and general corporate objectives.

What does Gala Precision do?

Gala Precision Engineering is a precision component manufacturer of technical springs such as Disc and Strip Sprip (DSS); coil and spiral springs (CSS) and special fastening solutions (SFS).

The Company supplies its products to original equipment manufacturers (OEMs), Tier 1, and channel partners; used in sectors such as renewable energy, including wind turbines and hydropower plants, various industrial sectors such as electrical, off-highway equipment, infrastructure, and general engineering, mobility sectors such as automotive and railways.

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