About Gala Precision Engineering:
They are a prominent manufacturer of precision components, specializing in technical springs such as disc and strip springs, coil and spiral springs, and specialized fastening solutions. Catering to OEMs, Tier 1 suppliers, and channel partners across various sectors—ranging from renewable energy, including wind turbines and hydro power plants, to industrial sectors like electrical, off-highway equipment, infrastructure, and general engineering, as well as mobility segments like automotive and railways—they stand as a competitive force alongside companies like Harsha Engineers International and SKF India. Their high-quality technical springs and high-tensile fasteners are integral to the global supply chain, with products reaching customers in countries such as Germany, Denmark, China, Italy, Brazil, the USA, Sweden, and Switzerland.
About the Industry in which Gala Precision Engineering operates:
The global market for disc and strip springs (DSS) and wedge lock washers (WLW) was valued at approximately $891 million in CY23 and is projected to grow at a CAGR of 6.1% from CY23 to CY26. The Indian market is on a similar trajectory, expected to grow at a CAGR of 6.6% from FY24 to FY27, with a value of around $115 million in FY24. The industrial sector, including heavy machinery for manufacturing, infrastructure, and more, holds the largest revenue share, driven by increased steel demand for urbanization and construction. The mobility sector, which includes automobiles and railways, is the second-largest contributor, with growing passenger car consumption in India and Brazil. The renewable energy sector, focusing on wind and hydro power, is also expanding due to government climate policies. The coil and spiral springs (CSS) market, valued at about $459 million in FY24, is expected to grow at a CAGR of 9.8% from FY24 to FY27, driven by the rise of EVs in India. CSS is mainly used in commercial vehicles, automobiles, and railways, with EV adoption increasing demand. The industrial sector also consumes a significant share of CSS, boosted by government schemes like the PLI and Urban Infrastructure Development programs.
| Important Information and Timelines of the IPO of Gala Precision Engineering: | |
|---|---|
| Open Date | 2 September 2024 |
| Close Date | 4 September 2024 |
| Total Issue Size – Number of Shares | 3174416 |
| Minimum Bid Price | 503 |
| Maximum Bid Price | 529 |
| Lot Size | 28 |
| Basis of Allotment | 5 September 2024 |
| Initiation of Refunds and Credit of Shares to Demat | 6 September 2024 |
| Listing Date | 9 September 2024 |
| Listing Exchange(s) | NSE and BSE |
Minimum and Maximum Lot Sizes for the IPO of Gala Precision Engineering:
| Category | Lots | Shares | Amount (in â‚ą) |
|---|---|---|---|
| Retail – Minimum | 1 | 28 | 14812 |
| Retail – Maximum | 13 | 364 | 192556 |
| sHNI – Minimum | 14 | 392 | 207368 |
| sHNI – Maximum | 67 | 1876 | 992404 |
| bHNI – Minimum | 68 | 1904 | 1007216 |
Objective of the IPO of Gala Precision Engineering:
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Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu for manufacturing high tensile fasteners and hex bolt
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Funding capital expenditure requirements towards purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra.
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Repayment/ prepayment, in full or part, of certain borrowings availed by our Company.
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General Corporate Purposes.
Financials of Gala Precision Engineering:
| Particulars | As at and for the Fiscal ended March 31, 2024 | As at and for the Fiscal ended March 31, 2023 | As at and for the Fiscal ended March 31, 2022 |
|---|---|---|---|
| Equity Share Capital | 101.11 | 25.24 | 25.28 |
| Total Equity | 1044.48 | 836.54 | 593.16 |
| Total Borrowings | 550.27 | 585.98 | 568.92 |
| Total Income | 2043.77 | 1670.82 | 1479.63 |
| EBITDA | 405.89 | 289.41 | 223.51 |
| EBITDA Margins | 19.86 | 17.32 | 15.11 |
| PAT (before exceptional items) | 243.02 | 144.53 | 66.31 |
| PAT Margin (before exceptional items) | 11.89 | 8.65 | 4.48 |
| PAT (after exceptional items) | 223.32 | 242.12 | 66.31 |
| PAT Margin (after exceptional items) | 10.93 | 14.49 | 4.48 |
| Earnings per Share -Basic (without exceptional items) | 24.37 | 14.31 | 6.56 |
| Earnings per Share -Basic (with exceptional items) | 22.09 | 23.98 | 6.56 |
| Earnings per Share -Diluted (without exceptional items) | 24.02 | 14.06 | 6.44 |
| Earnings per Share -Diluted (with exceptional items) | 21.77 | 23.56 | 6.44 |
| Return on Net Worth before exceptional items | 23.27 | 17.28 | 11.18 |
| Return on Net Worth after exceptional items | 21.38 | 28.94 | 11.18 |
| Adjusted NAV per equity share | 103.30 | 82.85 | 58.66 |
For more details on the IPO, refer to the DRHP here.
Did you know that you can now Pre-Apply for an IPO on Dhan? You can place your IPO Bid on Dhan and the order will be pushed to the Exchange as soon as the Bidding starts for Gala Precision Engineering. You will receive a UPI mandate after 10:00 AM on 2 September 2024.
###1. How to apply for the IPO of Gala Precision Engineering on Dhan?
You can apply for the IPO of Gala Precision Engineering from either Dhan Mobile App or Web
On Dhan Mobile App you can find the IPO under the Money Section > IPO Tab
On Dhan Web you can find the IPO under Markets Tab > IPOs
###2. In case of successful allotment, when the IPO shares of Gala Precision Engineering be visible on Dhan?
The CDSL will intimate you regarding the credit of shares into your Demat account by 6 September 2024. However, you will be able to see the shares of Gala Precision Engineering on Dhan before the market starts on the listing date which is 9 September 2024.