Gala Precision Engineering Ltd.'s initial public offering entered its second day on Tuesday. On the first day, the offer was subscribed 10.84 times. The company is looking to raise Rs 167.9 crore. The IPO was subscribed 52.21 times on day two.
The IPO comprises a fresh issue of 25.5 lakh shares, amounting to Rs 135 crore, and an offer for sale of 6.16 lakh shares, aggregating to Rs 32.6 crore.
A price band of Rs 503–529 per share has been set for the three-day issue, which is set to close on Wednesday. The market value at the upper end of the price band is Rs 670 crore.
The minimum lot size is 28 shares. Retail investors will need to invest a minimum of Rs 14,812. The company raised Rs 50.3 crore from anchor investors a day ahead of its public offering by allotting 9.5 lakh shares at Rs 529 apiece to eight investors.
Investors can expect the allotment of shares to be finalised on Sept. 5, with the listing on the BSE and the National Stock Exchange scheduled for Sept. 9.
Issue Details
Issue opens: Sept. 2.
Issue closes: Sept. 4.
Issue price: Rs 503–529 per share.
Total issue size: Rs 167.9 crore.
Fresh issue: Rs 135.3 crore.
Offer for sale: Rs 32.6 crore.
Bid lot: 28 shares.
Listing: BSE and NSE.
Business
Incorporated in 2009, the company is a precision component manufacturer specialising in technical springs, including disc and strip springs with wedge lock washers, coil and spiral springs, and special fastening solutions.
Their products are used in sectors like renewable energy, including wind turbines and hydropower plants, various industrial sectors such as electrical and off-highway equipment, infrastructure and general engineering and mobility segments such as automotive and railways.
Use Of Proceeds
Setting up a new facility in Sriperumbudur, Tamil Nadu, for manufacturing high-tensile fasteners and hex bolts.
Funding capital-expenditure requirements towards the purchase of equipment, plants, and machinery at Palghar, Maharashtra.
Repayment or prepayment, in full or in part, of certain borrowings availed by the company.
Gala Precision Engineering: Subscription Status
The IPO has been subscribed 52.21 times as of 5:30 p.m. on Tuesday.
Institutional investors: 5.06 times.
Non-institutional investors: 132.93 times.
Retail investors: 44.21 times.
Employee reserved: 117.89 times.
Watch The IPO Adda Here
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