Gala Precision Engineering IPO: The initial public offering (IPO) of Gala Precision Engineering Limited is going to open on September 2. At the same time, the IPO will close on September 4. The gray market premium of this IPO is 45%. Let’s know the details of the IPO.
what is the issue price
Gala Precision Engineering has fixed the price band of Rs 503 to Rs 529 per equity share with a face value of Rs 10 for its IPO. The grey market premium is Rs 240. In this regard, the IPO can be listed at Rs 769. Investors can bid for a minimum of 28 equity shares. After that, bids can be made in multiples of 28 equity shares. The IPO consists of a face issue of 25,58,416 equity shares and an offer for sale (OFS) of 6,16,000 equity shares by promoter group selling shareholders and personal selling shareholders.
what will happen to the money
Out of the proceeds raised from the issue of the company, up to a limit of Rs 37 crore will be used to set up a new facility at Sriperumbudur, SIPCOT, Vallam-Vadagal in Tamil Nadu. Apart from this, Rs 11.06 crore will be used as capital expenditure for the purchase of equipment, plant and machinery at the company’s plant located at Wada, Palghar in Maharashtra. Apart from this, Rs 45.43 crore will be used for repayment / prepayment of certain loans taken by the company and general corporate purpose.
Let us tell you that the anchor investors of the company were allotted 9,50,586 equity shares at Rs 529 per share on Friday, August 30. The foreign and domestic institutions that participated in the anchor round were NAV Capital Emerging Star Fund, Negen Undiscovered Value Fund, Cognizant Capital Dynamic Opportunities Fund, India Emerging Giants Fund, Finvenue Capital Trust, Chhattisgarh Investments, Gagandeep Credit, Resonance Opportunities Fund.
About the Company
Gala Precision Engineering Limited is a component manufacturer of technical springs. The company operates its business from its two manufacturing facilities located at Vada, Palghar, Maharashtra. It is also setting up a new manufacturing facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu to develop various high-tensile fasteners to add to its existing product portfolio and introduce new products.
