Gala Precision Engineering IPO Listing: Shares of Gala Precision Engineering Ltd listed with a premium of nearly 42 per cent against the issue price of Rs 529 on Monday. On the BSE, the stock made its debut at Rs 750, a jump of 41.77 per cent from the issue price of Rs 529. Later, it soared 48.77 per cent to Rs 787.
On the NSE, it listed at Rs 721.10, surging 36.31 per cent. The company’s market valuation stood at Rs 972.42 crore.
The initial public offer of Gala Precision Engineering garnered 201.44 times subscriptions on the closing day of bidding on Wednesday.
Shivani Nyati, head of wealth at Swastika Investmart Ltd, said, “Gala Precision Engineering Limited (GPEL) made a strong debut on the stock market, listing at Rs. 750 per share, a significant 41% premium over its issue price of Rs. 529. This positive performance reflects the company’s robust fundamentals and the strong investor interest evident in the IPO’s oversubscription of 201.41 times.”
Investors who participated in the IPO are likely sitting on a healthy profit, but it’s important to maintain a cautious approach and continue monitoring the company’s performance and market conditions. Despite the promising listing, factors such as industry trends, competition, and global economic conditions may still influence the long-term trajectory, she said.
“For those considering holding it, you may keep a stoploss at 675,” Nyati added.
The initial share sale had a price band of Rs 503-529 per share. The Rs 168-crore IPO had 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 valued at Rs 32.58 crore by promoter group entities and individual shareholders.
Proceeds from the fresh issue will be used for setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbudur in Tamil Nadu for manufacturing high tensile fasteners and hex bolts; purchase of equipment, plant and machinery at Wada, Palghar in Maharashtra; payment of debt and general corporate purposes.
Gala Precision Engineering is a precision component manufacturer of technical springs like disc & strip springs (DSS); coil & 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 like renewable energy, including wind turbine and hydropower plants, various industrial sectors like electrical, off-highway equipment, infrastructure and general engineering, mobility segments, such as automotive and railways.
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