Gala Precision Engineering's IPO Sees Unprecedented Subscription Surge

Gala Precision Engineering's initial public offer (IPO) experienced massive investor interest, garnering a staggering 201.44 times subscription. The Rs 168-crore IPO aims to finance a new manufacturing facility, purchase equipment, and pay off debt. The company's shares are slated to be listed on the BSE and NSE.

The initial public offering (IPO) of Gala Precision Engineering experienced extraordinary investor enthusiasm, achieving a subscription rate of 201.44 times on its final bidding day, Wednesday.

According to data from the National Stock Exchange (NSE), the IPO drew bids for a remarkable 44,79,68,752 shares against the 22,23,830 shares initially offered.

The segment earmarked for non-institutional investors was subscribed 414.65 times, while the category for Qualified Institutional Buyers (QIBs) received 232.54 times subscription. Retail Individual Investors (RIIs) garnered a subscription rate of 91.99 times.

Notably, the offering was fully subscribed within minutes of opening on Monday, ending the day with a 10.83 times subscription rate.

Gala Precision Engineering Ltd has established a price band of Rs 503-529 per share for its Rs 168-crore IPO. The offer includes 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.

The proceeds are earmarked for setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu, purchasing equipment, plant and machinery at Wada, Palghar, Maharashtra, debt repayment, and general corporate purposes.

Gala Precision Engineering manufactures technical springs and special fastening solutions, supplying to sectors like renewable energy, industrial, automotive, and railways. The equity shares are set to be listed on BSE and NSE, with PL Capital Markets Pvt Ltd acting as the sole book-running lead manager for the IPO.

(With inputs from agencies.)