Mumbai-based Gala Precision Engineering Limited, a leading precision component manufacturer of technical springs, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The company filed its IPO papers with SEBI on February 14, 2024.
The IPO has a face value of Rs 10 and consists of a fresh issue of equity shares up to 25.58 lakh and an offer for sale of up to 6.16 lakh equity shares by the Promoter Group and Individual Selling Shareholders. The offer includes a reservation for subscription by eligible employees.
The Offer is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 35% of the offer shall be available for allocation to retail individual bidders.
The proceeds from the fresh issue, to the extent of Rs 37 crore for setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts; Rs 11.07 crore for funding capital expenditure requirements towards the purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra; Rs 30 crore for repayment/ prepayment, in full or part, of certain borrowings availed by the Company; and General Corporate Purposes.
Led by Kirit Vishanji Gala, Gala Precision is a technology-driven company with a strong focus on quality, design tool development, and application engineering. It has more than 3 decades of experience in developing customized products to meet the evolving needs of its customers and commands an approximation of 15% market share in the domestic SFS market for wind turbines.
Gala Precision’s business primarily comprises of springs technology division, which manufactures DSS including wedge lock washers (“WLW”), coil & spiral springs (“CSS") and special fastening solution (“SFS”) which manufactures anchor bolts, studs, and nuts.
The Company operates its business from its two manufacturing facilities located in Wada, Palghar, Maharashtra. Further, it is also setting up a new manufacturing facility in Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for developing various high-tensile fasteners to add to its existing product portfolio and new products.
PL Capital Markets Private Limited is the sole book-running lead manager for the IPO, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.