Gala Precision Engineering submits preliminary IPO documentation

Gala Precision Engineering submits preliminary IPO documentation

Gala Precision Engineering Initial Public Offering | The IPO consists of the firm issuing 25,58,416 new equity shares and the current shareholders offering to sell 6,16,000 of their existing equity shares.

Filed IPO documentation is Gala Precision Engineering.

Gala Precision Engineering, situated in Maharashtra, has filed preliminary documents with SEBI, the capital markets regulator, in order to acquire cash via an initial public offering.

According to a filing with SEBI on February 14, the IPO of 31,74,416 equity shares consists of an offer by the business to sell 6,16,000 equity shares and a new issuance of 25,58,416 equity shares.

The OFS's principal seller, promoter Vishanji Hershi Gala, will sell 3,85,200 equity shares. Kirit Vishanji Gala (HUF), Nayana Gala, Satish Kotwani, and Hemlata Dheeraj Shah should sell the remaining 2,30,800 equity shares. Urmil Dheeraj Shah, Dheeraj Nanchand Shah, and Rupa Sunil Mehta.

The public, including Pooja Unichem LLP, owns the remaining shares of the firm, with the promoters owning 74.56% of it.

Gala, a company that produces technical springs with precise components like Disc and Strip Springs (DSS), plans to invest Rs 37 crore of the proceeds to establish a new factory in Sriperumbudur, Tamil Nadu, where it would produce hex bolts and high tensile fasteners.

In addition, Rs 11.08 crore would be utilized to pay back a loan of Rs 30 crore as well as to buy machinery, plant, equipment equipment in Palghar, Maharashtra.

As of December 2023, the firm owed Rs 59.05 crore in outstanding borrowings.

Numerous industries, including renewable energy, railroads, autos, off-highway vehicles, heavy machinery, and electrical and power equipment, employ its DSS products. With a 70% local market share and a 3% worldwide market share, it commands a substantial market position in the DSS market for the renewable sector.

XEDY Clutch India, BUFAB India Fasteners, John Deere India, Brembo Brakes India, Endurance Technologies, Enercon GmbH, Hitachi Estemo Chennai, L&T Electrical & Automation Products (a unit of Schneider Electric), SAL Automotive, Schaeffler India, and Turbo Energy are just a few of the global Original Equipment Manufacturers (OEMs) and Tier 1 as well as channel partners to which Gala Precision Engineering supplies products.

Financially speaking, extraordinary earnings helped the net profit for the fiscal year that ended in March of FY13 rise by 240% year over year to Rs 22.6 crore.

Comparing the same time last year to this one, revenue from operations climbed by 14% to Rs 165.5 crore. On sales of Rs 95.68 crore, net profit for the first half of FY24 was Rs 10.13 crore.

The issue's only merchant banker is PL Capital Markets.