Schedule of Gala Precision Engineering
| Issue open date | 02 Sep 2024 |
| Issue close date | 04 Sep 2024 |
| UPI mandate deadline | 04 Sep 2024 (5 PM) |
| Allotment finalization | 05 Sep 2024 |
| Refund initiation | 06 Sep 2024 |
| Share credit | 06 Sep 2024 |
| Listing date | 09 Sep 2024 |
| Mandate end date | 19 Sep 2024 |
| Lock-in end date for anchor investors (50%) | 05 Oct 2024 |
| Lock-in end date for anchor investors (remaining) | 04 Dec 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Gala Precision Engineering
Incorporated in 2009, Gala Precision Engineering is a precision component manufacturer of technical springs like disc & strip springs (DSS) including wedge lock washers; coil & spiral springs (CSS), and special fastening solution (SFS) supplying 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 such as electrical, off-highway equipment, infrastructure, and general engineering, mobility segments such as automotive and railways. As of March 31, 2024, With a global clientele exceeding 175 customers, the company exports to over 25 countries, encompassing major markets such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, and Switzerland, contributing to 37.53% of total sales.
Financials of Gala Precision Engineering
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹167.93 crores |
| Fresh Issue | ₹135.34 crores |
| Offer for sale | ₹32.59 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Debt reduction | 45.43 (33.57%) |
| Capital expenditure | 11.07 (8.18%) |
| Setting up a new facility in Tamil Nadu | 37 (27.34%) |
| Others | 8 (5.91%) |
| General corporate purposes | 33.84 (25%) |
Strengths
- The company’s manufacturing facilities at Palghar, Maharashtra are certified with international standards such as IATF 16949 for the manufacturing of disc springs, spring band clamps, etc, and ISO 9001:2015 certification for manufacturing and supply of disc springs, brush springs, spiral springs, retractor springs and spring cassette assemblies.
- It has a significant presence in the DSS market for the renewable industry with ~70% share in the domestic market and ~3% share in the global market.
- It is a major disc springs manufacturer in the domestic market and has ~10% market share in the Indian disc springs market.
- It has a ~15% market share in the domestic SFS market for wind turbines.
- The company has long-standing relationships with OEMs, Tier 1, and channel partner customers ranging from 4 years to more than 15 years.
- It is a well-established manufacturer of precision engineering components with a diversified product portfolio and diverse Market. disc springs are of high quality meeting German DIN 2093 standards.
Risks
- The loss of any of the top 10 customers who contribute 47.5% of the sales may adversely affect the business, results of operations, and financial Condition.
- The company is involved in a patent infringement suit, and an adverse outcome in this proceeding may adversely affect the business, financial condition, and growth strategy.
- It does not have any exclusivity arrangements with the customers and with the suppliers; instead, it relies on purchase orders and forecasts to govern the volume and other terms of product sales.
- The company’s 80% of its revenue is dependent on the spring technology segment of the business. Any downturn in the spring technology segment can adversely impact business operations.
- The business is dependent on the performance of the application industries such as industrials, renewable energy, and mobility segments.