Gala Precision Engineering Limited, one of the leading manufacturers of technical springs, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).
The company filed for the IPO on February 14, 2024. The IPO includes a fresh issue of up to 25.58 lakh equity shares and an offer for sale of up to 6.16 lakh equity shares by the promoters and individual shareholders. There will be a reservation for eligible employees.
The IPO will be done through a book-building process. Up to 50% of the shares will be allocated to institutional buyers, at least 15% to non-institutional bidders, and at least 35% to retail bidders.
Funds raised will be used to set up a new facility in Tamil Nadu for making high tensile fasteners and hex bolts, Rs 11.07 crore for equipment and machinery at the Wada, Palghar, Maharashtra plant, Rs 30 crore to repay certain borrowings and General corporate purposes. Led by Kirit Vishanji Gala, Gala Precision focuses on quality and technology, with over 30 years of experience. The company holds about 15% of the domestic market for wind turbine fasteners.
Gala Precision’s main business is making springs and special fastening solutions. It has two manufacturing plants in Maharashtra and is setting up a new one in Tamil Nadu. PL Capital Markets Private Limited is the lead manager for the IPO, and Link Intime India Private Limited is the registrar. The shares will be listed on the BSE and NSE.