Gala Precision Engineering share price made a stellar debut on the bourses today. On NSE, Gala Precision Engineering share price opened at ₹721.10 per share, 36.31% higher than the issue price of ₹529. On BSE, Gala Precision Engineering share price today opened at ₹750 apiece, up 41.78% than the issue price.
Market experts anticipated Gala Precision Engineering share price to open with a premium of 46% - 53%.
The IPO subscription of Gala Precision Engineering began on Monday, September 2, and ended on Wednesday, September 4. During the three-day bidding period, there was notable interest in the Gala Precision Engineering IPO, with non-institutional investors being the most active, followed by retail investors. According to BSE data, the Gala Precision Engineering IPO was oversubscribed 201.41 times on the final day of subscription.
The retail investors' portion saw a subscription of 91.95 times, while the non-institutional investors' quota was subscribed 414.62 times. The qualified institutional buyers (QIBs) segment was oversubscribed 232.54 times, and the employee portion's subscription rate reached 259.00 times.
According to BSE data, Gala Precision Engineering IPO subscription status reached 52.21 times on the second day of bidding, and on the initial day, the subscription status for Gala Precision Engineering IPO was 10.84 times.
The initial public offering (IPO) of Gala Precision Engineering has established a price range of ₹503 to ₹529 per equity share, and the face value is ₹10. Gala Precision Engineering specializes in manufacturing various types of springs, including disc and strip springs (DSS), coil and spiral springs (CSS), as well as special fastening solutions (SFS). The company has secured an investment of ₹50.29 crores from anchor investors. The lot size for the Gala Precision Engineering IPO is 28 equity shares, and investors have the opportunity to buy additional shares in multiples of 28.
A fresh issue of 2.56 million shares and an offer for sale (OFS) of 616,000 shares by existing promoters and shareholders are both part of the IPO. The overall issue size at the upper price band is ₹167.93 crore, with the fresh issue priced at ₹134.34 crore and the OFS at ₹32.58 crore.
The net proceeds will be used by the company for the following purposes: constructing a new facility in Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu, for the production of hex bolts and high tensile fasteners; funding the necessary capital expenditure to purchase machinery, plant, and equipment in Wada, Palghar, Maharashtra; fully or partially repaying the company's borrowed funds; and for general corporate purposes.
Pl Capital Markets Private Ltd is the book running lead manager and Link Intime India Private Ltd is the registrar for the Gala Precision Engineering IPO.
Gala Precision Engineering IPO grey market price is + 245. This indicates Gala Precision Engineering share price was trading at a premium of ₹245 in the grey market, according to investorgain.com
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Gala Precision Engineering shares was ₹774 apiece, which is 46.31% higher than the IPO price of ₹529.
The IPO GMP is heading upward and is expected to have a robust listing based on the actions of the past fifteen sessions of the gray market. Investorgain.com analysts state that the lowest GMP is ₹0 and the maximum GMP is ₹290.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
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