Brokerage firms gung-ho over company’s niche market share making precision components essential for sectors like renewables, industrials, and railways
MUMBAI, Sep 2 (The CONNECT) – The Initial Public Offering of Gala Precision Engineering Limited was subscribed 10.83 times on the first day of bidding.
The issue received bids of 2,40,82,044 shares against the offered 22,23,830 equity shares, at a price band of ₹503-529, according to the data available on the stock exchanges.
Employee Portion was subscribed 38.31 times. Non-Institutional Investors Portion and Retail Portion were subscribed 20.71 times and 12.14 times respectively, whereas Qualified Institutional Buyer Portion was subscribed 0.86 times. The issue kicked off for subscription on Monday, September 2, 2024, and will close on Wednesday, September 4, 2024.
Gala Precision Engineering Ltd has earlier raised Rs 50.29 crores from anchor investors. Foreign and domestic Institutions that participated in the anchor round were NAV Capital Emerging Star Fund, Negen Undiscovered Value Fund, Cognizant Capital Dynamic Opportunities Fund, India Emerging Giants Fund, Finavenue Capital Trust, Chhatisgarh Investments, Gagandeep Credit, Resonance Opportunities Fund.
Leading brokerage firms like Deven Choksey, Reliance Securities, Choice Broking, Swastika Investmart, Master Capital, Canara Bank Securities, BP Equities and StoxBox have given a “Subscribe” rating to the issue highlighting the company’s strong market position in manufacturing niche precision components essential for sectors like renewables, industrials, and railways. GPEL’s valuation is considered attractive, with an EV/Sales multiple of 2.9 times, lower than the peer average of 4.7 times, and an Adjusted PE of 30 times, also at a discount to peers. The company’s robust financial performance is a key point of emphasis, with an 18% CAGR in revenue and a 57% CAGR in PBT from FY 2022 to FY 2024. Strategic investments in new manufacturing facilities and technological advancements further bolster GPEL’s competitive edge and capacity for future growth.
PL Capital Markets Private Limited is the sole book running lead manager and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
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.
The Company supplies its products to original equipment manufacturers (OEMs), Tier 1 and channel partners; used in sectors like renewable energy including wind turbine and hydro power plants, various industrial sectors such as electrical, off highway equipment, infrastructure and general engineering, mobility segments such as automotive and railways.
