Synopsis: Gala Precision Engineering, a Thane-based manufacturer of precision components, made an impressive entry into the stock market on September 9, 2024. The shares were listed at a 41.78% premium on the BSE and 36.31% on the NSE.
Gala Precision Engineering made a remarkable debut on Dalal Street on September 9, 2024, amidst ongoing market volatility.
The company’s shares were listed on the Bombay Stock Exchange (BSE) at Rs. 750 per share, representing a 41.78% premium over the issue price of Rs. 529.
On the National Stock Exchange (NSE), the shares opened at Rs. 721.10, reflecting a premium of 36.31%.
Prior to its listing, Gala Precision's shares were commanding a premium of Rs. 245-250 in the grey market, indicating a potential 50% listing pop for investors.
The grey market premium peaked at around Rs. 290 when the IPO allotment was finalized.
The initial public offering (IPO) of Gala Precision Engineering was held from September 2 to September 4, 2024.
The company offered its shares in a price band of Rs. 503-529 per share, with a lot size of 28 shares.
The IPO raised a total of Rs. 167.93 crore, which included a fresh issue worth Rs. 135.34 crore and an offer-for-sale (OFS) of 6,16,000 equity shares.
The IPO saw overwhelming demand from investors, being oversubscribed by an astonishing 201.41 times.
The quota reserved for Qualified Institutional Buyers (QIBs) was subscribed 232.54 times, while Non-Institutional Investors (NIIs) subscribed to the issue 414.62 times.
Retail investors also showed significant interest, with their portion being subscribed 91.95 times, and the employees’ quota witnessing a subscription rate of 259 times.
Gala Precision Engineering, founded in February 2009, is a manufacturer of precision components, including disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS).
These products are supplied to Original Equipment Manufacturers (OEMs), which has helped the company build a solid reputation in the market.
Brokerages were generally optimistic about the company's IPO, recommending it as a strong long-term investment.
PL Capital Markets acted as the sole book-running lead manager for the IPO, while Link Intime India handled the registrar services.
Gala Precision’s shares are now listed on both BSE and NSE.
In conclusion, Gala Precision Engineering’s debut on the stock exchanges has been impressive, with significant premiums achieved on both the BSE and NSE.
The oversubscription of the IPO demonstrates strong investor confidence in the company, driven by its established presence in the precision engineering space.
The listing has lived up to market expectations, positioning the company for continued growth in the coming years.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Stock market investments carry risk, and it is recommended to consult with a certified financial advisor before making any investment decisions.
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