Gala Precision Engineering's IPO was highly successful, being subscribed 201.

41 times on the last day.

The IPO subscription started on Monday, September 2, and concluded on Wednesday, September 4.

The first two days saw strong participation, especially from non-institutional investors, followed by retail investors.

On the second day, Qualified Institutional Buyers (QIBs) were also oversubscribed, and there was significant demand from employees.

On the second day, the IPO received a subscription of 52.

21 times.

Non-institutional investors subscribed to their quota 132.

93 times, retail investors 44.

21 times, QIBs 5.

06 times, and employees 117.

89 times.

On the first day, the subscription status was 10.

84 times.

The IPO price range was set between ₹503 to ₹529 per equity share, with a face value of ₹10.

Gala Precision Engineering, a manufacturer of specialized springs and fastening solutions, received an investment of ₹50.

29 crores from anchor investors.

The lot size for the IPO was 28 equity shares, with the option to purchase additional shares in multiples of 28.

The company reserved not more than 50% of the shares for QIBs, not less than 15% for non-institutional investors, and not less than 35% for retail investors.

During the fiscal year 2023-2024, the company generated ₹202.

54 crores in operating revenue, with a post-tax profit of ₹22.

33 crores.

On the last day of subscription, the IPO was subscribed 201.

41 times, with bids for 44,79,06,004 shares against 22,23,830 shares on offer.

Retail investors subscribed 91.

95 times, non-institutional investors 414.

62 times, QIBs 232.

54 times, and employees 259.

00 times.

The brokerage claims that the company has established a significant market share both domestically and internationally.

The firm is shifting its activities up the value chain and focusing on enhancing its core competencies in precision engineering for sustainability.

The company plans to expand its product line and take advantage of emerging trends using its internal design and development resources.

Investors can consider medium to long-term investments in the IPO.

The company has a 10% market share in the Indian disc market and a 2% market share in the worldwide DSS and WLW markets.

The company plans to establish a new facility in Tamil Nadu and increase capacities at its current facilities.

The DSS and WLW industries are predicted to expand at a CAGR of 6.

4% from FY24-27.

The IPO is compelling due to SFS expansion, a strong financial history, debt reduction, and favorable industry variables.

The issue is rated as SUBSCRIBE.

The IPO includes a fresh issue of 2.

56 million shares and an offer for sale (OFS) of 616,000 shares by existing promoters and shareholders.

The overall issue size at the upper price band is ₹167.

93 crores, with the fresh issue priced at ₹134.

34 crores and the OFS at ₹32.

58 crores.

The company intends to use the net proceeds to finance new facilities, capital expenditure, debt repayment, and general corporate purposes.

The grey market price (GMP) of the IPO is +230, indicating a premium of ₹230 in the grey market.

The estimated listing price of the shares is ₹759 apiece, which is 43.

48% higher than the IPO price of ₹529.

Grey market activity suggests a good listing is anticipated, with the lowest GMP at 0 and the highest at 268.