Gala Precision Engineering
Book Building issueMainboardNSE₹168 Cr issue
+41.78%
Listing gain over issue price
Issue size
₹168 Cr
1 lot at cut-off
₹14,812
Lot size
28shares
Open
02 Sep 2024
Close
04 Sep 2024
Allotment
05 Sep 2024
Listing
09 Sep 2024
Listing performance
Issue price
₹529
Listed at
₹750
Listing-day close
₹787.05
Latest price
₹1,024.50
Close on 23 Oct 2026
Listing gain
+41.78%
Return since issue
+93.67%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 02 Sep 2024 – 04 Sep 2024
- Listing date
- 09 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹529 per share
- Lot size
- 28 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹168 Cr
- Market cap at offer price
- ₹670 Cr
- Promoter holding
- 74.56% → 55.40% pre-issue → post-issue
- ISIN
- INE0RE001014
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- PL Capital Markets Pvt.Ltd.
- Registered office
- A-801, 8th Floor, Thane One DIL Complex, Ghodbunder Road Majiwade, Thane (West), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 9,50,586 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 28 shares per lot, in multiples, at ₹529
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 28 | ₹14,812 |
| Retail (max) | 13 | 364 | ₹1,92,556 |
| S-HNI (min) | 14 | 392 | ₹2,07,368 |
| S-HNI (max) | 67 | 1,876 | ₹9,92,404 |
| B-HNI (min) | 68 | 1,904 | ₹10,07,216 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
9,50,586
Anchor portion
₹50.29 Cr
at ₹529 per share
Valuation and performance
Valuation at offer price
₹529 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 22.09 | 17.63 |
| P/E (×) | 23.95 | 30.01 |
| Price to book (×) | 5.12 | — |
| Market cap | — | ₹670 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 21.38%
- ROCE
- 19.91%
- Debt / equity
- 0.53
- PAT margin
- 11.89%
- NAV per share
- ₹103.30
- Price to book
- 5.12
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Gala Precision Engineering
Gala Precision Engineering Limited is a precision component manufacturer incorporated on February 23, 2009, and converted to a public company in October 2023. The company manufactures technical springs—disc & strip springs (DSS), coil & spiral springs (CSS), and special fastening solutions (SFS)—which are supplied to OEMs, Tier 1 and channel partners. These products are used across multiple sectors including renewable energy (wind turbines, hydro power plants), various industrial sectors (electrical, off-highway equipment, infrastructure, general engineering), and mobility segments (automotive and railways). The company operates manufacturing facilities and has exported products to over 25 countries including Germany, Denmark, China, Italy, Brazil, USA, Sweden, and Switzerland, positioning itself as a key link in global supply chains. Revenue from operations for FY2024 was ₹2,025.45 million, with EBITDA of ₹405.89 million.
Company Analysis
from RHPGala Precision Engineering Limited manufactures precision components including technical springs (disc & strip springs, coil & spiral springs) and special fastening solutions for original equipment manufacturers serving renewable energy, industrial, automotive, and railway sectors globally.
Gala Precision Engineering Limited is a precision component manufacturer incorporated on February 23, 2009, and converted to a public company in October 2023. The company manufactures technical springs—disc & strip springs (DSS), coil & spiral springs (CSS), and special fastening solutions (SFS)—which are supplied to OEMs, Tier 1 and channel partners. These products are used across multiple sectors including renewable energy (wind turbines, hydro power plants), various industrial sectors (electrical, off-highway equipment, infrastructure, general engineering), and mobility segments (automotive and railways). The company operates manufacturing facilities and has exported products to over 25 countries including Germany, Denmark, China, Italy, Brazil, USA, Sweden, and Switzerland, positioning itself as a key link in global supply chains. Revenue from operations for FY2024 was ₹2,025.45 million, with EBITDA of ₹405.89 million.
precision engineering and manufacturingrenewable energy (wind turbines, hydro power)automotive and mobilityindustrial equipment and machineryinfrastructure and general engineeringrailway sector
Objects of the Issue
- Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts ₹370.00 million p.29
- Funding capital expenditure requirements towards purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra ₹110.69 million p.29
- Repayment/prepayment, in full or part, of certain borrowings availed by our Company ₹454.30 million p.29
- General Corporate Purposes p.29
- Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts ₹483.32 million (estimated total expenditure) p.53
- Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts ₹370.00 million p.121
- Funding capital expenditure requirements towards purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra ₹110.69 million p.121
- Repayment/prepayment, in full or part, of certain borrowings availed by our Company ₹454.30 million p.121
- General corporate purposes [●] p.121
- Increase manufacturing capacity at existing facilities for DSS and CSS products at Wada, Palghar, Maharashtra ₹110.69 million p.213
- Set up new manufacturing facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu for developing various high tensile fasteners and new products like bolts ₹370.00 million p.213
Issue Structure
- Total Issue
- Up to 3,174,416 Equity Shares of ₹10 each, aggregating up to ₹[●] million
- Fresh Issue
- Up to 2,558,416 Equity Shares of ₹10 each, aggregating up to ₹[●] million
- Offer for Sale
- Up to 616,000 Equity Shares of ₹10 each, aggregating up to ₹[●] million by the Selling Shareholders
- Price Band
- Price band to be decided and will be advertised at least two working days prior to Bid/Offer Opening Date
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue by manufacturing and selling precision technical springs and fastening solutions to original equipment manufacturers (OEMs), Tier 1 suppliers, and channel partners across multiple industries. In FY2024, spring technology segment contributed 80.11% of revenue. The company operates on a purchase order basis without long-term exclusivity arrangements. Major application segments include industrials (40.49% of FY2024 revenue), renewable energy (30.98%), and mobility segments (28.53%). Export sales represented 37.53% of FY2024 revenue.
Business Segments
Manufactures disc & strip springs (DSS) including wedge lock washers and coil & spiral springs (CSS) for use in renewable energy, industrial, automotive and railway applications
Manufactures special fastening solutions (SFS) and hex bolts for supply to OEMs and Tier 1 suppliers
Manufacturing of precision components including springs, anchor bolts, studs, and fasteners for various applications including automotive and industrial uses
Emerging product segment for storage and material handling applications
Manufactures disc springs (DIN 2093 standard), strip springs, and wedge lock washers for applications in renewable energy, railways, automobiles, off-highway vehicles, electrical equipment, and heavy machinery.
Manufactures coil and spiral springs for critical applications in mobility (commercial vehicles, automobiles, railways) and industrial infrastructure, including off-highway vehicles and valves & actuators.
Manufactures special fastening solutions such as anchor bolts and studs from alloy steel, high tensile steel, and structural steel with various coatings for wind energy, hydroelectricity generation, railways, off-highway vehicles, and heavy machinery applications.
Manufactures disc springs, strip springs, and wedge lock washers used in renewable energy (wind turbine yaw brakes, hydroelectric thrust bearings), railways (suspension systems, couplers, brakes), automobiles (clutch and brake mechanisms), off-highway vehicles, and electrical equipment. Products conform to German DIN 2093 standards and DIN 25201-4 for wedge lock washers.
Manufactures coil springs and spiral springs for automobiles (engine, suspension, clutch, transmission, seat reclination, seatbelt retractors), commercial vehicles (clutch assemblies, shock absorption), railways (suspension systems, braking systems), off-highway vehicles (clutches, engines, valve springs), and industrial applications (hydraulic and pneumatic control valves). Coil springs store potential energy; spiral springs store and release rotational energy.
Manufactures high-tensile fasteners including anchor bolts, studs, and nuts used in renewable energy (wind turbines, hydroelectric plants, solar installations), off-highway vehicles, electrical and power equipment, railway infrastructure, and industrial applications. Fasteners are essential for connecting and securing components, providing structural integrity under vibration and dynamic loads.
Sold intangible assets (know-how) on May 30, 2022 to SM Systems Private Limited. No longer operational as core business.
Manufacturing and sale of disc springs, strip springs, fasteners including studs and anchor studs, and related precision metal assemblies
Produces disc and strip springs (DSS), coil and spiral springs (CSS), wedge lock washers, and special fastening solutions used in renewable energy, industrial, automotive, railway sectors
Manufactures centrifugal finishing machines, washing systems and media chemicals; classified as discontinuing operations
Produces a broad range of disc springs for wind mill, transformers, turbines, railways, automotives and off high way vehicles
Manufactures centrifugal finishing machines, washing systems and media chemicals; discontinued during the year ended March 31, 2023
SWOT Analysis
Strengths
- • Established precision component manufacturer with global supply chain presence(p.29)
- • Revenue growth and improving profitability(p.31)
- • Positive return on net worth(p.31)
- • Historical revenue growth trajectory(p.53)
- • Significant export market presence and diversification(p.55)
- • Improving profit margins(p.59)
- • Diversified product portfolio and manufacturing capabilities(p.53)
- • Established manufacturer with 30+ years of experience in spring material expertise(p.168)
- • Strong market position in Indian disc springs with ~10% market share and ~85% share in Indian renewable DSS market(p.169)
- • Diversified product portfolio across DSS, CSS, and SFS addressing multiple industries(p.167)
- • Global export presence reaching 25+ countries with ~37.5% revenue from exports(p.150)
- • ISO 9001:2015 and IATF16949 certified manufacturing facilities(p.169)
- • Track record of consistent financial growth with improving operating efficiency(p.149)
- • Established operational history with continuous product innovation(p.246)
- • Multiple prestigious industry awards and certifications from global customers(p.247)
- • Diversified product portfolio across multiple industrial segments(p.246)
- • Strong management team with extensive industry experience(p.256)
- • Export presence and international business development(p.247)
- • Leading domestic market position in disc springs for renewable energy with ~70% domestic market share and ~3% global market share(p.365)
- • Approximately 10% market share in the Indian disc springs market overall(p.365)
- • Global customer reach with manufacturing to over 175 customers across 25+ countries and export revenue contribution of 37.53% as of March 31, 2024(p.365)
- • International certifications including IATF 16949 and ISO 9001:2015 for manufacturing facilities at Wada, Palghar(p.364)
- • Manufacturing capacity of 246.46 million units of springs and washers annually as of March 31, 2024(p.365)
- • Significant experience of 15+ years manufacturing disc springs for wind turbine yaw brakes supplied to global OEMs(p.365)
- • Revenue growth driven by increased demand across multiple sectors(p.380)
- • Improving profitability and margins(p.382)
- • Strong EBITDA margin improvement(p.375)
- • Growing asset base and capital utilization(p.376)
Weaknesses
- • High customer concentration risk(p.43)
- • Dependence on springs technology segment(p.45)
- • No long-term supply contracts with suppliers(p.45)
- • High supplier concentration(p.45)
- • Exposure to patent infringement litigation(p.44)
- • Reliance on third-party transportation(p.50)
- • Labor-intensive operations with attrition risk(p.50)
- • Promoter guarantees on debt facilities(p.52)
- • High receivables and collection risk concentration(p.58)
- • Significant debt burden and liquidity constraints(p.62)
- • Dependence on key management personnel(p.54)
- • Single manufacturing facility concentration(p.55)
- • Statutory compliance lapses in employee contributions(p.55)
- • Capital expenditure may not deliver expected returns(p.53)
- • High concentration of revenue from specialized fasteners segment in renewable energy(p.147)
- • Limited scale compared to listed industry peers; smallest among peer group by revenue(p.148)
- • Dependence on OEM and Tier-1 customers with B2B concentrated sales model(p.147)
- • Long product development and validation cycles increasing time-to-market(p.168)
- • Significant accumulated losses in Shanghai subsidiary(p.251)
- • High financial leverage with substantial borrowings(p.294)
- • Dependence on related party lending at market rates(p.250)
- • No dividend history despite operational profitability(p.287)
- • Dilution of shareholding through recent bonus share issuance(p.300)
- • High customer concentration with top 10 customers representing 47.48% of revenue from operations as of March 31, 2024(p.364)
- • Contingent liability from patent infringement litigation for wedge-lock technology washers with Nord-Lock AB & Nord-Lock (India) Pvt. Ltd. involving unquantified potential exposure(p.358)
- • Exposure to China market disruption with write-off of Rs. 23.65 Million inventory and ongoing winding-up proceedings for Gala China subsidiary(p.358)
- • Significant net debt of Rs. 536.44 Million as of March 31, 2024 with borrowing dependence for operations(p.339)
- • Disputed income tax demands of Rs. 32.97 Million as contingent liability(p.358)
- • Significant debt burden with moderate leverage ratios(p.375)
- • Dependence on working capital facilities(p.380)
- • Rising finance costs impacting profitability(p.380)
- • Material contingent liabilities from patent dispute(p.385)
- • Dependence on top few customers(p.391)
Opportunities
- • Growing DSS and WLW market globally(p.29)
- • Strong CSS market growth driven by EV expansion(p.29)
- • Renewable energy sector expansion(p.29)
- • Government support for industrial development(p.29)
- • Capital expansion into high-tensile fasteners(p.30)
- • Expansion to high-margin segments and value chain progression(p.53)
- • Planned new manufacturing facility for high tensile fasteners(p.53)
- • Emerging product segments with growth potential(p.57)
- • Global DSS & WLW market projected to grow at 6.1% CAGR through CY26 to reach US$1,065M(p.171)
- • Indian DSS & WLW market growing at 6.6% CAGR through FY27 to reach US$138M, with renewable segment at 9.4% CAGR(p.176)
- • Expansion of renewable energy capacity with G20 target to triple installed capacity by CY30(p.171)
- • Indian infrastructure spending planned increase to INR 10 lakh Cr (~3% of GDP) in Budget FY23-24(p.176)
- • Setting up new manufacturing facility in Chennai for special fastening solutions to expand capacity(p.168)
- • EV penetration growth creating rising demand for coil & spiral springs market at 9.8% CAGR through FY27(p.166)
- • Government policies supporting manufacturing through Make in India, PLI scheme and tariff protection(p.165)
- • Expansion into new geographies and markets(p.247)
- • Growing demand for precision components in emerging sectors(p.247)
- • Potential for increased capacity utilization and automation(p.294)
- • Expanding customer base in railway and metro segments(p.247)
- • Growing renewable energy sector demand for precision components(p.247)
- • Growing global renewable energy demand with onshore wind additions forecast at ~25% higher on average compared to CY15-20, averaging 75 GW per year through CY26(p.365)
- • Expected tripling of offshore wind capacity by CY26 to account for one-fifth of global wind market(p.365)
- • Government policy focus on renewable energy and climate change mitigation driving increased demand in EU and China markets(p.365)
- • Expansion into high-value markets in Europe and USA with new customer addition for springs and fasteners(p.365)
- • Diversification into multiple end-user industries beyond renewable energy including industrial, electrical, automotive and railways sectors(p.364)
- • Expansion into renewable energy, railways and industrial sectors(p.380)
- • Increased automobile industry demand and new supply contracts(p.380)
- • Capital expansion capability for increased production(p.386)
- • Potential for cost optimization and operational efficiency(p.380)
Threats
- • Cyclicality and downturn risk in application industries(p.46)
- • Raw material price volatility and supply disruptions(p.45)
- • Foreign exchange fluctuation risk(p.52)
- • Power supply and fuel cost risks(p.52)
- • Regulatory and compliance risks(p.52)
- • No exclusivity arrangements with customers and suppliers(p.44)
- • Market price and valuation uncertainty(p.52)
- • Foreign exchange volatility and hedging constraints(p.53)
- • Export tariff and trade agreement risks(p.53)
- • Competitive intensity from domestic and international players(p.55)
- • Raw material supply volatility and price exposure(p.58)
- • Manufacturing facility disruption risks(p.55)
- • Macroeconomic slowdown in India(p.67)
- • Geopolitical tensions and trade disruptions(p.67)
- • Customer demand volatility and order cancellations(p.57)
- • Global and Indian economies exposed to cyclicality affecting capital expenditure demand(p.162)
- • Intense competition from larger domestic and international manufacturers in precision engineering(p.169)
- • Raw material price volatility affecting operating margins, with commodity price exposure(p.165)
- • Foreign exchange fluctuation risk with 37.5% revenue from exports(p.150)
- • Dependence on global OEM customers subject to supply chain disruptions and external shocks(p.147)
- • Regulatory and tariff uncertainties in export markets affecting pricing and demand(p.160)
- • Exposure to fluctuating foreign exchange rates(p.298)
- • Dependence on automotive and industrial sectors subject to cyclicality(p.295)
- • Significant exposure to import duties and customs regulations(p.245)
- • Raw material price volatility and supply chain risks(p.295)
- • Competition from established multinational precision component manufacturers(p.245)
- • Highly competitive and fragmented industry environment in both domestic and overseas markets with larger competitors benefiting from economies of scale(p.365)
- • Risk of lower product prices and decreased profit margins due to competitive pressure in manufacturing sector(p.365)
- • Exposure to foreign exchange rate fluctuations with net export exposures in USD, EURO, GBP and JPY currencies(p.340)
- • Dependence on volatile commodity prices for raw materials with pass-through provisions in customer contracts(p.341)
- • Geopolitical risks from Russia-Ukraine conflict affecting energy security and renewable energy investments globally(p.365)
- • Patent infringement litigation from Nord-Lock(p.397)
- • Risk of regulatory changes affecting borrowing capacity(p.394)
- • Raw material cost volatility and input price inflation(p.377)
- • Foreign exchange and input price fluctuations(p.387)
- • Intense competition in precision components industry(p.391)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Kirit Vishanji Gala | Promoter | 27.61% | — |
| Smeet Kirit Gala | Promoter | 5.83% | — |
| Kirit Vishanji Gala | Promoter | 27.61% | — |
| Smeet Kirit Gala | Promoter | 5.83% | — |
| Kirit Vishanji Gala | Promoter | 27.61% | — |
| Smeet Kirit Gala | Promoter | 5.83% | — |
| Kirit Vishanji Gala | Promoter/Chairman and Managing Director | — | — |
| Kirit Vishanji Gala | Promoter | — | — |
| Smeet Kirit Gala | Promoter | — | — |
| Kirit Vishanji Gala | Promoter | 22.66% | — |
| Vishanji Harshi Gala | Promoter | 15.24% | — |
| Rumie Kirit Gala | Promoter | 12.33% | — |
| Taramati V Gala | Promoter | 10.30% | — |
| Pooja Unichem LLP | Promoter Group | 6.53% | — |
| Taramati V Gala | Selling Shareholder | — | — |
| Kirit Vishanji Gala (HUF) | Selling Shareholder | — | — |
| Nayna Gala | Selling Shareholder | — | — |
| Satish Kotwani (jointly with Anjali Kotwani) | Selling Shareholder | — | — |
| Hemlata Dhiraj Shah (jointly with Dhiraj Nanchand Shah) | Selling Shareholder | — | — |
| Dhiraj Nanchand Shah (jointly with Hemlata Dhiraj Shah) | Selling Shareholder | — | — |
| Rupa Sunil Mehta | Selling Shareholder | — | — |
Leadership
Kirit Vishanji Gala · Chairman and Managing Director
Srinivasan Giridhar · Chief Financial Officer
Pooja Ladha · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Gala Precision Engineering IPO FAQs
What is the lot size of Gala Precision Engineering IPO?
The minimum lot size of Gala Precision Engineering IPO is 28 shares. One lot costs ₹14,812 at the cut-off price.
When does Gala Precision Engineering IPO open and close?
Gala Precision Engineering IPO opened for subscription on 02 Sep 2024 and closed on 04 Sep 2024.
What is the listing date of Gala Precision Engineering IPO?
Gala Precision Engineering IPO listed on 09 Sep 2024.