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GALAPREC IPO

Gala Precision Engineering Limited

IPO Doc

Start Date02-09-2024

Application Timing10am-5pm

Price Range₹503 - ₹529

Min Qty28

Min. Investment₹14084

Listing DateNA

Close Date04-09-2024

About Gala Precision Engineering Limited

Gala Precision Engineering Limited is a precision component manufacturer of technical springs like disc & strip springs (DSS) including wedge lock washers; coil & spiral springs (CSS) and special fastening solution (SFS) supplying 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 equipments, infrastructure and general engineering, mobility segments such as automotive and railways.

The technical springs and high tensile fasteners have been supplied to customers in countries such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, Switzerland etc. Accordingly, company is a key link in the global supply chain for OEMs.

Company's DSS operations commenced in the year 1989 by manufacturing disc and strip springs (DSS) and have since diversified operations to include coil and spiral springs (CSS) in 2015 and special fastening solution (SFS) in 2018.

Why To Invest in Gala Precision Engineering Limited

Well-established manufacturer of precision engineering components. The company proposes to utilise the Net Proceeds towards:

Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for manufacturing high tensile fasteners and hex bolts;
Funding capital expenditure requirements towards purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra;
Repayment/ prepayment, in full or part, of certain borrowings availed by the company; and
General corporate purposes.

Financial Table

Year	2022	2023	2024
Total Income (Rs. Cr)	147.9	167.08	204.37
Profit Afrer Tax (Rs. Cr)	6.6	24.2	22.3

Strengths And Risks

Well established manufacturer of precision engineering components: Company has a wide range of products and their varied applications have helped them develop a broad customer base across geographies and industries. With a global clientele exceeding 175 customers, they export to over 25 countries, encompassing major markets such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, Switzerland, contributing to 37.53% to total sales. They are adding new customers for springs and fasteners in high value markets such as Europe and USA.

Long-standing customer relationships : Company has long-standing relationships with OEMs, Tier 1 and channel partners customers ranging from 4 years to more than 15 years owing to high quality products, reliability in supplies, development collaboration and meeting international standards.

Well-equipped manufacturing facilities : Company operates two manufacturing facilities at Palghar, Maharashtra, which are equipped with capabilities to design, develop, and manufacture diverse product portfolio. Further, they are setting up new manufacturing facility in SIPCOT, Sriperumbuddur, Tamil Nadu for developing various high tensile fasteners. They also have in-house design and other capabilities which offer scale, flexibility, and comprehensive solutions.

Experienced management team : Company is led by Promoter Kirit Vishanji Gala who has helped expand operations within India and globally. He has more than three decades of experience in engineering and manufacturing activities.

Key customer risk: Company generates a significant portion of revenue from top key customers and therefore dependent on them for a substantial portion of business. In fiscal 2024, 2023, 2022, revenue from top five customers represented 32.46%, 29.03%, and 35.26% respectively.

Patent infringement suit: Company is involved in a patent infringement suit, and an adverse outcome in this proceeding may adversely affect the business, financial condition, and growth strategy.

High working capital requirement: Company has a high working capital requirement and if it cannot raise sufficient working capital the operations will be adversely affected.

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Connect With Us

Astha Credit & Securities Pvt Ltd
NSE, BSE & MCX Sebi Reg No:
INZ000187932

For any grievance contact:
grievance@rupeezy.in
0755-4268599

Membership ID:
NSE - 12227 BSE-6844 MCX - 40000
NSDL-IN303420 CDSL-94500

For cyber attack incident reporting:
gyanesh@rupeezy.in
9669695615

CIN:
U65929MP2003PTC016241

SEBI RA Registration:
INH000013332

SEBI Depository Participant Reg No:
IN-DP-611-2021

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Client Bank account Details:

Sr. No	Name of Bank Account	Bank Account Number	IFSC Code
1	ASTHA CREDIT AND SECURITIES P LTD - USCNBA A/c	00620340000150	HDFC0000062

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Client registration documents in Vernacular languages: Get Documents