 "Gala Precision Engg bucks market trend, lists at 42% premium on bourses")
Gala Precision Engineering IPO listing today: Shares of Gala Precision Engineering made a robust debut on the stock exchanges on Monday, despite an otherwise weak market sentiment. Gala Precision Engineering shares listed at Rs 750 on the BSE, reflecting a premium of 41.77 per cent over their issue price of Rs 529.
On the NSE, the company's shares opened at Rs 721.10, a premium of 36.31 per cent over their issue price, on Monday.
With this strong listing, Gala Precision Engineering delivered returns of Rs 221 per share, or over 41 per cent, to investors who were allocated shares during the initial offering.
Commenting on the listing, Prashanth Tapse, Senior VP (Research), Mehta Equities, said, "Despite pressure in the markets, Gala Precision managed to list in line with our expectations. Even though the offer was fully priced on the higher side with OFS, Gala Precision received a healthy 201x subscription demand considering the market optimism at the time of offer bidding."
Considering its business model of manufacturing precision components with specialisation in technical springs and the healthy listing gain of above 40 per cent, Tapse recommended that allotted investors choose to book profits on the listing day.
Considering its business model of manufacturing precision components with specialisation in technical springs and the healthy listing gain of above 40 per cent, Tapse recommended that allotted investors choose to book profits on the listing day.
Ahead of their debut on the bourses, the shares of Gala Precision Engineering were quoted at a strong grey market premium of Rs 245 or 46.31 percent, indicating a strong market debut, according to several sources tracking grey market activity.
The public issue of Gala Precision Engineering garnered mostly positive reviews from brokerages, including Deven Choksey Research, Swastika Investmart, Anand Rathi Research Team, and Choice. READ MORE
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With the public issue, Gala Precision Engineering offered a fresh issue of 2,558,416 equity shares and an offer for sale of 616,000 shares, with a face value of Rs 10 each. The public issue, offered at a price band of Rs 503-529 with a lot size of 28 shares, ended for subscription on Wednesday, September 4, 2024, receiving overwhelming interest from investors, garnering a massive 201.41 times subscription by the final day.
NSE data reveals that investors bid for 44,790,604 shares against the 22,23,830 shares offered. The impressive subscription was largely driven by non-institutional investors, who bid for 414.62 times the shares on offer, followed by Qualified Institutional Buyers (QIBs) who subscribed 232.54 times, and retail investors who subscribed 91.95 times by the close of the issue, as per NSE data.
NSE data reveals that investors bid for 44,790,604 shares against the 22,23,830 shares offered. The impressive subscription was largely driven by non-institutional investors, who bid for 414.62 times the shares on offer, followed by Qualified Institutional Buyers (QIBs) who subscribed 232.54 times, and retail investors who subscribed 91.95 times by the close of the issue, as per NSE data.
About Gala Precision Engineering:
Gala Precision Engineering is a manufacturer specialising in precision engineering components, offering a broad and varied product portfolio across multiple markets. The company plans to further develop its expertise in key sectors such as renewable energy, industrial, and mobility by continuously reinforcing its core strengths in precision engineering for sustainability.