Company name: Gala Precision Engineering Limited
IPO Size: Fresh issue of 25.58 lakh equity shares and Offer for Sale of 6.16 lakh shares
IPO Dates: 2 September, 2024 - 4 September, 2024
Price Band: ₹ 503-529
Lot Size: 28 Shares and in multiple thereof
Lead manager: PL Capital Markets Private Limited
Registrar: Link Intime India Private Limited
About the company:
Gala Precision Engineering Limited, originally incorporated as Gala Precision Engineering Private Limited in 2009, is a key player in the precision engineering industry. The company specializes in manufacturing high-precision components and assemblies that cater to various sectors, including automotive, aerospace, and general engineering. Over the years, Gala Precision Engineering has built a reputation for delivering high-quality products that meet stringent industry standards. In 2023, the company transitioned from a private limited company to a public limited company, adopting the name Gala Precision Engineering Limited.
Headquartered in Thane, Maharashtra, the company is promoted by Kirit Vishanji Gala and Smeet Kirit Gala, who play pivotal roles in its operations and strategic direction. Gala Precision Engineering Limited also has subsidiaries, including Gala Springs LLP and Gala Precision Components Shanghai Limited, which further strengthen its market presence.
The company is preparing to go public with an Initial Public Offering (IPO), which includes both a fresh issue of shares and an offer for sale by existing shareholders. The funds raised through the IPO are earmarked for several key initiatives, including setting up a new manufacturing facility in Tamil Nadu, upgrading equipment and machinery at its Maharashtra plant, repaying existing loans, and covering general corporate expenses. The company’s equity shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) of India, marking a significant milestone in its growth journey.
Clientele:
Gala Precision Engineering Limited has cultivated a robust and diverse clientele, serving various industries that demand high-precision components and engineering solutions. The company’s clientele spans across sectors such as automotive, aerospace, and general engineering, reflecting its ability to meet the stringent quality and performance standards required by these industries.
In the automotive sector, Gala Precision supplies critical components that are essential for the production and operation of vehicles. Their products are trusted by leading automotive manufacturers and suppliers, showcasing the company’s reliability and expertise in delivering precision-engineered parts that contribute to the efficiency and safety of vehicles.
The aerospace industry, known for its rigorous quality requirements, also relies on Gala Precision’s engineering capabilities. The company’s components are used in various aerospace applications, underscoring their commitment to precision and excellence in manufacturing.
Beyond these sectors, Gala Precision Engineering serves clients in general engineering, providing customized solutions that meet specific industrial needs. This broad clientele base not only highlights the versatility of Gala Precision’s offerings but also its ability to build and maintain strong relationships with clients across different industries.
The company’s focus on quality, innovation, and customer satisfaction has enabled it to earn the trust of its clients, making it a preferred partner in the precision engineering market.
Financial Performance: (Figures in Rupees Crores)
Top Management:
Kirit Vishanji Gala, serves as the Chairman and Managing Director of Gala Precision Engineering Limited. He has been involved with the company as its Managing Director since its inception and became part of the organization through the Business Transfer Agreement (BTA). As one of the company's Promoters, Kirit brings a wealth of experience to his role. He earned a bachelor’s degree in mechanical engineering from the University of Bombay in 1984, followed by a master’s degree in management studies from the same university in 1986. In 2022, he furthered his education by completing a short course on Orchestrating Winning Performance at IMD, Switzerland. In recognition of his achievements, he received the Pride of Welingkar Institute of Management award in 2023.
Kirit is a frequent speaker on topics such as the next generation of professional entrepreneurs, change management in a VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) world, and strategy development. In his current role at Gala Precision Engineering, he is responsible for overseeing the company's business strategies and marketing efforts.
Balkishan Jalan, Executive Director of Gala Precision Engineering Limited and has been with the company since its inception. He joined the company through the Business Transfer Agreement (BTA). Balkishan holds a bachelor’s degree in commerce from the University of Bombay, earned in 1989, and became a qualified chartered accountant in 1994 through the Institute of Chartered Accountants of India. In 2010, he received the SAP ACE Excellence Award in recognition of his accomplishments.
Before joining Gala Precision Engineering, Balkishan was associated with Gala Equipments Limited, starting on September 7, 1998. The company was later renamed Gala Precision Technology Private Limited, where he also served as the Chief Operating Officer. With 25 years of experience in operations, Balkishan currently oversees the operations, finance, and overall management of Gala Precision Engineering Limited.
Satish Kotwani, Whole-time Director of Gala Precision Engineering Limited and has been with the company since its inception, joining through the Business Transfer Agreement (BTA). He holds a diploma in mechanical engineering from the Board of Technical Examinations, Maharashtra, obtained in 1991. Additionally, he earned a diploma in management (materials) from N.G. Bedekar College of Commerce in 1992, and a diploma in marketing management from the Bombay Institute of Management Studies in 1996. Satish has also participated in executive education programs at the Indian Institute of Management Bangalore and the Indian School of Business.
Prior to joining Gala Precision Engineering, Satish was associated with Born Marketers Private Limited beginning on June 10, 1993. He later joined Gala Equipments Limited on June 1, 1995, which was eventually renamed Gala Precision Technology Private Limited, where he held the position of Senior Manager in Business Development. With 30 years of experience in marketing, Satish now oversees global business development, marketing, and sales at Gala Precision Engineering Limited.
Objectives of the issue:
The company plans to use the Net Proceeds for the following purposes:
1. Establishing a new manufacturing facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu, specifically for producing high tensile fasteners and hex bolts.
2. Financing capital expenditures for acquiring equipment, plant, and machinery at its Wada, Palghar, Maharashtra location.
3. Repaying or prepaying, either fully or partially, certain loans taken by the company.
4. Meeting general corporate expenses.
DISCLAIMER: All the information above is for educational purposes only and in any way is not a recommendation.