Sarah Brady
Updated on: October 7, 2024 7:00 am GMT
The Gala Precision Engineering IPO has seen a remarkable response from investors, with the subscription figures indicating robust demand. On the first day of bidding, the IPO was already subscribed 40.77 times, and by the end of the third and final day on September 4, it had been booked an impressive 201.41 times.
Here are the key subscription details by segment:
– **Overall Subscription**: 201.41 times
– **Retail Portion**: 91.95 times
– **Non-Institutional Investors (NII)**: 414.62 times
– **Qualified Institutional Buyers (QIB)**: 232.54 times
– **Employee Category**: 258.96 times
The price band for the IPO was set between ₹503 and ₹529 per share, with a minimum application amount for retail investors being ₹14,812 (for one lot of 28 shares).
In the grey market, shares of Gala Precision Engineering were trading at a premium of ₹270, signifying a potential listing gain of approximately 51% for investors.
Brokerages such as BP Equities and Choice Broking have given strong recommendations to subscribe, citing the company’s stable financial metrics, positive cash flows, and growth prospects with an expected CAGR growth of 23.3% in revenue over the next two years.
The IPO aimed to raise ₹167.93 crore through a combination of fresh shares and an offer for sale. The proceeds will be utilized for setting up a manufacturing facility in Tamil Nadu and to fund capital expenditures in Maharashtra, among other corporate purposes.
The allotment date is anticipated to be September 5, 2024, while the listing date is scheduled for September 9, 2024.
Investors should always do their own homework or talk to financial experts before deciding where to put their money.
