Gala Precision Engineering files draft papers with SEBI to raise funds via IPO

livemint.com:

IPOs next week: Two mainboard, 3 SME public issues to keep primary market busy In this offer-for-sale, Promoter Vishanji Harshi Gala will be the primary selling shareholder, intending to divest 3,85,200 equity shares. The remainder of the shares, totaling 2,30,800 equity shares, will be sold by Kirit Vishanji Gala (HUF), Nayna Gala, Satish Kotwani, Hemlata Dhiraj Shah, Dhiraj Nanchand Shah, Urmil Dhiraj Shah, and Rupa Sunil Mehta.

Currently, promoters hold a substantial 74.56 percent stake in the company, with the remaining shares held by the public, including Pooja Unichem LLP. Gala Precision Engineering, known for its precision manufacturing of technical springs such as disc & strip springs (DSS), plans to allocate ₹37 crore from the IPO proceeds towards establishing a new facility in Sriperumbuddur, Tamil Nadu.

This new facility will be dedicated to the production of high tensile fasteners and hex bolts, marking a strategic expansion for the company. Moreover, an amount of ₹11.08 crore will be allocated towards the acquisition of equipment, plant, and machinery in Palghar, Maharashtra, while ₹30 crore will be earmarked for debt repayment.

As of December 2023, the company's outstanding borrowings stand at ₹59.05 crore. Also read: Week Ahead: Macro data, FII mood, global cues among key market triggers as Nifty 50 eyes 22,150+ this week Gala Precision Engineering's diversified DSS products find applications across various sectors, including renewable energy, railways, automobiles, off-highway vehicles, heavy machinery, and electrical and power equipment.