Gala Precision Engineering IPO: Precision component manufacturer files draft paper with SEBI
The Mumbai-based precision component manufacturer of technical springs will launch its public offer which will be a mix of issue of fresh equity shares and an offer for sale (OFS).
The face value of shares is Rs 10. The fresh issue comprises up to 25.58 lakh shares and the OFS of up to 6.16 lakh equity shares that will be offloaded by the promoter Group and individual selling shareholders. The offer also includes a reservation for subscription by eligible employees.
Under the OFS, up to 385,200 shares will be offered by Vishanji Harshi Gala while up to 58,600 equity shares by Kirit Vishanji Gala (HUF).
Up to 50,000 equity shares will be sold by Nayna Gala and up to 40,000 equity shares by Satish Kotwani. Others to offer their share will be Hemlata Dhiraj Shah (up to 31,400 shares), Dhiraj Nanchand Shah (28,000 shares), Urmil Dhiraj Shah (12,800 shares) and Rupa Sunil Mehta (up to 10,000 shares).
The offer is being made through the book-building process, wherein up to 50% will be allocated to qualified institutional buyers (QIBs), 15% to non-institutional bidders and 35% to retail individual bidders.
The company will utilise nearly Rs 37 crore from the IPO proceeds for setting up a new facility at Vallam-Vadagal in Tamil Nadu for manufacturing high tensile fasteners and hex bolts. It will use Rs 11.07 crore for funding capital expenditure requirements towards the purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra.
Meanwhile, Rs 30 crore will be used for repayment/prepayment of certain
