Gala Precision Engineering IPO will open today: Investors can bid till September 4, minimum investment ₹ 14,812

Gala Precision Engineering Limited’s Initial Public Offering (IPO) will open today. Investors will be able to bid for this IPO till September 4. The company’s shares will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on September 9.

Gala Precision Engineering wants to raise a total of ₹167.93 crore through this issue. For this, the company is issuing 2,558,416 fresh shares worth ₹135.34 crore. At the same time, the existing investors of the company are selling 616,000 shares worth ₹32.59 crore through Offer for Sale i.e. OFS.

If you are also planning to invest money in this, then we are telling you how much you can invest in this.

What is the minimum and maximum amount that can be invested?
Gala Precision Engineering has fixed the price band of this issue from ₹503 to ₹529. Retail investors can bid for a minimum of one lot i.e. 28 shares. If you apply for 1 lot as per the upper price band of the IPO of ₹529, then you will have to invest ₹14,812 for it.

At the same time, retail investors can apply for a maximum of 13 lots i.e. 364 shares. For this, investors will have to invest ₹ 192,556 according to the upper price band.

35% of the issue is reserved for retail investors
The company has reserved 50% of the issue for qualified institutional buyers (QIB). Apart from this, 35% is reserved for retail investors and the remaining 15% is reserved for non-institutional investors (NII).

Gala Precision Engineering’s premium in grey market is 45.37%
Before the IPO opening, the company’s stock has reached a premium of 45.37% i.e. ₹ 240 per share in the gray market. In such a situation, according to the upper price band of ₹ 529, its listing can be at ₹ 769. However, this can only be estimated, the listing price of the stock is different from the gray market price.

Gala Precision Engineering was established in February 2009
Gala Precision Engineering Limited was established in February 2009. The company manufactures precision components such as disc and strip springs (DSS), coil and spiral springs (CSS) and special fastening solutions (SFS).

The company’s products are used in electrical, off-highway equipment, infrastructure and general engineering as well as automotive and railway. The company supplies technical springs and high tensile fasteners to several countries including Germany, Denmark, China, Italy, Brazil, the USA, Sweden and Switzerland.

What is IPO?
When a company issues its shares to the general public for the first time, it is called Initial Public Offering or IPO. The company needs money to expand its business. In such a situation, instead of taking a loan from the market, the company raises money by selling some shares to the public or by issuing new shares. For this, the company brings IPO.