Gala Precision Engineering Limited, established in February 2009, is a leading manufacturer of precision components, including disc and strip springs (DSS), coil and spiral springs (CSS), and special fastening solutions (SFS). Serving original equipment manufacturers (OEMs), Gala's products are essential in various sectors such as electrical, off-highway equipment, infrastructure, general engineering, and mobility segments, including automotive and railway industries.
With a global presence, Gala Precision Engineering supplies technical springs and high-tensile fasteners to customers across 25 countries, including Germany, Denmark, China, Italy, Brazil, the USA, Sweden, and Switzerland. The company operates through two main divisions: the Springs Technology Division, which produces DSS and Wedge Lock Washers (WLW), and the SFS division, focused on anchor bolts, studs, and nuts.
The company operates two manufacturing facilities in Wada District, Palghar, Maharashtra, and is expanding with a new facility in Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu. This expansion will enhance their high-tensile fastener production capabilities.
As of June 30, 2024, Gala Precision Engineering employs 294 permanent and 390 contract workers, ensuring robust operational capacity across its diverse product portfolio.
Industry Outlook:
- The global DSS & WLW market, valued at approximately $891M in 2023, is projected to grow at a CAGR of 6.1%, reaching around $1,065M by 2026.
- Gala Precision Engineering holds a 2% share in the global DSS market, driven by robust growth in renewable energy, automotive, and infrastructure sectors.
Gala Precision Engineering Limited IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Setting up a new facility at Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu, for manufacturing high tensile fasteners and hex bolts;
- Funding capital expenditure requirements towards the purchase of equipment, plant and machinery at Wada, Palghar, Maharashtra;
- Repayment/ prepayment, in full or part, of certain borrowings availed by the Company; and
- General corporate purposes.
Peer Details
The companies considered by Gala Precision Engineering as its peers include:
- Harsha Engineers International Limited.
- SKF India Limited.
- Sundram Fasteners Limited.
- Rolex Rings Limited.
- Sterling Tools Limited.
- Ratnaveer Precision Engineering Limited
How to apply for Gala Precision Engineering IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Gala Precision Engineering IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
How To Check the Allotment Status of the Gala Precision Engineering Limited IPO?
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- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
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Contact Details of Gala Precision Engineering Limited
Registered office: A-801, 8th Floor, Thane One DIL Complex, Ghodbunder Road Majiwade, Thane (West), Maharashtra, India, 400610
Phone: +91 22-6930 9224
E-mail: investor.relations@galagroup.com
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ million) | 2025.45 | 1,654.65 |
| Profit After Tax (PAT) (in ₹ million) | 223.32 | 242.12 |
| Current Ratio (x) | 1.69 | 1.81 |
| Total Assets (in ₹ million) | 1886.85 | 1,703.86 |
| Total Borrowings (in ₹ million) | 550.27 | 585.98 |
| Return on Equity (%) | 23.59% | 17.28% |
| Return on Capital Employed (RoCE) (%) | 19.91% | 22.93% |
| Earnings Per Share (in ₹) | 21.77 | 23.56 |
Know before investing
Strengths
6Extensive global presence, exporting to over 25 countries with 175+ clients.
Strong market share: 10% in the Indian disc springs market.
In-house design and development capabilities for 200+ precision products.
Robust financial growth: 17.53% CAGR in total income (FY22-24).
Strategic expansion with a new manufacturing facility in Tamil Nadu.
Long-standing customer relationships, some exceeding 15 years, with OEMs.
Risks
6Loss of key customers could impact 32.46% of revenue.
Patent infringement lawsuit threatens ₹94.78 million in revenue.
High dependency on spring technology for 80.11% of revenue.
No long-term contracts with suppliers, affecting raw material availability.
Labour issues could disrupt operations; 294 permanent employees.
Delays in capital expenditure projects risk expansion plans.
