Gala Precision Engineering’s initial public offering (IPO) is creating a buzz as it nears its final day of subscription on September 4. The IPO, which opened on September 2, has seen a strong response from investors, indicating a promising start and potential for a successful debut.
In the first two days, the IPO has attracted significant interest. On the second day, it was subscribed 52.21 times, according to the Bombay Stock Exchange (BSE). This means the number of shares applied for was much higher than the number available.
Breaking it down:
- Non-Institutional Investors (NIIs): They subscribed 132.93 times their share allocation.
- Retail Investors: They subscribed 44.21 times their share portion.
- Qualified Institutional Buyers (QIBs): They subscribed 5.06 times their share quota.
- Employee Portion: The portion reserved for employees was subscribed 117.89 times.
The first day of bidding showed a subscription rate of 10.84 times, reflecting high investor enthusiasm.
IPO Details
The IPO offers shares at a price range of ₹503 to ₹529 each, with a face value of ₹10. Gala Precision Engineering specializes in making precision engineering components such as disc and strip springs, coil and spiral springs, and special fastening solutions. Anchor investors have already committed ₹50.29 crores before the public offering. The lot size for the IPO is 28 shares, with additional shares available in multiples of 28.
The IPO is structured to cater to various investor categories:
- Qualified Institutional Buyers (QIBs): Up to 50% of the shares are reserved for them.
- Non-Institutional Investors (NIIs): At least 15% of the shares are reserved for them.
- Retail Investors: At least 35% of the shares are reserved for them.
The grey market premium (GMP) for the IPO has surged to ₹230. This means shares are trading ₹230 above the IPO price in the grey market, showing strong investor anticipation for a positive listing. Based on the upper end of the IPO price range and the current GMP, experts estimate the listing price of Gala Precision Engineering shares to be around ₹759 each, indicating a 43.48% increase from the IPO price of ₹529.
The rising GMP and high subscription rates suggest that Gala Precision Engineering’s IPO is likely to succeed. Investors are keenly awaiting the final listing, with many hopeful for strong returns. If you’re considering investing, it’s crucial to review your investment goals and risk tolerance. Despite the positive signs, thorough research and careful thought are advised before making any investment decisions.