On September 9, 2024, Gala Precision Engineering made a notable debut on the National Stock Exchange (NSE), with its shares hitting the 5% upper circuit limit shortly after listing. This impressive performance has sparked interest among investors looking to buy shares online, following a 36.3% premium over the issue price on the NSE.
IPO overview and details
The Gala Precision Engineering IPO was a significant event, raising ₹167.9 crore through a combination of fresh issuance of 25.58 lakh equity shares and an offer-for-sale (OFS) of 6.16 lakh shares. The IPO price band was set between ₹503 and ₹529 per share, providing an attractive opportunity for those looking to buy shares online.
Listing and market performance
Gala Precision Engineering’s shares made a strong debut, listing at ₹721.1 on the NSE, representing a 36.3% premium over the upper end of the issue price band. The stock’s opening price on the BSE was ₹750, reflecting a substantial 41.7% increase from the issue price. This robust performance made it a prime target for investors seeking to buy shares online.
By 10:00 am, the shares had surged to ₹757.15, hitting the 5% upper circuit limit. This strong upward movement shows a highly positive market response to the IPO. As of 11:05 am, the shares were trading at ₹757.1, still showing a 5% increase from the opening price. For those interested in the stock market, it was an excellent moment to consider buying shares online as Gala Precision Engineering’s market valuation rose to ₹959.31 crore.
Financial and operational highlights
Gala Precision Engineering specialises in manufacturing precision components like technical springs and special fastening solutions, catering to industries such as renewable energy, automobiles, railways, and heavy machinery. For the financial year 2023-24, the company reported ₹202 crore in revenue and a net profit of ₹22.3 crore. Its consistent performance in prior years made it a reliable option for investors seeking to buy shares online.
Subscription details
The IPO saw overwhelming demand, with an overall subscription of 201.44 times. Non-institutional investors (NIIs) subscribed 414.65 times, Qualified Institutional Buyers (QIBs) 232.54 times, and Retail Investors (RIIs) 91.99 times. With such high interest, many retail investors looked to buy shares online to participate in the company’s promising future.
Company presence and export activities
Gala Precision Engineering’s presence extends beyond the domestic market. As of FY 2023-24, the company serves 175 customers across 25 countries, including major markets like Denmark, Germany, China, and the USA. Its global footprint offers further confidence for investors considering buying shares online as the company continues to expand internationally.
Conclusion
Gala Precision Engineering’s impressive debut reflects strong investor interest and confidence. For those looking to buy shares online, the company’s performance and the IPO’s success highlight the potential benefits of investing in this sector. By using online brokerage platforms effectively, investors can take advantage of such opportunities and make informed investment decisions.
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