Gala Precision IPO listed @ Rs. 721.10

September 9, 2024 admin Leave a replyPost Comment

Gala Precision IPO GMP date review price allotment details @ Chanakyanipothi.com,

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What is the business of Gala Precision?

Gala Precision Engineering a leading precision component manufacturer of technical springs like disc & strip springs (“DSS”) including wedge lock washers; coil & spiral springs (“CSS”) and special fastening solution (“SFS”) supplying to original equipment manufacturers (“OEMs”), Tier 1 and channel partners; used in sectors like renewable energy including wind turbine and hydro power plants, various industrial sectors such as electrical, off highway equipments, infrastructure and general engineering, mobility segments such as automotive and railways. Our technical springs and high tensile fasteners have been supplied to customers in countries such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, Switzerland etc.

Accordingly, we are a key link in the global supply chain for OEMs. Its customers include global OEMs, tier 1 and channel partners across the sectors such as John Deere India Private Limited, Faiveley Transport Rail Technologies India Private Limited (a Wabtec Company), Brembo Brake India Private Limited, BUFAB India Fasteners Private Limited, Altra Industrial Motion India Private Limited, Endurance Technologies Limited, Enercon GmbH, EXEDY Clutch India Private Limited, Hitachi Astemo Chennai Private Limited, L&T Electrical & Automation Products (a unit of Schneider Electric Private Limited), LPS Bossard Private Limited, MSL Driveline Systems Limited, SAL Automotive Limited, Schaeffler India Limited, Turbo Energy Private Limited, Vestas Wind Technology India Private Limited, Wuerth Industrial Services India Private Limited etc. It is  recognised for its high quality, reliability, and design partnership and this has helped us to establish long standing relationships with global customers.

Product Portfolio

Its business primarily comprises of (i) springs technology division, under which it manufactures DSS including wedge lock washers (“WLW”), CSS and (ii) SFS in which we manufacture anchor bolts, studs and nuts. Its DSS products find applications in renewable energy, railways, automobiles, off highway vehicles, heavy machinery, electrical and power equipments. The global DSS market is valued at ~ US$ 630M in calendar year 2023 witnessing a CAGR of ~6% during calendar year 2020 – 2023 in which it has a global market share of ~2% as of calendar year 2023. It is major disc springs manufacturer in domestic market and have ~10% market share in the Indian disc springs market. it has a significant presence in the DSS market for renewable industry with ~70% share in the domestic market and ~3% share in the global market. 

Plants & Products

It manufactures strip springs customised for high fatigue applications. It is mainly competing with Muhr und Bender KG, Schnorr GmbH, Christian Bauer GmbH + Co. KG in the global disc springs market and with International Industrial Springs in disc springs in India. 
Its CSS products are used in commercial vehicles, passenger vehicles, railways and industrial infrastructure. it has positioned ourselves as a key import substitution for European springs suppliers and multinationals looking at PLI Schemes and other incentives offered by the Government. We have also entered in a new related product category called retractor springs. These springs are a critical component for safety of the passenger. It is mainly competing with Stumpp Schuele & Somappa Springs Private Limited, NHK Springs India Limited, and Muhr und Bender KG in the CSS market.

Under its SFS, we manufacture make to order fasteners in the form of studs, anchor bolts and nuts which has end use applications in renewable energy, railways, off-highway vehicles, electrical and heavy machinery industries. The global fasteners market size stands at ~US$ 97 bn growing at a ~6.7% CAGR between calendar year 2023 – 2026 in which global wind turbine OEM market is valued at ~US$ 75 billion in calendar year 2023 which is growing at a CAGR of ~8% between calendar year 2023 – 2026. It has ~15% market share in the domestic SFS market for wind turbines. It has good growth prospects in the European and US wind turbine markets with the global wind turbine market growing at a CAGR of ~8% between calendar year 2023 – 2026.

It is mainly competing with Cooper & Turner Limited, Rose Holm A/S, August Friedberg GmbH in the global SFS market and with Randack Fasteners India Private Limited, Sundram Fasteners Limited and Hiten Fasteners Private Limited in the Indian SFS market.

Major Markets

It operates from two manufacturing facilities located in Wada, Palghar, Maharashtra. Further, it is setting up new manufacturing facility in Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadu for developing various high tensile fasteners in order to add to its existing product portfolio and new products like bolts.
With a global clientele exceeding 175 customers, it exports to over 25 countries, encompassing major markets such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, Switzerland, contributing 41.20% to total sales as of September 30, 2023. Further, it is adding new customers for springs and fasteners in high potential markets such as Europe and USA.

For more information, click www.galagroup.com 

Gala Precision IPO GMP, Particulars & Guidance

Gala Precision IPO Guidance

Gala Precision Engineering a leading precision component manufacturer of technical springs like disc & strip springs (“DSS”) including wedge lock washers; coil & spiral springs (“CSS”) and special fastening solution (“SFS”) supplying to original equipment manufacturers (“OEMs”), Tier 1 and channel partners; used in sectors like renewable energy including wind turbine and hydro power plants, various industrial sectors such as electrical, off highway equipments, infrastructure and general engineering, mobility segments such as automotive and railways. Our technical springs and high tensile fasteners have been supplied to customers in countries such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, Switzerland etc.
Size: The size of this mainboard IPO is very small and HNI portion is only Rs. 25.19 crore whereas retail portion can get one time subscribed by just 39680 applications.Considering Investor Euphoria at present, the IPO may get highly oversubscribed.
Guidance: Financial performance of last 3 years is okay and the shares are offered at reasonable valuation, compared to its peer companies. The company has strong balancesheet and its debt-equity ratio prior to the IPO is just 0.53. Small applications be made.

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Gala Precision IPO GMP date review price allotment details