Gala Precision IPO GMP soars on last bidding day; should you apply today?

Gala Precision Engineering IPO ends today: The initial public offering (IPO) of Gala Precision Engineering continues to garner a favourable response from investors, with the issue being oversubscribed 76.61 times so far, led by Non-Institutional Investors (NIIs) who bid for a whopping 208.09 times. The Qualified Institutional Buyer (QIB) category recorded a 5.24 times subscription, while the retail category has been subscribed 60.56 times till 11:27 AM on Wednesday, as per the NSE data. 

Fueling the excitement, Gala Precision Engineering shares are commanding a grey market premium (GMP) of Rs 230, or 43.84 per cent, at the upper end of the IPO price of Rs 529 on Wednesday. A positive GMP for an IPO is usually considered an indicator of strong demand and investor confidence, suggesting that the IPO is likely to list at a price higher than its issue price. It reflects bullish sentiment in the unofficial market before the stock officially trades on the exchange. If the GMP trends hold, shares of Gala Precision Engineering may yield potential listing gains of nearly 34 per cent post-listing.

The three-day subscription window to bid for the Gala Precision Engineering IPO, which opened on Monday, September 2, 2024, is set to conclude today.

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The Gala Precision Engineering IPO is available at a price band of Rs 503-529, with a lot size of 28 shares. Accordingly, investors can bid for a minimum of 28 shares and in multiples thereof. Retail investors need to invest a minimum of Rs 14,812, which covers one lot of 28 shares.

Should you bid for the Gala Precision Engineering IPO?

Several noted brokerages, including Deven Choksey Research, Swastika Investmart, Anand Rathi Research Team, and Choice, have shared their outlook on the public issue of Gala Precision Engineering. READ MORE

Gala Precision Engineering IPO details

With this public issue, Gala Precision Engineering is offering a fresh issue of 2,558,416 equity shares and an offer for sale of 616,000 shares, with a face value of Rs 10 apiece.

Gala Precision Engineering has announced that it raised Rs 50.29 crore from anchor investors in the bidding that closed on August 30, 2024, ahead of the public issue opening.

Following the close of the subscription window, the basis of allotment of Gala Precision Engineering shares is likely to take place on Wednesday, September 4, 2024, and accordingly, the company’s shares will be credited to demat accounts on Friday, September 6, 2024.

Gala Precision Engineering shares are tentatively slated to list on the NSE and BSE on Monday, September 9, 2024.

PL Capital Markets is the book-running lead manager of the Gala Precision Engineering IPO, while Link Intime India is the registrar for the issue.