Gala Precision Engineering Limited IPO Review
Neutral529-529 · Mainboard
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Analyst Verdict
Gala Precision Engineering Limited IPO
Neutral
IPO at a Glance
Price Band
529-529
Issue Size
168cr
Min. Investment
₹14,812
Opens
2024-08-31
Closes
2024-09-02
Listing
2024-09-07
Category
Mainboard
Key Strengths
✓The company’s manufacturing facilities at Palghar, Maharashtra are certified with international standards such as IATF 16949 for the manufacturing of disc springs, spring band clamps, etc, and ISO 9001:2015 certification for manufacturing and supply of disc springs, brush springs, spiral springs, retractor springs and spring cassette assemblies.
✓It has a significant presence in the DSS market for the renewable industry with ~70% share in the domestic market and ~3% share in the global market.
✓It is a major disc springs manufacturer in the domestic market and has ~10% market share in the Indian disc springs market.
✓It has a ~15% market share in the domestic SFS market for wind turbines.
✓The company has long-standing relationships with OEMs, Tier 1, and channel partner customers ranging from 4 years to more than 15 years.
✓It is a well-established manufacturer of precision engineering components with a diversified product portfolio and diverse Market. disc springs are of high quality meeting German DIN 2093 standards.
Key Risks
⚠The loss of any of the top 10 customers who contribute 47.5% of the sales may adversely affect the business, results of operations, and financial Condition.
⚠The company is involved in a patent infringement suit, and an adverse outcome in this proceeding may adversely affect the business, financial condition, and growth strategy.
⚠It does not have any exclusivity arrangements with the customers and with the suppliers; instead, it relies on purchase orders and forecasts to govern the volume and other terms of product sales.
⚠The company’s 80% of its revenue is dependent on the spring technology segment of the business. Any downturn in the spring technology segment can adversely impact business operations.
⚠The business is dependent on the performance of the application industries such as industrials, renewable energy, and mobility segments.
Frequently Asked Questions
Should I apply for Gala Precision Engineering Limited IPO?
Based on our analysis, our rating for Gala Precision Engineering Limited IPO is: Neutral. Review the full analysis including strengths, risks, and financials on CheckIPO before making a decision.
What are the key risks of Gala Precision Engineering Limited IPO?
The loss of any of the top 10 customers who contribute 47.5% of the sales may adversely affect the business, results of operations, and financial Condition. The company is involved in a patent infringement suit, and an adverse outcome in this proceeding may adversely affect the business, financial condition, and growth strategy. It does not have any exclusivity arrangements with the customers and
What are the strengths of Gala Precision Engineering Limited IPO?
The company’s manufacturing facilities at Palghar, Maharashtra are certified with international standards such as IATF 16949 for the manufacturing of disc springs, spring band clamps, etc, and ISO 9001:2015 certification for manufacturing and supply of disc springs, brush springs, spiral springs, retractor springs and spring cassette assemblies. It has a significant presence in the DSS market for
What is the price band of Gala Precision Engineering Limited IPO?
The price band for Gala Precision Engineering Limited IPO is 529-529. The IPO has closed.
Full Analysis Available
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