#GallardSteel #SMEIPO #BSEListing #StockMarketDebut #IPOPremium #MadeInIndia #RailwayComponents #Castings #NonInstitutionalInvestors #ManufacturingSector
Mumbai: Shares of Gallard Steel made a spectacular debut on the BSE SME platform on November 26, listing at ₹223.10 apiece. This strong opening marks a significant premium of 48.73% over the IPO’s upper price band of ₹150 per share, instantly valuing the Madhya Pradesh-based company with a market capitalization of nearly ₹212 crore.
The exceptional listing performance exceeded the estimates set by the grey market, which had indicated a premium of around 42%, suggesting a listing price of approximately ₹213 per share. The actual debut at ₹223.10 validates the high investor enthusiasm seen during the bidding process.
🔥 Oversubscription and Investor Frenzy
The ₹37.5-crore Initial Public Offering (IPO), which was a fresh issue of shares, witnessed one of the highest subscription levels on the BSE SME platform this year, underscoring intense investor appetite for companies with strong growth prospects in the Indian manufacturing sector.
The IPO, which was open for three days from November 19 to November 21, was oversubscribed a phenomenal 350 times overall. The demand breakdown by investor category was led by Non-Institutional Investors (NII):
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Non-Institutional Investors (NII): Subscribed nearly 464 times (or 624.56 times as per detailed data), showcasing overwhelming interest from High Net-worth Individuals (HNIs).
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Retail Investors: The portion reserved for individual retail investors saw strong demand, booked over 351.58 times.
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Qualified Institutional Buyers (QIB): The institutional portion was subscribed 228.48 times.
The IPO was priced in a band of ₹142 to ₹150 per share, with a minimum lot size of 1,000 shares, requiring a minimum investment of ₹1.5 lakh at the upper price band.
🏭 Business Overview and Expansion Plans
Gallard Steel, established in 2015, specializes in the manufacturing of engineered cast components and ready-to-use assemblies using various metals like carbon steel, ductile iron, and alloy steels. The company primarily caters to critical infrastructure sectors:
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Railways: Manufactures essential parts for traction motors and bogie assembly components, including stator frames and control arms for railway coaches. The company’s revenue remains heavily concentrated in the Railways segment, contributing over 75% of its total income.
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Defence Sector: Supplies high-precision components such as cradles and recoiling assembly cylinders.
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Power Generation: Manufactures sub-assemblies for thermal and hydro turbines.
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Industrial Machinery: Provides high-temperature resistance liners and other components for general industrial usage.
The company operates its main manufacturing facility in Pithampur, Madhya Pradesh, with additional capacity coming from its subsidiary, Sleeploop India, which operates CNC machining and rebounded foam manufacturing divisions (acquired in February 2024).
Utilisation of IPO Proceeds
The ₹37.5 crore raised through the fresh issue will be deployed for key strategic objectives aimed at scaling operations and improving financial health:
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Manufacturing Expansion: A significant portion of the funds will be used for the expansion of the existing manufacturing facility in Pithampur and the construction of an office building. This expansion is crucial, as the company is currently operating at near-full casting capacity and plans to increase its annual casting capacity from 2,400 Metric Tons (MT) to 6,100 MT.
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Debt Repayment: Proceeds will be utilized for the repayment of certain borrowings, strengthening the company’s balance sheet.
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General Corporate Purposes: The remainder will support routine business operations and strategic initiatives.
The phenomenal listing of Gallard Steel underscores the strong momentum in the Indian SME IPO market, driven by robust investor interest in high-growth manufacturing companies linked to India’s infrastructure and railway sectors.
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Source: BSE Portal
