Gala Precision Engineering Limited has released its monitoring agency report for the quarter ended December 31, 2025, providing detailed insights into the utilization of proceeds from its Initial Public Offer. The report, prepared by Crisil Ratings Limited as the monitoring agency, shows systematic deployment of IPO funds across key strategic objectives.

IPO Proceeds Overview

The company's IPO, conducted from September 2 to September 4, 2024, raised gross proceeds of Rs 1,353.40 million through fresh equity issuance. After deducting offer expenses of Rs 141.05 million, the net proceeds available for utilization stood at Rs 1,212.35 million.

Quarterly Utilization Progress

During the quarter ended December 31, 2025, Gala Precision Engineering utilized Rs 69.49 million from the IPO proceeds. The cumulative utilization reached Rs 931.17 million, leaving Rs 422.23 million unutilized as of the quarter end.

Object-wise Fund Deployment

The company has been deploying funds across four primary objects as disclosed in its prospectus:

Setting up New Tamil Nadu Facility: The company allocated Rs 370.00 million for establishing a manufacturing facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu, for producing high tensile fasteners and hex bolts. As of December 31, 2025, Rs 245.85 million has been utilized, with Rs 124.15 million remaining. During the quarter, Rs 47.69 million was deployed towards land development, building construction, plant and machinery, electrical installation, and miscellaneous expenses.

Maharashtra Equipment Purchase: For funding capital expenditure requirements at the Wada, Palghar facility in Maharashtra, Rs 110.69 million was allocated. The company has utilized Rs 83.07 million to date, including Rs 21.80 million during the reported quarter, leaving Rs 27.62 million unutilized.

Debt Repayment: The company had allocated Rs 454.30 million for repayment of certain borrowings, which was fully utilized during the quarter ended September 30, 2024.

General Corporate Purposes: Rs 277.36 million was allocated for general corporate purposes, with only Rs 6.90 million utilized so far, leaving Rs 273.17 million available.

Investment of Unutilized Funds

The company has invested the unutilized proceeds of Rs 422.23 million in fixed deposits across HDFC Bank and YES Bank, earning returns ranging from 6.00% to 8.00%. The total market value of these investments, including accrued interest of Rs 3.97 million, stands at Rs 427.81 million as of the quarter end.

Regulatory Compliance and Approvals

Crisil Ratings Limited confirmed that all utilization aligns with disclosures in the offer document, with no deviations observed. The company has obtained necessary government approvals from various departments including Tamil Nadu Pollution Control Board, Fire and Rescue Services, and Directorate of Industrial Safety and Health for its operations.

The monitoring agency report indicates no material deviations from the original project timelines or cost estimates, with the company maintaining flexibility in machinery procurement as disclosed in the prospectus to adapt to changing business requirements and market conditions.

Gala Precision Engineering Limited has successfully allotted 47,275 equity shares to eligible employees under its Employee Stock Option Plan 2021 (GALA ESOP 2021). The allotment was approved by the company's Nomination and Remuneration Committee through a circular resolution passed on February 6, 2026.

Share Allotment Details

The allotted equity shares carry a face value of INR 10 each and will rank pari-passu with the existing shares of the company in all respects. The company is currently completing formalities for listing these newly allotted equity shares on the stock exchanges.

Impact on Share Capital

Following this allotment, the company's equity share capital has been restructured significantly. The total number of equity shares has increased from 1,27,50,276 to 1,27,97,550, representing the successful exercise of employee stock options under the ESOP 2021 scheme.

ESOP Scheme Framework

The GALA ESOP 2021 scheme covers a total of 1,46,200 equity shares, with the current disclosure relating to the allotment of 47,275 shares. The scheme operates under the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, ensuring compliance with regulatory requirements.

Key Features of the ESOP Plan:

• Exercise Period: Options can be exercised up to 5 years from the date of grant
• Minimum Exercise Price: Not less than face value of INR 10 per equity share
• Vesting: In accordance with GALA ESOP 2021 terms
• Payment Method: Cheque, draft, or other mechanisms as decided by the Board

Regulatory Compliance

The company has filed the necessary disclosures under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, the 10(b) statement was submitted with BSE and NSE on December 23, 2024, along with the application for in-principle approval.

The newly issued shares carry ISIN number INE0RE001014 and are identical in all respects to the existing equity shares of the company. No lock-in provisions apply to these shares, and no additional listing fees are payable for this allotment.