Gala Precision Engineering Reports Steady Progress in IPO Fund Utilization
Gala Precision Engineering Limited has utilized Rs 720.63 crore out of Rs 1,212.35 crore net IPO proceeds as of September 30, 2025. Funds were fully used for repayment of borrowings (Rs 454.30 crore), while significant progress was made in setting up a new Tamil Nadu facility and capital expenditure in Maharashtra. The remaining Rs 491.72 crore is invested in fixed deposits. Crisil Ratings Limited reported no deviations from disclosed objectives.
*this image is generated using AI for illustrative purposes only.
Gala Precision Engineering Limited has released its monitoring agency report for the quarter ended September 30, 2025, detailing the utilization of proceeds from its Initial Public Offering (IPO) conducted in September 2024. The report, issued by Crisil Ratings Limited, indicates that the company is making steady progress in deploying funds across its planned objectives.
IPO Proceeds and Allocation
The company raised Rs 1,353.40 crore through its IPO, with net proceeds of Rs 1,212.35 crore after deducting issue expenses. The funds were earmarked for four main objectives:
- Setting up a new facility in Tamil Nadu (Rs 370.00 crore)
- Funding capital expenditure in Maharashtra (Rs 110.69 crore)
- Repayment of borrowings (Rs 454.30 crore)
- General corporate purposes (Rs 277.36 crore)
Utilization Progress
As of September 30, 2025, Gala Precision Engineering has utilized Rs 720.63 crore of the IPO proceeds. The breakdown of utilization is as follows:
| Objective | Allocation (Rs crore) | Utilized (Rs crore) | Unutilized (Rs crore) |
|---|---|---|---|
| New facility in Tamil Nadu | 370.00 | 198.16 | 171.84 |
| Capital expenditure in Maharashtra | 110.69 | 61.27 | 49.42 |
| Repayment of borrowings | 454.30 | 454.30 | 0.00 |
| General corporate purposes | 277.36 | 6.90 | 270.46 |
| Total | 1,212.35 | 720.63 | 491.72 |
Key Highlights
- The company has fully utilized the allocated funds for repayment of borrowings.
- Significant progress has been made in setting up the new facility in Tamil Nadu, with over 53% of the allocated funds utilized.
- Capital expenditure plans in Maharashtra are advancing, with about 55% of the allocated funds deployed.
- The majority of funds for general corporate purposes remain unutilized, providing flexibility for future needs.
Investment of Unutilized Funds
The remaining Rs 491.72 crore of unutilized proceeds are primarily invested in fixed deposits with HDFC Bank and YES Bank. These investments are spread across multiple fixed deposits with varying maturity dates and interest rates, ensuring liquidity and returns on the idle funds.
Compliance and Monitoring
Crisil Ratings Limited, acting as the monitoring agency, reported no deviations from the disclosed objectives. The company's Audit Committee has reviewed the fund utilization, and no comments or concerns were raised by either the committee or the auditors.
Looking Ahead
As Gala Precision Engineering continues to deploy its IPO proceeds, investors can expect further updates on the progress of its new facility in Tamil Nadu and the capital expenditure initiatives in Maharashtra. The company's strategic use of funds and careful investment of unutilized proceeds demonstrate a balanced approach to growth and financial management.
The next quarterly report will provide further insights into the company's progress and any potential accelerations in fund utilization for its ongoing projects.
Historical Stock Returns for Gala Precision Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.41% | +6.27% | +9.86% | -10.58% | -30.83% | +4.73% |
20
