Gala Precision deploys Rs 89.57 crore of net IPO proceeds

Gala Precision Engineering Limited deployed Rs 89.57 crore of its Rs 121.24 crore net initial public offering proceeds by September 30, 2026, leaving Rs 31.67 crore unutilised. Gala Precision had fully used the allocations for certain borrowings and Wada equipment, while Rs 26.61 crore remained for general corporate purposes.

How has Gala Precision used its net IPO proceeds?

Gala Precision used Rs 89.57 crore of its Rs 121.24 crore actual net proceeds by September 30, 2026. The disclosure accompanied the standalone financial results for the quarter and half year ended September 30, 2026, which the board approved on November 5, 2026.

The offer document proposed Rs 121.41 crore for the stated issue objects, compared with actual net proceeds of Rs 121.24 crore. The Rs 17 lakh difference was in general corporate purposes, where the proposed amount was Rs 27.91 crore and actual proceeds were Rs 27.74 crore; the other three objects retained their allocations.

The IPO was completed on September 9, 2024, through 31,74,416 equity shares issued at Rs 529 each. It comprised a fresh issue of 25,58,416 shares and an offer for sale of 6,16,000 shares, so the utilisation table concerns fresh-issue proceeds rather than proceeds received by selling shareholders.

Which IPO objects has Gala Precision fully funded?

Gala Precision had fully used the Rs 45.43 crore allocated to repayment or prepayment of certain company borrowings by September 30, 2026. This was the largest of the four stated objects and represented more than half of the Rs 89.57 crore total utilisation reported in the table.

Gala Precision also fully deployed Rs 11.07 crore for equipment, plant and machinery at Wada, Palghar, Maharashtra. The completed borrowing-repayment and Wada-equipment objects together accounted for Rs 56.50 crore of spending from net IPO proceeds through September 30, 2026.

For the Vallam-Vadagal facility at SIPCOT, Sriperumbudur, Tamil Nadu, Gala Precision had used Rs 31.94 crore from an allocation of Rs 37.00 crore. The facility is intended to manufacture high-tensile fasteners and hex bolts, with Rs 5.06 crore remaining under that issue object at the reporting date.

General corporate purposes had the lowest utilisation among the four objects, at Rs 1.13 crore out of Rs 27.74 crore of actual proceeds. The Rs 26.61 crore balance under this category made up most of the Rs 31.67 crore aggregate unutilised balance disclosed at September 30, 2026.

Where is Gala Precision’s unutilised IPO money held?

Gala Precision reported Rs 31.67 crore of unutilised IPO proceeds at September 30, 2026, comprising Rs 26.61 crore for general corporate purposes and Rs 5.06 crore for the Tamil Nadu facility. These balances reconcile to the aggregate unutilised amount in the main utilisation table.

A footnote to the table states that Rs 31.49 crore of unutilised IPO proceeds was temporarily invested in fixed deposits and Rs 65 lakh was lying in a monitoring account. Those stated amounts total Rs 32.14 crore, which is Rs 47 lakh above the Rs 31.67 crore unutilised total in the table; the filing does not provide a reconciliation.

The filing describes the fixed-deposit investment as temporary but gives no maturity dates, interest rates or expected deployment dates. It identifies the Rs 5.06 crore facility balance with the Sriperumbudur project, while the larger Rs 26.61 crore balance remains allocated to general corporate purposes.

How does IPO deployment compare with Gala Precision’s financial position?

Gala Precision reported standalone current borrowings of Rs 30.33 crore at September 30, 2026, compared with Rs 34.94 crore at March 31, 2026, a reduction of Rs 4.61 crore. Non-current borrowings were Rs 1.32 crore at September 30, compared with Rs 1.62 crore at March 31, while the IPO table separately records full use of the Rs 45.43 crore borrowing-repayment object.

Property, plant and equipment rose to Rs 92.92 crore at September 30, 2026 from Rs 84.43 crore at March 31, 2026. Capital work-in-progress increased to Rs 9.29 crore from Rs 7.29 crore over the same period, alongside the cumulative Rs 31.94 crore IPO deployment for the Tamil Nadu facility and Rs 11.07 crore for Wada equipment.

For the half year ended September 30, 2026, standalone revenue from operations was Rs 169.12 crore, compared with Rs 134.49 crore in the corresponding 2025 half year. Profit for the period rose to Rs 18.77 crore from Rs 14.97 crore, while net cash from operating activities was Rs 7.07 crore compared with Rs 7.32 crore in the prior-year half year.

During the half year ended September 30, 2026, the Income Tax Department conducted search proceedings at certain company premises. Gala Precision said it had provided details and attended hearings, but that proceedings remained ongoing at the November 5, 2026 approval date and no final order had been received, so any financial-result impact could not then be ascertained.

Conclusion

Gala Precision had used Rs 89.57 crore of Rs 121.24 crore in net IPO proceeds by September 30, 2026, with the borrowing-repayment and Wada equipment allocations fully deployed. The remaining Rs 31.67 crore was concentrated in general corporate purposes, alongside the balance required for the Tamil Nadu high-tensile fastener and hex-bolt facility.

The next disclosed items to watch are deployment of the Rs 5.06 crore remaining for the Vallam-Vadagal facility and use of the Rs 26.61 crore set aside for general corporate purposes. Gala Precision has also disclosed that the Income Tax Department proceedings were unresolved as of November 5, 2026, with no final order or quantified impact available.