Gallard Steel IPO Countdown! Rs 37.5 Cr Fundraise & Massive Expansion Plans Revealed!

Author

Akshat Lakshkar | Whalesbook News Team

Detailed Coverage:

Gallard Steel, an engineering company based in Indore, is set to launch its maiden public issue on November 19, which will close on November 21. The company plans to raise Rs 37.5 crore through an IPO of 25 lakh shares, with a price band fixed at Rs 142 to Rs 150 per share. This offering is entirely a fresh issue, meaning Gallard Steel will issue new shares to raise capital, with no existing shareholders selling their stake. The funds raised will be strategically deployed: Rs 20.73 crore for expanding its manufacturing facility and constructing an office building, Rs 7.2 crore for repaying existing borrowings, and the remaining amount for general corporate needs. Incorporated in 2015, Gallard Steel specializes in manufacturing ready-to-use components, assemblies, and sub-assemblies for critical sectors like Indian railways, defence, and power generation. Financially, the company has demonstrated robust growth. In fiscal year 2025, its profit nearly doubled to over Rs 6 crore, up from Rs 3.2 crore in the previous year. Similarly, revenue from operations doubled to Rs 53.3 crore from Rs 26.8 crore during the same period. For the April-September period of the current year, the company reported a profit of Rs 4.3 crore on a revenue of Rs 31.6 crore. Seren Capital is managing the IPO as the sole merchant banker.

Impact: This IPO offers retail investors a chance to invest in a growing engineering firm catering to defence and railway sectors, potentially boosting investor interest in similar companies and providing liquidity for Gallard Steel's future expansion. Rating: 6/10.

Difficult terms: IPO (Initial Public Offering): The process by which a private company offers its shares to the public for the first time, becoming a publicly traded company. Price Band: A range set by the company and its investment bankers within which investors can bid for shares during the IPO. Fresh Issue: When a company sells new shares to raise money. Offer-for-Sale (OFS): When existing shareholders sell their shares to new investors. Merchant Banker: A financial institution that helps companies with services like underwriting, issuing securities, and providing financial advice. Fiscal Year (FY): A 12-month period used for accounting and financial reporting, which may not coincide with the calendar year. Revenue from Operations: The total income a company generates from its primary business activities, excluding other income.