Gallard Steel IPO: Forging a Path in the Engineering Sector
The Indian stock market is abuzz with the upcoming Small and Medium Enterprise (SME) Initial Public Offering (IPO) of Gallard Steel Limited. This exciting opportunity invites investors to be part of a company deeply rooted in manufacturing engineered steel castings for critical sectors like Indian Railways, defense, and power generation. Let's delve into what makes Gallard Steel a potential contender in the market and what investors need to know.
Unveiling Gallard Steel Limited: The Company Profile
Established in 2015, Gallard Steel Limited has carved a niche for itself in the manufacturing of high-quality engineered steel castings, including mild steel, SGCI, and low alloy castings. Their expertise lies in delivering ready-to-use components, assemblies, and subassemblies to vital industries across India.
Core Business and Product Portfolio
Gallard Steel is a key supplier for a diverse range of applications. Their product offerings include:
- Steel Components: Manufacturing both unmachined and machined steel parts for various industrial applications.
- Railway Specific Components: Specializing in components for railway traction motors and bogie assemblies, essential for locomotive functionality.
- Defense Sector Solutions: Producing critical parts like cradle assemblies, recoiling cylinders, and trunnion housings for defense applications.
- Power Generation Sub-Assemblies: Developing guide vanes, bush housings, and fork systems for thermal and hydro turbines.
- Industrial Machinery Parts: Supplying high-temperature resistance liners for heavy industrial machinery and equipment.
- Rebonded Foam: Beyond steel, they also produce recycled foam used in furniture, mattresses, and various industrial products, showcasing a diversified approach.
Strategic Advantages
The company highlights several strengths that contribute to its market position:
- Integrated Manufacturing: Boasting in-house manufacturing facilities, which ensures better quality control and operational efficiency.
- Broad Customer Base: Serving a diverse set of clients across various critical industries.
- Extensive Market Reach: Possessing a wide geographical presence within India.
- Rigorous Quality Assurance: Implementing stringent quality control mechanisms to uphold standardized product quality.
Decoding the Gallard Steel IPO: Essential Details
The IPO window for Gallard Steel is approaching. Here’s a concise overview of the key dates, issue specifics, and what it means for potential investors.
IPO Timeline: Mark Your Calendars
Staying updated on the key dates is crucial for any investor.
| Event | Date |
|---|---|
| IPO Open Date | November 19, 2025 (Wednesday) |
| IPO Close Date | November 21, 2025 (Friday) |
| Anchor Bid Date | November 18, 2025 (Tuesday) |
| Tentative Allotment Finalization | November 24, 2025 (Monday) |
| Initiation of Refunds | November 25, 2025 (Tuesday) |
| Credit of Shares to Demat Account | November 25, 2025 (Tuesday) |
| Tentative Listing Date (BSE SME) | November 26, 2025 (Wednesday) |
| UPI Mandate Confirmation Cut-off | 5 PM on November 21, 2025 (Friday) |
IPO Progress Bar:
Note: The progress bar indicates the IPO stage relative to its entire timeline. This is a tentative schedule and dates are subject to change.
Issue Structure and Pricing
The Gallard Steel IPO is structured as a book-built issue.
| Particular | Detail |
|---|---|
| Face Value | ₹10 per share |
| Issue Price Band | ₹142 to ₹150 per share |
| Total Issue Size | 25,00,000 shares (aggregating up to ₹37.50 Cr) |
| Fresh Issue | 25,00,000 shares (₹37.50 Cr) |
| Listing At | BSE SME |
| Book Running Lead Manager | Seren Capital Pvt.Ltd. |
| Registrar | Ankit Consultancy Pvt.Ltd. |
| Market Maker | Asnani Stock Broker Pvt.Ltd. |
Minimum Investment and Lot Size
Investors need to be aware of the minimum application requirements.
| Investor Category | Lots | Shares | Amount (at upper price band) |
|---|---|---|---|
| Individual Retail Investor (Min) | 2 | 2,000 | ₹3,00,000 |
| Individual Retail Investor (Max) | 2 | ₹3,00,000 | |
| S-HNI (Min) | 3 | 3,000 | ₹4,50,000 |
| S-HNI (Max) | 6 | 6,000 | ₹9,00,000 |
| B-HNI (Min) | 7 | 7,000 | ₹10,50,000 |
Note: The minimum investment for retail investors is significantly higher than mainboard IPOs due to the nature of SME IPOs.
Objectives of the Public Issue
Gallard Steel Limited intends to utilize the net proceeds from the IPO for key strategic initiatives:
- Funding capital expenditure towards the expansion of its existing manufacturing facility and the construction of an office building (approx. ₹201.37 Million).
- Repaying a portion of certain existing borrowings of the company (approx. ₹70 Million).
- General corporate purposes.
Understanding the Financial Performance of Gallard Steel
A look into the company's financials provides insights into its growth trajectory and operational efficiency. Gallard Steel has demonstrated robust financial growth recently.
Recent Financial Snapshot (Restated Consolidated)
| Period Ended | Assets (₹ Crore) | Total Income (₹ Crore) | Profit After Tax (₹ Crore) | EBITDA (₹ Crore) | Net Worth (₹ Crore) | Reserves and Surplus (₹ Crore) | Total Borrowing (₹ Crore) |
|---|---|---|---|---|---|---|---|
| 30 Jun 2025 | 503.35 | 321.35 | 42.93 | 74.25 | 213.75 | 143.75 | 191.31 |
| 31 Mar 2025 | 487.73 | 535.24 | 60.67 | 124.72 | 110.28 | 100.82 | 203.79 |
| 31 Mar 2024 | 391.39 | 278.61 | 31.96 | 50.65 | 110.28 | 40.28 | 175.91 |
Analysis: Between the financial year ending March 31, 2024, and March 31, 2025, Gallard Steel Ltd. reported an impressive 92% increase in revenue and a 90% rise in profit after tax (PAT), indicating strong operational performance and growth. The June 2025 quarter also shows continued healthy profitability.
Key Performance Indicators (KPIs)
A quick look at these ratios helps assess the company's efficiency and financial health.
| KPI | Value |
|---|---|
| Return on Equity (ROE) | 43.16% |
| Return on Capital Employed (ROCE) | 26.59% |
| Debt/Equity Ratio | 1.19 |
| Return on Net Worth (RoNW) | 35.51% |
| Profit After Tax (PAT) Margin | 11.38% |
| EBITDA Margin | 23.39% |
Promoter Landscape and Investor Allocation
Understanding who steers the company and how shares are distributed among different investor categories is vital for evaluating an IPO.
Company Promoters
The promoters of Gallard Steel Limited are:
- Zakiuddin Sujauddin
- Hakimuddin Ghantawala
- Kaid Johar Kalabhai
- Zahabiya Kalabhai
- Mariya Zakiuddin Sujauddin
| Holding Type | Percentage |
|---|---|
| Promoter Holding Pre-Issue | 91.14% |
| Promoter Holding Post-Issue | To be calculated post-dilution |
Note: The post-issue promoter holding will be lower due to the dilution from the fresh issue of shares.
Investor Reservation Breakdown
The total issue of 25,00,000 shares is strategically allocated across various investor segments.
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Market Maker Shares | 1,25,000 | 5.00% |
| QIB Shares Offered (Total) | 11,83,000 | 47.32% |
| - Anchor Investor Shares | 7,09,000 | 28.36% |
| - QIB (Ex. Anchor) Shares | 4,74,000 | 18.96% |
| NII (HNI) Shares Offered | 3,60,000 | 14.40% |
| Retail Shares Offered | 8,32,000 | 33.28% |
| Total Shares Offered | 25,00,000 | 100.00% |
Anchor Investor Details
Gallard Steel IPO garnered significant interest from anchor investors, raising a substantial amount prior to the main subscription opening.
| Particular | Detail |
|---|---|
| Anchor Bid Date | November 18, 2025 |
| Shares Offered to Anchor Investors | 7,09,000 |
| Anchor Portion Size (In Crore) | ₹10.64 crore |
| Lock-in Period End Date (50% shares) | December 24, 2025 (30 Days) |
| Lock-in Period End Date (Remaining shares) | February 22, 2026 (90 Days) |
Strategic Outlook: A SWOT Analysis of Gallard Steel
To provide a holistic view, let's consider the internal and external factors that could impact Gallard Steel's future performance.
Strengths (Internal Positives)
- Specialized Manufacturing Expertise: Deep knowledge in engineered steel castings for niche, high-demand sectors like defense and railways.
- Diverse and Critical Client Base: Serving essential industries ensures steady demand and reduces dependence on a single sector.
- In-house Production & Quality Control: Allows for greater control over product quality, cost, and delivery timelines.
- Proven Financial Growth: Recent robust revenue and profit growth indicate operational efficiency and market acceptance.
- Diversified Product Range: Beyond steel components, the inclusion of rebonded foam adds a layer of diversification.
Weaknesses (Internal Negatives)
- Capital Intensive Business: Manufacturing steel castings requires significant capital investment in machinery and infrastructure.
- Reliance on Specific Sectors: While diverse, a large portion of business is tied to government-driven projects (railways, defense), which can be subject to policy changes or budget fluctuations.
- SME Segment Risks: Listing on BSE SME implies higher entry barriers for retail investors (due to large lot sizes) and potentially lower liquidity compared to mainboard listings.
- High Promoter Holding Pre-IPO: While indicating confidence, post-IPO dilution will be a factor to watch.
Opportunities (External Positives)
- "Make in India" Initiative: Government thrust on domestic manufacturing, especially in defense and railways, provides a strong tailwind.
- Infrastructure Development: Ongoing and planned investments in railway expansion, power sector, and heavy engineering will drive demand for components.
- Technological Advancements: Adopting new casting technologies and automation can enhance efficiency and product quality.
- Export Potential: Exploring international markets for specialized steel castings could open new revenue streams.
- Expansion into New Geographies/Sectors: Leveraging existing expertise to cater to other related industries.
Threats (External Negatives)
- Economic Downturns: Industrial manufacturing is sensitive to economic cycles; slowdowns can impact demand.
- Raw Material Price Volatility: Fluctuations in steel, energy, and other input costs can affect profitability.
- Intense Competition: The steel casting industry, especially for railway and defense components, can be competitive with established players.
- Regulatory Changes: Changes in environmental regulations, import/export policies, or industry-specific norms could pose challenges.
- Technological Disruption: New materials or manufacturing processes could potentially displace traditional steel castings in certain applications.
Navigating the IPO Application Process
Applying for an IPO is straightforward with modern digital platforms. Here's how you can participate in the Gallard Steel IPO.
General Application Methods
- UPI (Unified Payments Interface): Many stockbrokers offer direct IPO application through their platforms using your UPI ID for payment. This is a quick and convenient method.
- ASBA (Applications Supported by Blocked Amount): This method allows you to apply through your bank's net banking portal. The application amount is blocked in your account until allotment, ensuring you don't lose interest on the funds.
Applying through a Popular Broker (e.g., Zerodha)
For customers of brokers like Zerodha, the process is streamlined:
- Log in to your broker's Console (their back-office platform).
- Navigate to the 'Portfolio' section and click on the 'IPOs' link.
- Locate 'Gallard Steel IPO' and click the 'Bid' button.
- Enter your UPI ID, the desired Quantity (in multiples of the lot size), and your bid Price (within the price band, or at cut-off).
- Submit your IPO application form.
- Crucially, open your UPI App (e.g., BHIM, Google Pay, PhonePe, or your bank's UPI app) and approve the mandate to finalize the payment.
Evaluating the Gallard Steel IPO: A General Investor's Perspective
Deciding whether to invest in an IPO requires careful consideration of various factors. While no specific recommendation can be given, here are points to ponder:
- Growth Story: The company's recent financial performance shows strong growth, which is a positive indicator.
- Sector Potential: Its involvement in critical infrastructure, defense, and power sectors aligns with India's long-term economic growth drivers.
- Valuation: Evaluate the IPO's price band relative to its earnings, assets, and peer companies in the market. Look for a reasonable valuation that allows for potential listing gains or long-term appreciation.
- SME Segment Risks: Be mindful that SME IPOs typically come with higher investment thresholds and may have lower trading liquidity post-listing compared to mainboard IPOs.
- Management and Governance: Assess the experience and reputation of the management team.
- Utilization of Proceeds: How the company plans to use the IPO funds (expansion, debt reduction) can indicate future growth prospects and financial stability.
It's always recommended to conduct your own thorough due diligence, consider your investment goals, risk tolerance, and consult with a financial advisor before making any investment decisions.
Conclusion: A Look Ahead
Gallard Steel Limited's IPO presents an opportunity to invest in a growing engineering company with a focus on critical sectors. With its robust financial performance, diverse product portfolio, and strategic objectives for growth, it aims to strengthen its position in the market. As the IPO dates draw near, potential investors should carefully review the detailed prospectus and assess if this offering aligns with their investment strategy.
Company and Registrar Information
Gallard Steel Ltd. Contact Details
For further inquiries, you can reach out to the company directly:
- Address: Flat No. 01, Sukhsneh Apartment, 168-M Khatiwala Tank, Indore, Madhya Pradesh, 452014
- Phone: +91-9644422252
- Email: cs@gallardsteel.com
- Website: https://www.gallardsteel.com/
Registrar to the Issue
For any queries regarding application, allotment, or share transfers:
- Name: Ankit Consultancy Pvt.Ltd.
- Phone: 0731 - 491 298 / 492 698
- Email: compliance@ankitonline.com