Gallard Steel IPO: Check GMP, price range, subscription and other details

Pithampur-based steel castings manufacturer Gallard Steel will open its Rs 37.5 crore initial public offering to subscriptions on Wednesday. The issue will remain open until Friday and the company aims to raise new capital to expand its production facilities and strengthen its balance sheet.The IPO, priced between Rs 142 and 150 per share, is entirely a fresh issue of 25 lakh shares. The minimum bid is that retail investors must apply for a minimum of 2,000 shares, which translates to an initial investment of Rs 3 lakh in the higher price band. This could limit participation to relatively larger private investors and high net worth individuals.

Gallard Steel IPO GMP

Ahead of opening day, the IPO is trading at a gray market premium (GMP) of around 7%, indicating expectations of a stable but not aggressive listing. The unofficial market indicates a premium of around Rs 10 over the top end of the price range. Although GMPs are not formal indicators, they often reflect early sentiment among small traders. On Tuesday, the company also allotted shares worth Rs 10.64 crore to ‘anchor investors’, who subscribed to 7.09 lakh shares.

Company overview

Gallard Steel produces engineering steel castings such as mild steel, SGCI and low alloy castings used in railways, defense, power generation and heavy engineering. The components include traction motor parts and bogie assemblies for the Indian Railways, cradle assemblies for defense systems, guide vanes for turbines and high-temperature liners used in industrial machinery. The company operates from a foundry spread over 12,000 sq. ft. in Pithampur, Dhar district, where it undertakes melting, heat treating, casting, grinding and finishing operations entirely in-house. This integrated production model helps the company maintain quality standards and reduce dependence on third-party suppliers. The proceeds from the new issue will be used to expand the current facility, construct an office building and repay part of the existing loans. The company has set aside Rs 20.13 crore for capacity expansion and Rs 7 crore for debt repayment, while the balance will go towards general corporate needs.Financially, the company has shown strong momentum over the past two years. Revenue rose 92% in FY25 to Rs 53.52 crore from Rs 27.86 crore in FY24, while net profit rose to Rs 6.07 crore from Rs 3.20 crore. The September 2025 half-year figures also indicate continued growth, with Rs 32.14 crore in revenues and Rs 4.29 crore in net profit.

Of the 25 lakh shares on offer, 33.28% are reserved for retail investors, 14.40% for non-institutional bidders and 47.32% for qualified institutional buyers. Another 1.25 lakh shares have been reserved for the market maker to maintain liquidity post-listing.

Given the modest GMP and the niche but stable nature of the engineering castings sector, the enrollment trend over the next two days will indicate how investors view the company’s growth prospects and valuation.

The allotment is expected to close on November 24, with a listing scheduled for November 26 on the BSE SME platform.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)