The initial public offering of Gallard Steel made an impressive debut in the stock markets on Wednesday, November 19, as investors rushed to subscribe to the small and medium enterprise IPO. The company witnessed spectacular demand right from the opening bell, indicating strong market confidence in the steel manufacturer's prospects.
Overwhelming Investor Response
By 1:25 PM on the first day of bidding, Gallard Steel IPO was subscribed 2.18 times, demonstrating robust investor appetite. The issue received bids for 36.36 lakh shares against the total offer size of 16.66 lakh shares available for subscription.
The breakdown of subscription categories reveals interesting patterns. The retail investor segment showed strong confidence with 2.31 times subscription, while non-institutional investors displayed even greater enthusiasm with their portion being booked 4.77 times. Surprisingly, qualified institutional buyers had not placed any bids at this initial stage, though this typically changes as the bidding period progresses.
Strong Grey Market Premium Indicates Listing Gains
The grey market premium for Gallard Steel shares jumped to ₹40 per share, signaling strong secondary market demand even before the official listing. This premium indicates that investors in unofficial markets are willing to pay ₹40 above the issue price, suggesting potential listing gains for successful applicants.
At the prevailing GMP of ₹40, Gallard Steel shares could list at approximately ₹190, representing a premium of 27% over the issue price. The grey market premium serves as a crucial indicator of investor sentiment and their willingness to pay over and above the official issue price.
IPO Details and Fund Utilization
The ₹37.50 crore IPO is structured as a book-built offer consisting entirely of fresh share sales totaling 0.25 crore shares. The company has fixed the price band in the range of ₹142 to ₹150 per share, making it accessible to a wide range of investors.
Investors can participate in the bidding process through lots of 1000 shares each, with retail investors required to apply for at least two lots. The bidding window remains open until Friday, November 21, giving investors additional time to participate in this promising offering.
The company has clear plans for utilizing the raised capital. ₹20.13 crore has been earmarked for funding the expansion of their manufacturing facility and construction of an office building. Another ₹7 crore will be allocated for repayment of certain borrowings, while the remaining amount will be used for general corporate purposes to support ongoing operations and growth initiatives.
Company Background and Future Prospects
Gallard Steel specializes in the manufacturing of S.G. (Ductile) Iron and Grey Cast Iron Castings along with special alloy castings and components. The company primarily serves the automobile sector, positioning it well within India's growing automotive industry.
The company boasts an impressive client portfolio that includes major entities such as Indian Railways, BHEL, and CG Power, among other significant industrial players. These established relationships provide stability and growth visibility for the company's future operations.
Seren Capital is serving as the book-running lead manager for the issue, while Ankit Consultancy has been appointed as the registrar. The Gallard Steel IPO shares are expected to list on the BSE SME platform on November 26, 2025, marking an important milestone in the company's corporate journey.
The strong initial response to Gallard Steel's IPO reflects growing investor confidence in the manufacturing sector and specifically in companies serving India's core industrial segments. With the automotive sector showing consistent growth and infrastructure development gaining momentum, companies like Gallard Steel are well-positioned to benefit from these macroeconomic trends.
