Strong start! Gallard Steel shares list at 49% premium over IPO price on BSE SME platform

In a strong debut on the Dalal Street, shares of Gallard Steel on Wednesday listed with a 48.6% premium. The stock opened at Rs 223 on the BSE SME platform as against the issue price of Rs 150.

The engineered castings manufacturer closed its Rs 37.5 crore SME IPO last week with one of the highest subscription numbers seen on the BSE SME platform this year, driven by outsized demand from non-institutional and retail investors.

The issue, priced at Rs 150 per share, saw an overall subscription of 375.54 times. The non-institutional category led the frenzy with 624.56 times subscription, while the retail book was taken up 351.58 times. Qualified institutional buyers also participated aggressively, subscribing 228.48 times the allotted quota.


The extreme oversubscription has influenced the run-up in unofficial market activity, with the IPO now commanding a GMP in the 38% range, implying a potential listing price of about Rs 205–210 per share, depending on market conditions at opening.

Gallard Steel raised Rs 10.64 crore from anchor investors on November 18. The anchor lock-in for 50% of the shares ends on December 24, while the remainder will be unlocked on February 22.

Business overview

Gallard Steel manufactures engineered steel castings and ready-to-use components for the Indian Railways, defence sector, power generation companies and heavy engineering industries. Its product portfolio spans traction motor parts, bogie components, turbine sub-assemblies, defence cradle systems and specialised high-temperature industrial liners. The company also produces rebonded foam for furniture and industrial usage.

Its manufacturing facility, located in Pithampur (Madhya Pradesh), spans more than 12,000 square metres and is equipped with in-house melting, moulding, machining, heat treatment and finishing capabilities. This backward integration allows the company to maintain quality control and cater to diversified clients across railways, defence and industrial equipment.

Financially, the company has reported strong growth over the past two fiscal years. Revenue rose 92% in FY25 to Rs 53.52 crore, while net profit increased 90% to Rs 6.07 crore. EBITDA nearly doubled to Rs 12.47 crore.

Proceeds from the IPO will be used for expansion of the existing manufacturing facility and construction of an office building (Rs 20.14 crore), repayment of borrowings (Rs 7 crore) and general corporate purposes.

While the company’s financial trajectory and oversubscription have buoyed sentiment in the grey market, its valuation and relatively small equity base post-listing suggest that liquidity and volatility may remain key watch factors.

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