Company Overview & Business
Gallard Steel Limited situated in Indore, is a engineering company in the steel castings sector. The company is engaged in manufacturing various steel castings including mild steel, SGCI, and low alloy castings, catering primarily to other manufacturers of steel parts . Their customers belong to sectors like infrastructure, heavy engineering, railways, and capital goods. Gallard Steel focuses on providing customized and value-added engineered casting solutions rather than commodity products.
The company has steadily increased its manufacturing capacity and diversified its product offerings over time. Gallard steel aims to be a niche player in the engineering steel casting market, serving both domestic and export clients. The proceeds from the IPO will be used to expand its existing manufacturing facilities, construct a new office building, and repay a part of its debt. This is expected to enhance capacity, improve operating efficiencies, and reduce finance costs, thereby strengthening the overall business fundamentals.
IPO Details
| Item | Details |
|---|---|
| IPO Name | Gallard Steel Limited IPO |
| Exchange | BSE SME |
| Issue Type | Book-built SME IPO |
| Face Value | ₹10 per equity share |
| Price Band | ₹142 – ₹150 per share |
| Total Issue Size | Approx ₹37.50 crore |
| Fresh Issue | Entire issue fresh |
| Lot Size | 2,000 shares (retail) |
| Minimum Retail Investment | ₹3,00,000 |
| Issue Open Date | 19 November 2025 |
| Issue Close Date | 21 November 2025 |
| Basis of Allotment | 24 November 2025 (tentative) |
| Refunds Initiation | 25 November 2025 (tentative) |
| Credit to Demat | 25 November 2025 (tentative) |
| Listing Date | 26 November 2025 (tentative) |
| Listing Platform | BSE SME |
| Lead Manager | Seren Capital Pvt Ltd |
| Registrar | Ankit Consultancy Pvt Ltd |
Grey Market Premium (GMP) Snapshot
Currently, the grey market premium (GMP) for Gallard Steel IPO is negligible or close to zero, indicating a neutral or cautious demand sentiment. GMP for SME IPOs may increase closer to the listing date, but as of mid-November 2025, there is no strong speculative interest or premium signal.
| GMP Date | GMP (Approx) | Sentiment |
|---|---|---|
| 14 Nov 2025 | ₹0 | No active GMP; Neutral |
It is important for investors not to rely solely on GMP trends since these are unregulated and can be highly volatile.
Company Financials (Standalone)
Gallard Steel has demonstrated solid financial performance over the last three fiscal years with growing revenues, stable profitability, and strong return ratios. The company reported a healthy EBITDA margin in the 22-24% range and improving PAT margins. Return on equity and capital employed are robust for an SME issuer, supported by operational efficiencies and a growing order book.
| Particulars | FY22 | FY23 | FY24 (Latest) |
|---|---|---|---|
| Revenue from Operations | ₹56.66 Cr | ₹69.40 Cr | ₹80.08 Cr |
| EBITDA Margin | 23.39% | ~22-24% | ~22-24% |
| PAT | ₹6.90 Cr | ₹7.89 Cr | ₹9.54 Cr (approx) |
| PAT Margin | 11.38% | 11.9% | 13.6% |
| ROE | 43.16% | >30% | >30% |
| ROCE | 26.59% | 16-27% | 15-17% |
| Debt/Equity | 1.19 | 1.60 | 0.90 (improving) |
| Operating Cash Flow | -₹2.02 Cr | ₹1.52 Cr | ₹4.18 Cr |
The company is focused on deleveraging its balance sheet with the IPO proceeds while investing in capacity expansion, which may help sustain growth and profitability.
Key Strengths
- Niche engineered steel casting business with strong customization capabilities.
- Long-term relationships with industrial clients offering repeat business.
- Healthy profitability and return ratios compared to many SME peers.
- Positive operating cash flow in the latest fiscal year.
- Use of IPO funds to expand capacity and reduce debt improves future prospects.
Key Risks
- Listing on BSE SME means relatively low liquidity and potentially higher volatility.
- High minimum investment (~₹3 lakh) could be a barrier for smaller retail investors.
- Cyclical nature of infrastructure and heavy engineering sectors may affect order volumes.
- Business is moderately leveraged; any slowdown could impact financials.
- SME IPO valuation can be sensitive; investor caution is warranted.
Broker Recommendations
Most brokerage and IPO advisory platforms view Gallard Steel IPO as a fundamentally sound but valuation-sensitive SME investment. The company’s strong financial metrics and clear growth plans have earned it a “subscribe with a medium to long-term view” rating from several analysts. However, there is caution about the high retail investment amount and absence of a strong GMP indicating potential for quick listing gains.
Investors interested in SME IPOs with exposure to industrial engineering and value creation through capacity expansion may consider applying, keeping in mind the risks of lower liquidity and cyclical demand.
