Gallard Steel Ltd IPO – SME Board
About the Company
Gallard Steel Ltd is a Mumbai-based engineering company founded in 2015 that makes specialized metal parts for Indian Railways, Defence, and Power sectors. Think of them as creating the “heavy-duty components” that go inside trains, military equipment, and power plants—things like traction motor parts (the electric motor that moves trains), bogie assemblies (the frame under train coaches), defence cradles (platforms for military equipment), and power turbine guide vanes. They use advanced steel casting technology to make these high-precision parts that must meet strict quality and safety standards. The company has prestigious approvals including RDSO Class ‘A’ Foundry Status from Indian Railways and is an approved vendor for defence applications.
What They Do: Manufacture ready-to-use engineered steel components for Railways (75-84% of revenue), Defence, Power Generation, and industrial sectors.
READ FULL DRHP HERE: |DRHP GALLARD|
IPO Details Table
| Detail | Explanation | Data |
|---|---|---|
| IPO Opening Date | Buy shares from | 19 Nov 2025 |
| IPO Closing Date | Last date to apply | 21 Nov 2025 |
| Price Band | Price range for shares | ₹142 – ₹150 |
| Lot Size | Min. shares to buy | 1,000 shares (~₹1,50,000 at upper band) |
| Total Issue Size | Max money raised | ₹37.50 crore |
| Fresh Issue | New shares, money goes to company | ₹37.50 crore (0.25 crore shares = 100%) |
| Offer for Sale (OFS) | Old owners sell shares | ₹0 (None - 100% fresh issue) |
| Total Shares Offered | How many shares | 25 lakh shares |
| Listing Date | Shares start trading | 26 Nov 2025 |
| Listing Exchange | Where shares trade | BSE SME (Small & Medium Enterprise platform) |
| Face Value | Company unit value | ₹10 per share |
| Registrar | Share allocation handler | Ankit Consultancy Private Limited CLICK HERE |
| Book Manager | IPO arranger | Seren Capital Private Limited |
REGISTRAR : ANKIT CONSULTANCY PRIVATE LIMITED
What Will the IPO Money Be Used For?
| Purpose | Amount (₹ Cr) | % of Issue | Explanation |
|---|---|---|---|
| Factory expansion & office building | 20.14 | ~54% | New machinery, expand production capacity |
| Repay existing loans | 7.00 | ~19% | Reduce debt burden |
| General corporate purposes | 10.36 | ~27% | Working capital, daily operations |
Total Fresh Issue: ₹37.50 crore - all money goes to company for growth
IPO Timeline
| Event | Date | What Happens |
|---|---|---|
| Anchor Bidding | 18 Nov 2025 | Big investors bid (₹10.64 Cr raised) |
| IPO Opens | 19 Nov 2025 | Start buying shares |
| IPO Closes | 21 Nov 2025 (5 PM) | Last date to buy shares |
| Allotment Date | 24 Nov 2025 | Find out if you got shares |
| Refunds Issued | 25 Nov 2025 | Get money back if not allotted |
| Shares to Demat | 25 Nov 2025 | Shares show in account |
| Listing Date | 26 Nov 2025 | Market trading starts on BSE SME |
Business Model & Revenue Structure
How Gallard Steel Makes Money:
Manufacturing-Driven B2B Model:
- Company gets custom orders from Railways, Defence, Power companies
- Makes parts based on exact technical drawings and specifications
- Controls entire process: raw material → casting → machining → testing → finished product
- Delivers ready-to-use components directly to customers
Revenue Breakdown by Sector (FY25):
| Sector | % of Revenue | Products | Main Customers |
|---|---|---|---|
| Railways | 75-84% | Traction motor parts, bogie components | Indian Railways vendors, locomotive manufacturers |
| Rebonded Foam | ~20% (FY25) | Industrial foam products | Various industries |
| Defence | Small % | Cradle assemblies, steel castings | Defence contractors |
| Power/Others | Small % | Guide vanes, machinery parts | Power plants, industries |
Geographic Spread: Operating in 14 states + 1 union territory; Madhya Pradesh is the largest market
Key Financial Metrics
| Metric | FY23 | FY24 | FY25 | 6M FY26 (Sep 2025) | What It Means |
|---|---|---|---|---|---|
| Revenue | ₹21.65 Cr | ₹27.86 Cr | ₹53.52 Cr | ₹32.14 Cr | 92% growth in FY25! |
| Profit After Tax | ₹1.14 Cr | ₹3.20 Cr | ₹6.07 Cr | ₹4.29 Cr | 90% profit jump |
| EBITDA | ₹1.89 Cr | ₹5.07 Cr | ₹12.47 Cr | ₹7.42 Cr | Operating profit 146% up |
| EBITDA Margin | 9.2% | 18.2% | 23.4% | 23.5% | Margins expanding rapidly |
| PAT Margin | 5.5% | 11.5% | 11.4% | 13.3% | Each ₹100 sales = ₹11-13 profit |
| ROE | — | — | 43.16% | — | Excellent shareholder returns |
| ROCE | — | — | 26.59% | — | Great capital efficiency |
| Debt-to-Equity | — | — | 1.19 | 0.89 | Moderate debt, declining |
| Net Worth | ₹4.89 Cr | ₹11.03 Cr | ₹17.08 Cr | ₹21.38 Cr | Strong equity base growth |
| Employee Cost (est) | ~₹3-4 Cr | ~₹5-6 Cr | ~₹8-10 Cr | — | About 15-18% of revenue |
| Total Borrowings | — | ₹17.59 Cr | ₹20.38 Cr | ₹19.13 Cr | Debt for expansion |
Key Points:
- Explosive Growth: Revenue nearly doubled in FY25 (92% growth)
- Profit Surge: PAT up 90% year-over-year
- Margin Expansion: EBITDA margin jumped from 9% to 23% in 2 years
- Strong Returns: ROE of 43% is exceptional
- Manageable Debt: D/E of 1.19 is okay for manufacturing
- Low Employee Cost: Only 15-18% of revenue—automated processes
Cost of Acquisition – For Promoters
- Gallard Steel founded from scratch in 2015 by the promoters
- Initial investment: Estimated ₹5-10 crore for factory setup and machinery
- Built organically—no major acquisitions
- Current post-IPO valuation: ₹142.50 crore market cap at upper price band
- Promoter Gain: Approximately 15-30x returns in 10 years
No OFS: This is 100% fresh issue—promoters NOT selling, shows confidence in business
Industry Analysis – Railway & Defence Components
Massive Growth Opportunity:
| Sector | Market Size | Growth Drivers |
|---|---|---|
| Indian Railways | ₹2.4 lakh Cr annual budget | Vande Bharat expansion, metro projects, bullet trains, electrification |
| Defence | ₹5.94 lakh Cr budget (FY26) | “Make in India,” Atmanirbhar Bharat, import substitution |
| Power Sector | ₹3+ lakh Cr investments | Renewable energy, thermal modernization |
| Steel Castings Market | Growing 8-10% annually | Infrastructure boom, manufacturing growth |
Gallard’s Position:
- Among few approved suppliers for Indian Railways critical components
- Defence-cleared vendor—elite club of companies
- Serving growing demand from infrastructure boom
- Well-positioned for government push on domestic manufacturing
Growth & Strengths
Major Strengths:
- Prestigious Approvals
- RDSO Class ‘A’ Foundry Status (Indian Railways)
- Defence vendor approval
- High entry barriers for competitors
- Explosive Financial Growth
- Revenue grew 92% in FY25
- Profit grew 90% in FY25
- Margins expanding (9% to 23% EBITDA margin)
- Government Tailwinds
- Indian Railways expansion
- Defence modernization
- “Make in India” policy
- Infrastructure boom
- Diversified Product Portfolio
- Railways, Defence, Power, Industrial
- Reduces dependency on single sector
- Quality Leadership
- Multi-stage quality checks
- NDT/DT testing (non-destructive testing)
- Consistent product reliability
- Strong Return Ratios
- ROE of 43.16% (exceptional)
- ROCE of 26.59% (very good)
- Better than listed peers
- Low Employee Costs
- Only 15-18% of revenue
- Automated manufacturing
- Good for profit margins
- 100% Fresh Issue
- All IPO money goes to company
- Promoters not selling = confidence
- Used for expansion
Key Risks & Concerns
Major Risks:
| Risk | Why It Matters | Impact |
|---|---|---|
| Heavy Railway Dependence | 75-84% revenue from one sector | If railway orders slow, business hurt badly |
| Customer Concentration | Few large customers = most revenue | Loss of 1-2 big clients = disaster |
| No Firm Commitments | Customers don’t guarantee orders | Revenue can be unpredictable |
| SME Platform | Lower liquidity than mainboard | Harder to sell shares quickly |
| High Minimum Investment | ₹1.5 lakh minimum (1,000 shares) | Not affordable for small investors |
| Raw Material Price Risk | Steel prices volatile | Margin squeeze if costs rise |
| Working Capital Intensive | Needs money for inventory | Cash flow pressure |
| Competition | Other RDSO-approved foundries | Price pressure possible |
Valuation – Is It Expensive?
| Metric | Gallard Steel | Comment |
|---|---|---|
| P/E Ratio (Pre-IPO) | 17.31x | Reasonable for SME growth company |
| P/E Ratio (Post-IPO) | 16.60x | Cheaper after dilution |
| Price-to-Book | 6.15x | Premium but justified by growth |
| EPS (Post-IPO) | ₹9.04 | Good earnings per share |
| Market Cap | ₹142.50 Cr | Small but growing company |
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.