Gallard Steel Ltd IPO
Status: Closed
Overview
IPO date
19 Nov 2025 to 21 Nov 2025
Face value
₹ 10 per share
Price
₹ 142 to ₹150 per share
Issue Size
2,500,000 shares
(aggregating up to ₹ 37.5 Cr)
(aggregating up to ₹ 37.5 Cr)
Allotment Date
24 Nov 2025
Listing at
NSE
Issue type
Book Building - SME
Sector
Castings, Forgings & Fastners
Objectives of Gallard Steel Ltd IPO
Gallard Steel Ltd IPO Strategy
About Gallard Steel Ltd
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T&C*
Strengths vs Risks of Gallard Steel Ltd
Know the pros & cons
Strengths
In-house manufacturing facilities.- Diverse Customer base.
- Wide Geographical reach.
- Stringent quality control mechanism ensuring standardized product quality.
Risks
- The company derives a significant portion of the revenue from the sale of traction motors and bogie assembly components to the railway sector and any decline in their demand may adversely affect its business, results of operations and financial condition.
- Substantial portion of the revenue has been dependent upon few customers with which its do not have any firm commitments. The loss of any one or more of the major customers would have a material adverse effect on its business, cash flows, results of operations and financial conditions.
- The Company does not have long-term agreements with suppliers for the input materials and a significant increase in the cost of, or a shortfall in the availability, or deterioration in the quality, of such input materials could have an adverse effect on its business and results of operations.
- There are outstanding legal proceedings involving the Company, Subsidiary, Directors and Promoters. Any adverse decisions could impact its cash flows and profit or loss to the extent of demand amount, interest and penalty, divert management time and attention and have an adverse effect on the business, prospects, results of operations and financial condition.
- Our Company and certain of its Directors have been subject to proceedings before the Hon'ble National Company Law
Tribunal ("NCLT") in connection with compounding application filed by our Company for violation of Section 185 of the
Companies Act, 2013, which may result in monetary penalties and could adversely affect our financial condition and
reputation.
- Its business operations are majorly concentrated in certain geographical regions and any adverse developments affecting its operations in these regions could have a significant impact on the revenue and results of operations.
- The company does not own the existing manufacturing facility & registered office from which the carry out its business activities. In case of non-renewal of lease agreements or dispute in relation to use of the said premise, the business and results of operations can be adversely affected.
- Expansion of the manufacturing facility requires substantial capital outlay before its realize any benefits or returns on investments.
- Any disruptions or shutdown of the manufacturing operations at the existing facility could have an adverse effect on the business, financial condition and results of operations.
- The company requires certain approvals, licenses, registrations and permits to operate its business and failure to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate the business may adversely affect its operations and financial conditions.
- There have been instances of delays and non-deposit of certain statutory dues, including ESIC, PF and Professional Tax. Any cognizance being taken by respective authorities on non-compliance in payment of statutory obligations may result in penalties, interest liabilities, or regulatory actions, which could adversely impact the business, financial condition, results of operations and cash flows.
- One of the promoter, Kaid Johar Kalabhai, was disqualified from being a director by MCA in the past for period from November 01, 2016 to October 31, 2021.
- The company intend to utilize a portion of the Net Proceeds for funding the capital expenditure requirements. While its have shortlisted vendors and obtained quotations from them, Its yet to place orders or enter into definitive agreements with the vendors in relation to such capital expenditure requirements, except for the Horizontal Center Nexus 8800 machine.
- Its failures to identify and understand evolving industry trends and preferences and to develop new products to meet its customers' demands may materially adversely affect the business.
- Trade receivables form a major part of the current assets and net worth. Failure to manage its trade receivables could have an adverse effect on the net sales, profitability, cash flow and liquidity.
- The Company had negative cash flows in the past, details of which are given below. Sustained negative cash flow could impact its growth and business.
- The company insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on the business.
- Under-utilization of the manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on the business, future prospects and future financial performance.
- Any failures to accurately forecast demand for the products and accordingly manage the inventory, may have an adverse effect on its business, cash flows, financial condition and results of operations.
- The Company is in use of trademark, which is not registered under the Trademarks Act, 1999 as on date of Draft Red Herring Prospectus. Thus, its may be subject to claims alleging breach of third party intellectual property rights.
- The company is dependent upon the experience and skill of the Promoters, Key Managerial Personnel and Senior Management Personnel for conducting its business and undertaking our day-to-day operations. The loss of or its inability to retain, such persons could materially and adversely affect the business performance. In addition, excess rate of attrition amongst the personnel engaged by the Company may have an adverse impact on the business operations.
- There are certain non-compliances made by the Company in respect of the provisions of Companies Act, 2013. Any penalty or action taken by regulatory authorities in the future for these or other corporate or legal non-compliances could impact the financial position of the Company.
- The company have in the past entered into related party transactions and may continue to do so in the future.
- The company operates in a competitive industry and increased competition may lead to a reduction in the revenues, reduced profit margins or a loss of market share.
- Changes in technology may render the current technologies obsolete or require it to make substantial investments.
- Adverse publicity regarding the products could negatively impact it.
- If the company is not able to successfully manage its growth, our business and results of operations may be adversely affected.
- The average cost of acquisition of Equity Shares by the Promoters could be lower than the Issue price.
- The Promoters or directors do not possess experience in managing publicly listed companies.
- Its industry is labour intensive and the business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by the employees or those of the suppliers.
- The company is majorly dependent on third-party logistics service providers for the transportation of raw materials and finished products.
- The company operations are subject to high working capital requirements. Its inability to maintain an optimal level of working capital required for the business may impact the operations adversely.
- The Promoters (including Promoter Group), Directors, KMP's and Senior Management Personnel hold 95.14% of the Equity Shares of the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
- The company has incurred significant indebtedness which exposes it to various risks which may have an adverse-affect on its business and results of operations.
- Fraud, theft, employee negligence or similar incidents may adversely affect the results of operations and financial condition.
- The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect the financial condition, results of operations and reputation.
- Loans availed by the Company has been secured on personal guarantees of the Promoters. The company business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by the Promoters.
- The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
- The Company engages contract labour at its manufacturing facility and its may be liable for or exposed to litigations, sanctions, penalties or losses arising from accidents or damages caused by the workers or contractors.
- Its subject to the restrictive covenants of banks in respect of the Loans/ Credit Limits and other banking facilities availed from them.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- The Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency.
- Information relating to the production capacities and the historical capacity utilization of its production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off and future production and capacity utilization may vary.
- Its ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Certain key performance indicators for certain listed industry peers included in this Draft Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- The Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Any future issuance of Equity Shares may dilute your shareholdings and sale of the Equity Shares by its major shareholders may adversely affect the trading price of the Equity Shares.
- Certain data mentioned in this Draft Red Herring Prospectus has not been independently verified.
- One of our promoter, Mr. Kaid Johar Kalabhai, was disqualified from being a director by MCA in the past for period from
November 01, 2016 to October 31, 2021.
- Our Company had negative cash flows in the past, details of which are given below. Sustained negative cash flow could
impact our growth and business.
- Any disruptions or shutdown of our manufacturing operations at our existing facility could have an adverse effect on our
business, financial condition and results of operations.
- We require certain approvals, licenses, registrations and permits to operate our business and failure to obtain or renew
them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate our business
may adversely affect our operations and financial conditions.
- There have been instances of delays and non-deposit of certain statutory dues, including ESIC, PF and Professional Tax.
Any cognizance being taken by respective authorities on non-compliance in payment of statutory obligations may result
in penalties, interest liabilities, or regulatory actions, which could adversely impact our business, financial condition,
results of operations and cash flows.
- We intend to utilize a portion of the Net Proceeds for funding our capital expenditure requirements. While we have
shortlisted vendors and obtained quotations from them, we are yet to place orders or enter into definitive agreements with
the vendors in relation to such capital expenditure requirements, except for the Horizontal Center Nexus 8800 machine.
- Dependence on third-party job work to meet excess production demands may adversely impact our operations and
financial performance.
- Past Delays in Statutory Filings with the Registrar of Companies and Associated Regulatory Risks
- We are subject to strict quality requirements and any failure to comply with quality standards may lead to cancellation of
existing and future orders, product recalls, product liability, warranty claims and other disputes and claims.
- Our failure to identify and understand evolving industry trends and preferences and to develop new products to meet our
customers' demands may materially adversely affect our business.
- Trade receivables form a major part of our current assets and net worth. Failure to manage our trade receivables could
have an adverse effect on our net sales, profitability, cash flow and liquidity.
- Our insurance coverage may not be adequate to protect us against certain operating hazards and this may have a material
adverse effect on our business.
- Under-utilization of our manufacturing capacities and an inability to effectively utilize our expanded manufacturing
capacities could have an adverse effect on our business, future prospects and future financial performance.
- Certain statutory registration certificates, which including the Professional Tax registration certificates, is currently not
traceable.
- Any failure to accurately forecast demand for our products and accordingly manage our inventory, may have an adverse
effect on our business, cash flows, financial condition and results of operations.
- Our Company is in use of trademark, which is not registered under the Trademarks Act, 1999 as on date of Red Herring
Prospectus. Thus, we may be subject to claims alleging breach of third party intellectual property rights.
- We are dependent upon the experience and skill of our Promoters, Key Managerial Personnel and Senior Management
Personnel for conducting our business and undertaking our day-to-day operations. The loss of or our inability to retain,
such persons could materially and adversely affect our business performance. In addition, excess rate of attrition amongst
the personnel engaged by our Company may have an adverse impact on our business operations.
- There are certain non-compliances made by our Company in respect of the provisions of Companies Act, 2013. Any
penalty or action taken by regulatory authorities in the future for these or other corporate or legal non-compliances could
impact the financial position of the Company.
- We have in the past entered into related party transactions and may continue to do so in the future.
- We operate in a competitive industry and increased competition may lead to a reduction in our revenues, reduced profit
margins or a loss of market share.
- Changes in technology may render our current technologies obsolete or require us to make substantial investments.
- Adverse publicity regarding our products could negatively impact us.
- If we are not able to successfully manage our growth, our business and results of operations may be adversely affected.
- The average cost of acquisition of Equity Shares by our Promoters could be lower than the Issue price.
- Our Promoters or directors do not possess experience in managing publicly listed companies.
- Our industry is labour intensive and our business operations may be materially adversely affected by strikes, work
stoppages or increased wage demands by our employees or those of our suppliers.
- Our company is majorly dependent on third-party logistics service providers for the transportation of raw materials and
finished products.
- Our operations are subject to high working capital requirements. Our inability to maintain an optimal level of working
capital required for our business may impact our operations adversely.
- Our Promoters (including Promoter Group), Directors, KMP's and Senior Management Personnel hold 91.14% of the
Equity Shares of our Company and are therefore interested in the Company's performance in addition to their
remuneration and reimbursement of expenses.
- We have incurred significant indebtedness which exposes us to various risks which may have an adverse-affect on our
business and results of operations
- Fraud, theft, employee negligence or similar incidents may adversely affect our results of operations and financial
condition.
- We could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely
affect our financial condition, results of operations and reputation.
- Loans availed by our Company has been secured on personal guarantees of our Promoters. Our business, financial
condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal
guarantees provided by our Promoters.
- We have not identified any alternate source of funding and hence any failure or delay on our part to mobilize the required
resources or any shortfall in the Issue proceeds may delay the implementation schedule.
- Our Company engages contract labour at its manufacturing facility and we may be liable for or exposed to litigations,
sanctions, penalties or losses arising from accidents or damages caused by our workers or contractors.
- We are subject to the restrictive covenants of banks in respect of the Loans/ Credit Limits and other banking facilities
availed from them.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior
shareholders' approval.
- The Objects of the Issue for which funds are being raised, are based on our management estimates and have not been
appraised by any bank or financial institution or any independent agency.
- Information relating to our production capacities and the historical capacity utilization of our production facilities
included in this Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off and
future production and capacity utilization may vary.
- Our ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital
requirements and capital expenditures.
- Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have been
sourced from public sources and there is no assurance that such financial and other industry information is complete.
- There is no monitoring agency appointed by Our Company to monitor the utilization of the Issue proceeds.
- Our Promoter and the Promoter Group will jointly continue to retain majority shareholding in our Company after the
issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Any future issuance of Equity Shares may dilute your shareholdings and sale of the Equity Shares by our major
shareholders may adversely affect the trading price of our Equity Shares.
- Certain data mentioned in this Red Herring Prospectus has not been independently verified.
- There can be no assurance that the Equity Shares offered through this Issue will be listed on the SME Platform of BSE.
Gallard Steel Ltd Peer Comparison
Understand the company’s industry standing
Gallard Steel Ltd
Nitin Castings Ltd
Pritika Engineering Components Ltd
Face Value
10
5
5
Standalone / Consolidated
Standalone
Standalone
Standalone
Total Income Rs. Cr.
53.524
154.4784
117.6596
EPS-Basis
8.67
24.14
2.18
EPS-Diluted
8.67
24.14
2.18
NAV Per Share
---
---
---
P/E-Basic EPS
---
20.33
39.22
P/E-Diluted EPS
---
---
---
RONW(%)
35.51
15.03
12.63
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
Get your allotment status
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The IPO opens on 19 Nov 2025 & closes on 21 Nov 2025.
Gallard Steel Limited was incorporated as a limited Company on April 9, 2015 with the Registrar of Companies, Gwalior, Madhya Pradesh. Gallard Steel is an engineering company engaged into manufacturing of ready-to-use components, assemblies, and sub assemblies for Indian railways, defence, power generation and allied industries. The product portfolio includes critical components such as traction motor components and bogie assembly components for railway sector, sub-assemblies for thermal and hydro turbines used in power generation sector and components for industrial machinery, equipment and defence sector. These components are manufactured using unmachined and machined castings made from metals including carbon steel, ductile iron, grey cast iron and medium and low alloy steels. Clientele primarily comprises companies operating in the heavy engineering, railways and defence sector.
In the railway sector, Company supply components for the production of traction motors and bogie assemblies, including control arms
for FIAT LHB coaches, stator frames for various motors used by railways for manufacturing of traction motors serving railway and heavy engineering industries. In defence sector, it manufacture components such as cradles and recoiling assembly cylinders for government defence production units. In power generation sector, it manufacture guide vanes, bush housings and fork systems for heavy engineering companies, which are used in hydro and thermal power generation. In components for industrial machinery and equipment, it manufacture High Temperature Resistance Liner and other components. The Company has acquired Sleeploop India Private Limited, making it a wholly-owned subsidiary of the Company in 2024.
The manufacturing operations are carried out at their foundry located in Pithampur, in Dhar district of Madhya Pradesh. The Company is ISO9001:2015 certified, while it support processes such as melting, heat treatment, grinding, molding, sand mixing and finishing. Gallard Steel holds Class A' Foundry Status from the Research Designs and Standards Organization (RDSO), Ministry of Railways, confirming compliance with IS: 12117:1996 (Reaffirmed 2022). In addition, Company has been approved by the competent authority under Indian Railways for capacity-cum-capability assessment to develop, manufacture and supply various critical components for electric locomotives and traction motors, including Suspension Tubes, Axle Boxes, Gear Cases, Axle Box housing and Control Arms. It is also an approved vendor for supplying critical components for defense applications, including Cradle Assemblies and Steel Castings, as per specific technical requirements.
Company is planning 30,00,000 Fresh Issue of Equity Shares by way of IPO.
Gallard Steel Ltd IPO will close on 21 Nov 2025.
- In-house manufacturing facilities.
- Diverse Customer base.
- Wide Geographical reach.
- Stringent quality control mechanism ensuring standardized product quality.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Zakiuddin Sujauddin | 720312 | 10.29 | 720312 | 7.58 |
| 2 | Hakimuddin Ghantawala | 1400000 | 20 | 1400000 | 14.74 |
| 3 | Kaid Johar Kalabhai | 2138250 | 30.55 | 2138250 | 22.51 |
| 4 | Zahabiya Kalabhai | 1750 | 0.03 | 1750 | --- |
| 5 | Mariya Zakiuddin Sujauddin | 2119688 | 30.28 | 2119688 | 22.31 |
- The company derives a significant portion of the revenue from the sale of traction motors and bogie assembly components to the railway sector and any decline in their demand may adversely affect its business, results of operations and financial condition.
- Substantial portion of the revenue has been dependent upon few customers with which its do not have any firm commitments. The loss of any one or more of the major customers would have a material adverse effect on its business, cash flows, results of operations and financial conditions.
- The Company does not have long-term agreements with suppliers for the input materials and a significant increase in the cost of, or a shortfall in the availability, or deterioration in the quality, of such input materials could have an adverse effect on its business and results of operations.
- There are outstanding legal proceedings involving the Company, Subsidiary, Directors and Promoters. Any adverse decisions could impact its cash flows and profit or loss to the extent of demand amount, interest and penalty, divert management time and attention and have an adverse effect on the business, prospects, results of operations and financial condition.
- Our Company and certain of its Directors have been subject to proceedings before the Hon'ble National Company Law Tribunal ("NCLT") in connection with compounding application filed by our Company for violation of Section 185 of the Companies Act, 2013, which may result in monetary penalties and could adversely affect our financial condition and reputation.
- Its business operations are majorly concentrated in certain geographical regions and any adverse developments affecting its operations in these regions could have a significant impact on the revenue and results of operations.
- The company does not own the existing manufacturing facility & registered office from which the carry out its business activities. In case of non-renewal of lease agreements or dispute in relation to use of the said premise, the business and results of operations can be adversely affected.
- Expansion of the manufacturing facility requires substantial capital outlay before its realize any benefits or returns on investments.
- Any disruptions or shutdown of the manufacturing operations at the existing facility could have an adverse effect on the business, financial condition and results of operations.
- The company requires certain approvals, licenses, registrations and permits to operate its business and failure to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate the business may adversely affect its operations and financial conditions.
- There have been instances of delays and non-deposit of certain statutory dues, including ESIC, PF and Professional Tax. Any cognizance being taken by respective authorities on non-compliance in payment of statutory obligations may result in penalties, interest liabilities, or regulatory actions, which could adversely impact the business, financial condition, results of operations and cash flows.
- One of the promoter, Kaid Johar Kalabhai, was disqualified from being a director by MCA in the past for period from November 01, 2016 to October 31, 2021.
- The company intend to utilize a portion of the Net Proceeds for funding the capital expenditure requirements. While its have shortlisted vendors and obtained quotations from them, Its yet to place orders or enter into definitive agreements with the vendors in relation to such capital expenditure requirements, except for the Horizontal Center Nexus 8800 machine.
- Its failures to identify and understand evolving industry trends and preferences and to develop new products to meet its customers' demands may materially adversely affect the business.
- Trade receivables form a major part of the current assets and net worth. Failure to manage its trade receivables could have an adverse effect on the net sales, profitability, cash flow and liquidity.
- The Company had negative cash flows in the past, details of which are given below. Sustained negative cash flow could impact its growth and business.
- The company insurance coverage may not be adequate to protect it against certain operating hazards and this may have a material adverse effect on the business.
- Under-utilization of the manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on the business, future prospects and future financial performance.
- Any failures to accurately forecast demand for the products and accordingly manage the inventory, may have an adverse effect on its business, cash flows, financial condition and results of operations.
- The Company is in use of trademark, which is not registered under the Trademarks Act, 1999 as on date of Draft Red Herring Prospectus. Thus, its may be subject to claims alleging breach of third party intellectual property rights.
- The company is dependent upon the experience and skill of the Promoters, Key Managerial Personnel and Senior Management Personnel for conducting its business and undertaking our day-to-day operations. The loss of or its inability to retain, such persons could materially and adversely affect the business performance. In addition, excess rate of attrition amongst the personnel engaged by the Company may have an adverse impact on the business operations.
- There are certain non-compliances made by the Company in respect of the provisions of Companies Act, 2013. Any penalty or action taken by regulatory authorities in the future for these or other corporate or legal non-compliances could impact the financial position of the Company.
- The company have in the past entered into related party transactions and may continue to do so in the future.
- The company operates in a competitive industry and increased competition may lead to a reduction in the revenues, reduced profit margins or a loss of market share.
- Changes in technology may render the current technologies obsolete or require it to make substantial investments.
- Adverse publicity regarding the products could negatively impact it.
- If the company is not able to successfully manage its growth, our business and results of operations may be adversely affected.
- The average cost of acquisition of Equity Shares by the Promoters could be lower than the Issue price.
- The Promoters or directors do not possess experience in managing publicly listed companies.
- Its industry is labour intensive and the business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by the employees or those of the suppliers.
- The company is majorly dependent on third-party logistics service providers for the transportation of raw materials and finished products.
- The company operations are subject to high working capital requirements. Its inability to maintain an optimal level of working capital required for the business may impact the operations adversely.
- The Promoters (including Promoter Group), Directors, KMP's and Senior Management Personnel hold 95.14% of the Equity Shares of the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
- The company has incurred significant indebtedness which exposes it to various risks which may have an adverse-affect on its business and results of operations.
- Fraud, theft, employee negligence or similar incidents may adversely affect the results of operations and financial condition.
- The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect the financial condition, results of operations and reputation.
- Loans availed by the Company has been secured on personal guarantees of the Promoters. The company business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by the Promoters.
- The company has not identified any alternate source of funding and hence any failure or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
- The Company engages contract labour at its manufacturing facility and its may be liable for or exposed to litigations, sanctions, penalties or losses arising from accidents or damages caused by the workers or contractors.
- Its subject to the restrictive covenants of banks in respect of the Loans/ Credit Limits and other banking facilities availed from them.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- The Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency.
- Information relating to the production capacities and the historical capacity utilization of its production facilities included in this Draft Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off and future production and capacity utilization may vary.
- Its ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Certain key performance indicators for certain listed industry peers included in this Draft Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- The Promoter and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Any future issuance of Equity Shares may dilute your shareholdings and sale of the Equity Shares by its major shareholders may adversely affect the trading price of the Equity Shares.
- Certain data mentioned in this Draft Red Herring Prospectus has not been independently verified.
- One of our promoter, Mr. Kaid Johar Kalabhai, was disqualified from being a director by MCA in the past for period from November 01, 2016 to October 31, 2021.
- Our Company had negative cash flows in the past, details of which are given below. Sustained negative cash flow could impact our growth and business.
- Any disruptions or shutdown of our manufacturing operations at our existing facility could have an adverse effect on our business, financial condition and results of operations.
- We require certain approvals, licenses, registrations and permits to operate our business and failure to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate our business may adversely affect our operations and financial conditions.
- There have been instances of delays and non-deposit of certain statutory dues, including ESIC, PF and Professional Tax. Any cognizance being taken by respective authorities on non-compliance in payment of statutory obligations may result in penalties, interest liabilities, or regulatory actions, which could adversely impact our business, financial condition, results of operations and cash flows.
- We intend to utilize a portion of the Net Proceeds for funding our capital expenditure requirements. While we have shortlisted vendors and obtained quotations from them, we are yet to place orders or enter into definitive agreements with the vendors in relation to such capital expenditure requirements, except for the Horizontal Center Nexus 8800 machine.
- Dependence on third-party job work to meet excess production demands may adversely impact our operations and financial performance.
- Past Delays in Statutory Filings with the Registrar of Companies and Associated Regulatory Risks
- We are subject to strict quality requirements and any failure to comply with quality standards may lead to cancellation of existing and future orders, product recalls, product liability, warranty claims and other disputes and claims.
- Our failure to identify and understand evolving industry trends and preferences and to develop new products to meet our customers' demands may materially adversely affect our business.
- Trade receivables form a major part of our current assets and net worth. Failure to manage our trade receivables could have an adverse effect on our net sales, profitability, cash flow and liquidity.
- Our insurance coverage may not be adequate to protect us against certain operating hazards and this may have a material adverse effect on our business.
- Under-utilization of our manufacturing capacities and an inability to effectively utilize our expanded manufacturing capacities could have an adverse effect on our business, future prospects and future financial performance.
- Certain statutory registration certificates, which including the Professional Tax registration certificates, is currently not traceable.
- Any failure to accurately forecast demand for our products and accordingly manage our inventory, may have an adverse effect on our business, cash flows, financial condition and results of operations.
- Our Company is in use of trademark, which is not registered under the Trademarks Act, 1999 as on date of Red Herring Prospectus. Thus, we may be subject to claims alleging breach of third party intellectual property rights.
- We are dependent upon the experience and skill of our Promoters, Key Managerial Personnel and Senior Management Personnel for conducting our business and undertaking our day-to-day operations. The loss of or our inability to retain, such persons could materially and adversely affect our business performance. In addition, excess rate of attrition amongst the personnel engaged by our Company may have an adverse impact on our business operations.
- There are certain non-compliances made by our Company in respect of the provisions of Companies Act, 2013. Any penalty or action taken by regulatory authorities in the future for these or other corporate or legal non-compliances could impact the financial position of the Company.
- We have in the past entered into related party transactions and may continue to do so in the future.
- We operate in a competitive industry and increased competition may lead to a reduction in our revenues, reduced profit margins or a loss of market share.
- Changes in technology may render our current technologies obsolete or require us to make substantial investments.
- Adverse publicity regarding our products could negatively impact us.
- If we are not able to successfully manage our growth, our business and results of operations may be adversely affected.
- The average cost of acquisition of Equity Shares by our Promoters could be lower than the Issue price.
- Our Promoters or directors do not possess experience in managing publicly listed companies.
- Our industry is labour intensive and our business operations may be materially adversely affected by strikes, work stoppages or increased wage demands by our employees or those of our suppliers.
- Our company is majorly dependent on third-party logistics service providers for the transportation of raw materials and finished products.
- Our operations are subject to high working capital requirements. Our inability to maintain an optimal level of working capital required for our business may impact our operations adversely.
- Our Promoters (including Promoter Group), Directors, KMP's and Senior Management Personnel hold 91.14% of the Equity Shares of our Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
- We have incurred significant indebtedness which exposes us to various risks which may have an adverse-affect on our business and results of operations
- Fraud, theft, employee negligence or similar incidents may adversely affect our results of operations and financial condition.
- We could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect our financial condition, results of operations and reputation.
- Loans availed by our Company has been secured on personal guarantees of our Promoters. Our business, financial condition, results of operations, cash flows and prospects may be adversely affected in case of invocation of any personal guarantees provided by our Promoters.
- We have not identified any alternate source of funding and hence any failure or delay on our part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
- Our Company engages contract labour at its manufacturing facility and we may be liable for or exposed to litigations, sanctions, penalties or losses arising from accidents or damages caused by our workers or contractors.
- We are subject to the restrictive covenants of banks in respect of the Loans/ Credit Limits and other banking facilities availed from them.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- The Objects of the Issue for which funds are being raised, are based on our management estimates and have not been appraised by any bank or financial institution or any independent agency.
- Information relating to our production capacities and the historical capacity utilization of our production facilities included in this Red Herring Prospectus is based on certain assumptions and has been subjected to rounding off and future production and capacity utilization may vary.
- Our ability to pay any dividends will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
- There is no monitoring agency appointed by Our Company to monitor the utilization of the Issue proceeds.
- Our Promoter and the Promoter Group will jointly continue to retain majority shareholding in our Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Any future issuance of Equity Shares may dilute your shareholdings and sale of the Equity Shares by our major shareholders may adversely affect the trading price of our Equity Shares.
- Certain data mentioned in this Red Herring Prospectus has not been independently verified.
- There can be no assurance that the Equity Shares offered through this Issue will be listed on the SME Platform of BSE.
The Issue type of Gallard Steel Ltd is Book Building - SME.
The minimum application for shares of Gallard Steel Ltd is 2000.
The total shares issue of Gallard Steel Ltd is 2500000.
Initial public offer of up to 25,00,000 equity shares of face value of Rs. 10/- each (the "equity shares") of Gallard Steel Limited ("the company" or "GSL" or "the issuer") at an issue price of Rs.150/- per equity share for cash, aggregating up to Rs.37.50 crores("public issue") out of which 1,25,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 150/- per equity share for cash, aggregating Rs. 1.88 crores will be reserved for subscription by the market maker to the issue (the "market maker reservation portion"). The public issue less market maker reservation portion i.e. issue of 23,75,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 150/- per equity share for cash, aggregating up to Rs.35.63 crores is herein after referred to as the "net issue". The public issue and net issue will constitute 26.32% and 25.00% respectively of the post-issue paid-up equity share capital of the company.
Price Band: Rs. 150for equity share of face value of Rs. 10 each.
The floor price is 15.20 times times the face value times of the face value of the equity shares.
Bids can made for a minimum of 2,000 equity shares and in multiples of 1,000 equity shares thereafter.