Standard Glass Lining IPO: Listing Gains or Long-Term Growth?
Standard Glass Lining IPO is a book built issue of Rs 410.05 crores. The issue is a combination of fresh issue of 1.50 crore shares aggregating to Rs 210.00 crores and offer for sale of 1.43 crore shares aggregating to Rs 200.05 crores.
About Standard Glass Lining Technology Limited
Established in September 2012, Standard Glass Lining Technology Limited specializes in manufacturing engineering equipment for India’s pharmaceutical and chemical industries. With a fully integrated in-house production process, the company delivers end-to-end solutions tailored to its clients’ needs. Their consumers are from paint, biotechnology, pharmaceutical, and food beverages. Their promoters play a crucial role in the growth of the company as they are skilled and experts in leadership.
Its turnkey offerings encompass design, engineering, manufacturing, assembly, installation, and operational support for pharmaceutical and chemical manufacturing facilities.
The product range includes: Reaction Systems and Storage, Separation, and Drying Systems.
IPO Subscription Period
- Open Date: January 6, 2025
- Close Date: January 8, 2025
- Allotment Date: January 9, 2024
- Listing Date: January 13,2025
- Stock Exchanges: BSE and NSE
Pricing Details
- Price Band: ₹133 – ₹140 per Share
- Face Value: ₹10 per Share
- Minimum Lot Size: 107 shares
- Investment Requirement:
- Retail Investors: Minimum ₹14980 (107 shares)
- Small Non-Institutional Investors (sNII): 14 lots (1498 shares) – ₹209720
- Big Non-Institutional Investors (bNII): 67 lots (7169 shares) – ₹1003660
Reservation Structure
- Anchor Investors: 30% (8786809 shares)
- Qualified Institutional Buyers (QIB): 20% (5857875 shares)
- Non-Institutional Investors (NII): 15% (4393405 shares)
- Big NII (bNII): 10%
- Small NII (sNII): 5%
- Retail Investors: 35% (10251278 shares)
Key Dates and Timeline
- IPO Open Date: Monday, January 6, 2025
- IPO Close Date: Wednesday, January 8, 2025
- Basis of Allotment: Thursday, January 9, 2025
- Initiation of Refunds: Friday, January 10, 2025
- Credit of Shares to Demat: Friday, January 10, 2025
- Listing Date: Monday, January 13, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on January 8, 2025
Book Running Lead Managers
Standard Glass Lining Technology Limited has appointed prominent financial institutions as book-running lead managers for the IPO:
- IIFL Securities Ltd
- Motilal Oswal Investment Advisors Ltd
Kfin Technologies Limited has been designated as the registrar for the IPO.
Promoter Information
- Promoter: The promoters of the company are Nageswara Rao Kandula, Kandula Krishna Veni, Kandula Ramakrishna, Venkata Mohana Rao Katragadda, Kudaravalli Punna Rao and M/s S2 Engineering Services.
- Shareholding:
- Pre-Issue: 72.49%
- Post-Issue: -
Financial Highlights
- Revenue: In FY22 revenue was ₹241 crores, in FY23 it was ₹500 and in FY24 it is ₹549 crores.
- Profit after Tax (PAT): FY22- ₹25 crore, FY23- ₹53 crores and FY24- ₹60 crores.
- Net Worth: ₹448 crores
- Total Borrowing: ₹174 crores
Key Performance Indicators (KPIs):
- ROE: 20.7%
- RoNW: 25.5%
- P/BV: 5.7
- EPS (Pre-IPO): ₹3.25
- EPS (Post-IPO): ₹3.64
- P/E Ratio (Pre-IPO): 43.04x
- P/E Ratio (Post-IPO): 38.5x
IPO Objectives
The Company intends to utilize the Net Proceeds for the following purposes:
- Financing capital expenditure requirements for purchasing machinery and equipment.
- Repaying or prepaying, in full or part, certain outstanding borrowings of the Company, as well as supporting its wholly-owned subsidiary, S2 Engineering Industry Private Limited, in repaying or prepaying outstanding borrowings from banks and financial institutions.
- Investing in S2 Engineering Industry Private Limited to meet its capital expenditure needs for purchasing machinery and equipment.
- Supporting inorganic growth through strategic investments and/or acquisitions.
- Covering general corporate purposes.
Subscription Status (As of January 07, 2025)
- Retail: 19.97x
- QIB: 1.81x
- NII: 35.73x
- Overall Subscription: 18.16x
Recommendation
We recommend investors to apply the IPO of Standard Glass Lining Technology Ltd, as the revenue is growing year on year and the demand of the industry has risen which is beneficial for the company. The grey market premium as of January 07, 2025, it is approximately 71% showing a great listing gain to investors. For long term the valuation post IPO are also reasonable compared to its peer companies like GMM Pfaudler Ltd, HLE Glasscoat Ltd, Thermax Ltd, etc. provides a better opportunity to investor in long term.