The IPO of Standard Glass Lining Technology saw overwhelming investor demand as it achieved full subscription within just 20 minutes of opening on January 6, 2025. By 11:00 AM, the IPO was subscribed 2.85 times, signalling strong interest across investor categories. Here’s an in-depth look at the IPO’s performance, its details, and the company’s growth potential.
Day 1 Subscription Highlights
The IPO, priced in a band of Rs 133-140 per share, received robust interest, with total bids for 5.94 crore shares against an offer of 2.08 crore shares. Subscription details as of 11:00 AM on Day 1 are as follows:
| Investor Category | Subscription Rate |
|---|---|
| Non-Institutional Investors (NIIs) | 3.92 times |
| Retail Individual Investors (RIIs) | 3.97 times |
The rapid subscription underscores the company’s market appeal and investor confidence in its future growth.
Grey Market Premium (GMP) Surge
The IPO’s Grey Market Premium (GMP) surged to 70%, suggesting a potential listing pop for investors. At the upper price band of Rs 140, the premium indicates an estimated listing price of approximately Rs 238 per share, reflecting significant optimism around the company’s valuation.
Anchor Investments
Ahead of the IPO, Standard Glass Lining Technology raised Rs 123 crore from prominent anchor investors, including Amansa Holdings, Kotak Asset Management, and ICICI Prudential Mutual Fund. This strong anchor book laid the foundation for the IPO’s stellar performance on Day 1.
Key Details of the IPO
| Details | Information |
|---|---|
| IPO Opening Date | January 6, 2025 |
| IPO Closing Date | January 8, 2025 |
| Price Band | Rs 133-140 per share |
| Total Issue Size | Rs 410.05 crore |
| Shares on Offer | 2.08 crore equity shares |
| Listing Date | January 13, 2025 |
| Stock Exchanges | BSE and NSE |
About Standard Glass Lining Technology
Incorporated in 2012 and headquartered in Hyderabad, Standard Glass Lining Technology specializes in manufacturing engineering equipment for the pharmaceutical and chemical sectors. The company is known for its turnkey solutions, including design, engineering, manufacturing, and installation of specialized equipment using materials like glass-lined steel and nickel alloys.
Key Business Highlights:
- Diverse Product Portfolio: Offers solutions catering to the entire pharmaceutical and chemical manufacturing value chain.
- Manufacturing Capabilities: Operates 8 state-of-the-art manufacturing units in Hyderabad.
- Strategic Growth Plans: Aims to expand both geographically and through product diversification.
IPO Proceeds Allocation
The funds raised through the IPO will be utilized for:
- Capital Expenditure: Expanding production capacity to meet growing demand.
- Debt Repayment: Reducing financial leverage to strengthen the balance sheet.
- Inorganic Growth: Funding acquisitions to enhance market share.
- Corporate Purposes: Supporting operational and strategic initiatives.
Financial Performance
The company has demonstrated consistent growth in revenue and profitability:
| Metric | FY24 (H1) | FY23 (Full Year) |
|---|---|---|
| Revenue | Rs 312.1 crore | Rs 549.68 crore |
| Net Profit | Rs 36.27 crore | Rs 60.01 crore |
| Market Capitalization | Rs 2,793 crore* | – |
*Estimated post-issue market capitalization.
Broker Recommendations
Several brokerage firms have shared positive views on the IPO:
- Indsec Research: Recommends ‘Subscribe’, citing robust financial growth and competitive pricing.
- SBI Securities: Rates it ‘Subscribe for Long Term’, highlighting strong export potential and superior margins.
- Canara Bank Securities: Notes the company’s focus on high-margin products and capacity expansion as key strengths.
Conclusion
The strong response to Standard Glass Lining Technology’s IPO reflects investor confidence in the company’s growth story. With a robust business model, strategic growth plans, and solid financial performance, the IPO offers promising opportunities for long-term investors. The 70% GMP surge further signals potential for substantial listing gains.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investors are advised to consult with their financial advisors before making investment decisions.
Click here to know more.
