The Standard Glass Lining Technology Limited IPO, a highly anticipated offering in the pharma engineering equipment sector, entered the Indian primary market on January 6, 2025. The public issue has generated significant interest, with strong demand across retail, institutional, and non-institutional investor categories.
This article provides a detailed overview of the IPO, covering essential details, subscription updates, grey market premium (GMP) trends, and expert insights to help you decide whether to apply.
Key Details of Standard Glass Lining IPO
1. Price Band and Issue Size
- Price Band: ₹133–₹140 per equity share.
- IPO Size: ₹410.05 crore, comprising:
- Fresh Issue: ₹210 crore, aimed at business expansion and debt reduction.
- Offer for Sale (OFS): ₹200.05 crore, enabling existing shareholders to partially liquidate their stakes.
2. Grey Market Premium (GMP)
The IPO has seen strong interest in the grey market, with shares trading at a premium of ₹98 over the upper price band of ₹140. This reflects bullish sentiment and the potential for a robust listing debut.
3. Subscription Status
By Day 2 of bidding, the IPO received an overwhelming response:
| Category | Subscription (Times) |
|---|---|
| Retail Investors | 17.98 |
| Non-Institutional Investors (NII) | 32.78 |
| Qualified Institutional Buyers (QIB) | 1.83 |
| Overall | 16.69 |
The high subscription levels, especially among retail and NII segments, highlight investor confidence in the company’s growth story.
4. Lot Size and Minimum Investment
- Lot Size: 107 shares per lot.
- Minimum Investment: ₹14,231–₹14,980 (depending on the price band).
This makes the IPO accessible to a wide range of investors, from small retail participants to large institutions.
5. Key Dates and Timeline
| Event | Date |
|---|---|
| IPO Open Date | January 6, 2025 |
| IPO Close Date | January 8, 2025 |
| Allotment Date | January 9, 2025 |
| Listing Date | January 13, 2025 |
6. Lead Managers and Registrar
- Lead Managers: IIFL Securities and Motilal Oswal Investment Advisors.
- Registrar: Kfin Technologies.
These entities are known for their expertise in managing IPOs efficiently, ensuring seamless subscription and allotment processes.
Business Overview of Standard Glass Lining Technology
Standard Glass Lining Technology is a leading manufacturer of specialized engineering equipment catering to the pharma and chemical industries. The company’s robust product portfolio includes over 65 products, with plans to expand into sectors like oil and gas, edible oil, and heavy engineering by venturing into the 150 MM thickness segment.
Growth Strategy
- Capacity Expansion:
The company plans to significantly increase its production capacity, currently at 300–350 pieces per month, to meet rising demand. - Export Growth:
Targeting 20% of revenue from exports by 2026, up from the current 0.5%. - Product Development:
Adding 15 new products to its portfolio to cater to diverse industries.
Financial Highlights
| Metric | FY22 | FY24 |
|---|---|---|
| Revenue (₹ crore) | 725.6 | 1,031.8 |
| EBITDA Margin | 18.2% | 21.5% |
| Return on Equity (RoE) | 17.6% | 20.7% |
The company’s financial performance reflects a strong growth trajectory, supported by operational efficiency and a diverse product portfolio.
Expert Reviews and Recommendations
Prathamesh Masdekar, Stoxbox Research Analyst
- Rating: Subscribe
- Key Insights:
- Superior margin profile compared to peers.
- Strategic diversification into high-growth sectors like oil and gas.
- Capacity expansion and export initiatives to drive future growth.
- Fair valuation at a P/E ratio of 39.77x, favorable compared to the industry average of 52.50x.
Masdekar highlights the company’s strong fundamentals and robust growth prospects, making it a compelling investment opportunity.
Canara Bank Securities
- Rating: Subscribe
- Key Insights:
- Exceptional RoE of 20.74%, surpassing the industry average of 16.96%.
- Expansion plans and export-driven growth to bolster financial performance.
Additional Analyst Views
- SBI Capital Securities and INDSEC Securities also recommend subscribing to the IPO, citing the company’s solid financial performance and promising outlook.
Should You Apply for the Standard Glass Lining IPO?
Reasons to Apply:
- Strong financials with expanding margins and robust revenue growth.
- Diversified product portfolio with significant capacity for scalability.
- Attractive valuation compared to industry peers.
- Positive grey market sentiment indicating a potential strong listing debut.
Risks to Consider:
- Reliance on a few key sectors for revenue generation.
- Execution risks associated with expansion and new product development.
Final Verdict
The Standard Glass Lining IPO offers a well-rounded investment opportunity, supported by strong financials, strategic growth initiatives, and favorable valuations. While risks exist, the company’s expansion plans and market position make it a promising choice for both short-term gains and long-term growth.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to consult certified financial professionals before making any decisions.
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