Standard Glass Lining Technology is opening its initial public offering (IPO) on January 6, 2025. The company aims to raise ₹410 crore through a combination of fresh equity shares and an offer-for-sale (OFS) of existing shares. The IPO will close on January 8, with anchor investors able to subscribe starting January 3. The price band is set between ₹133 and ₹140 per equity share.
- The IPO size is ₹410 crore, including ₹210 crore fresh equity and ₹200.05 crore OFS shares.
- Retail investors can bid for a minimum of 107 shares, requiring about ₹14,980 investment.
- 50% of the net issue is reserved for qualified institutional investors, 35% for retail investors, and 15% for non-institutional investors.
- Shares will be listed on the NSE and BSE stock exchanges.
What is the issue size and price band for the IPO?
The IPO is valued at ₹410 crore, consisting of fresh equity shares worth ₹210 crore and an offer-for-sale of up to 1.42 crore shares valued at ₹200.05 crore. The price band is fixed between ₹133 and ₹140 per equity share.
Who can invest and what is the lot size?
Retail investors have a reserved quota of 35% of the net issue, approximately ₹143.52 crore. Qualified institutional investors receive 50%, and non-institutional investors have 15%. The minimum bid for retail investors is 107 shares, which requires an investment of about ₹14,980.
What are the company’s business operations?
Standard Glass Lining Technology manufactures specialized engineering equipment primarily for the chemical and pharmaceutical industries in India. Its services include designing, engineering, assembly, manufacturing, installation, and commissioning of equipment. The company also develops standard operating procedures (SOPs) for pharma and chemical manufacturers on a turnkey basis.
Who are the company’s customers?
The company serves a diverse client base across sectors such as pharmaceuticals, chemicals, paint, biotechnology, and food and beverages. As of June 30, 2024, it counts 30 out of approximately 80 pharmaceutical and chemical companies listed in the NSE 500 index among its customers. Notable clients include Aurobindo Pharma Limited, Cadila Pharmaceutical Limited, Laurus Labs Limited, and Granules India Limited.
Where are the company’s manufacturing facilities located?
Standard Glass Lining operates eight manufacturing facilities located in Hyderabad, Telangana.
How has the company performed financially recently?
Between fiscal years 2022 and 2024, the company’s revenue from operations grew at a compound annual growth rate (CAGR) of 50.45%. Net profit increased by 54.5% during the same period. The company has improved its debt-to-equity ratio from 1.01 in FY22 to 0.30 in FY24. Return on capital employed (ROCE) and return on assets (ROA) have shown double-digit growth over the last three fiscal years.
What will the funds raised be used for?
The money raised from the IPO will support the company’s growth plans, including expanding manufacturing capabilities, research and development, and working capital requirements.
Who are managing the IPO?
The book-running lead managers for the issue are IIFL Capital Services and Motilal Oswal Investment Advisors. KFin Technologies is the registrar for the IPO.
