Standard Glass Lining Technology IPO

Standard Glass Lining Technology IPO Details

Standard Glass Lining Technology IPO Date

The Standard Glass Lining Technology IPO will open for subscription on  January 6, 2025, and the closing date for the IPO is January 8, 2025, according to the offer document filed by the company with SEBI. After this, investors are expected to be updated about the allotment status on Thursday, January 9, 2025.

Investors who have been allotted shares can expect them to be credited to their demat account on January 10, 2025. The shares will tentatively be listed on the NSE and the BSE on Monday, January 13, 2025. 

Standard Glass Lining Technology IPO Price Band

The IPO is comprised of a fresh issue and an offer for sale. The IPO price band has been set between ₹133 and ₹140 per share. Interested investors can choose a price within this band to apply for the IPO. 

The IPO is a book-building issue of ₹410.05 crore, with a fresh issue of 1.50 crore shares aggregating to ₹210 crore and an offer for sale worth 1.43 crore shares totalling ₹200.05 core. 

Standard Glass Lining Technology IPO listing price will be tentatively determined on January 13, 2025. The listing price is the price at which a company’s shares debut on the stock exchanges.

Standard Glass Lining Technology IPO Lot Size

The Standard Glass Lining Technology IPO details have been declared. The minimum lot size for an application is 107 shares and in multiples thereof. Meanwhile, the IPO issue size is approximately ₹410.05 crore. 

Standard Glass Lining Technology IPO Objective

The money raised from the IPO will be used towards the following objectives:

Loan repayment: The company will use ₹130 crore to repay/prepay certain outstanding borrowings availed by the company and its subsidiary, S2 Engineering Industry Private Limited.

Investment in subsidiary: Around ₹30 crore from the IPO proceeds will be used to invest in the subsidiary, S2 Engineering Industry, towards purchasing machinery and equipment.

Strategic investments: The company will invest ₹20 crore to fund inorganic growth via acquisitions or strategic investments.

Capital Expenditure: ₹10 crore from the net IPO proceeds will be used to purchase machinery and equipment.

General corporate purposes: Part of the IPO proceeds will be used for general corporate purposes.

About Standard Glass Lining Technology

Incorporated in 2012, Standard Glass Lining Technology is one of the leading engineering equipment manufacturers. The company specialises in designing, engineering, manufacturing, assembly, installation, and commissioning solutions for the pharmaceutical, chemical, paint, biotechnology, and food and beverages industries. 

The company portfolio comprises over 65 products categorised into reaction systems, storage, separation, drying systems, and plant, engineering, and services. Over the last decade, it has supplied over 11,000 products to its clients. 

As of September 30, 2024, the company had a diversified customer base of 347 clients. It has long-standing relationships of more than three years with 13 of its top 20 customers. Further, as of June 30, 2024, it had served 30 out of 80 pharma and chemical companies in the NSE 500 index. 

The company operates a sales, service, and distribution network from four sales offices in India. It has agency agreements to sell and market its products in overseas markets in Bangladesh and Russia. Additionally, the company has resale arrangements for North America (excluding Cuba), South America, Europe (excluding Belarus and Russia), and certain countries in Asia and Africa.

Standard Glass Lining has eight manufacturing facilities in Telangana that can produce reactors, receivers, and storage tanks ranging from 30 to 40,000 litres in size. It also can manufacture around 300-350 pieces of equipment per month across its product portfolio. As of September 30, 2024, it had 460 full-time employees and 731 contract labourers.

In FY24, over 81.7% of the company revenue came from the pharmaceutical sector, while 12.54% was contributed by the chemical industry and the rest by the paint, biotechnology, and food & beverages. The company’s major focus is on the domestic market, which contributes most of the revenue, while export sales make up 0.37% of total revenue in FY24. Meanwhile, HLE Glasscoat Ltd, BEW Engineering Pvt Ltd, Thermax Ltd, Praj Industries and

GMM Pfaudler are some of its major competitors.  

Between FY22 and FY24, the company's revenue from operations rose at a CAGR of 50.45%, while net profit rose 54.5% during the same period. Meanwhile, the Indian pharmaceutical industry is expected to grow at a CAGR of 9.5% between FY23 and FY28 to reach $35.6 billion. The chemical industry is projected to grow at a yearly pace of 9-12% from FY23 to FY27. This healthy industry growth could be a positive for companies like  Standard Glass Lining, leading to more order inflows. 

Now, Standard Glass Lining Technology Limited is launching its initial public offering (IPO), which consists of a fresh issue of over 1.50 crore shares worth ₹210 crore and an offer for sale of 1.42 crore shares aggregating to ₹200.05 crore, each with a face value of ₹10 per share. This totals to ₹410.05 crore. Its shares will be listed on the NSE and BSE.

Financial snapshot

Company Name: Standard Glass Lining Technology Limited

Company Established On: September 6, 2012

Company Type: Private Limited Company

Managing Director: Nageswara Rao Kandula

Financial snapshot

Standard Glass Lining Technology IPO Analysis

Strengths and Opportunities

1. It is one of the top five specialised engineering equipment manufacturers (in terms of revenue in FY24) for the pharmaceutical and chemical sectors in India, with products across the entire value chain.
2. As of September 30, 2024, its comprehensive portfolio includes over 65 products and offerings across the pharma and chemical industries.
3. The company offers turn-key solutions for pharmaceutical and chemical facilities, including design, engineering, manufacturing, assembly, installation, and commissioning.
4. It is the only stainless steel glass-lined reactor supplier in India with the potential to manufacture up to 10KL capacity.
5. With a monthly installed capacity of 150-200 glass-lined vessels, it is one of India's top three glass-lined equipment manufacturers in FY24 in revenue.
6. It is one of the top three suppliers of multistage claw vacuum pumps in India in terms of revenue in FY24.
7. The company’s eight manufacturing plants are strategically located in Hyderabad, Telangana, equipped with tools like 3D computer-aided design (CAD), robotic welding and precision computer numerical control (CNC) manufacturing.
8. As of September 30, 2024, its marquee client base includes 347 customers. It has also served 30 of 80 pharma and chemical companies in the NSE 500 index as of June 30, 2024. 
9. It has been the fastest-growing company among its peers during the FY22 to FY24 period and achieved a 50.45% growth in revenue from operations on a consolidated basis.
10. It is led by a qualified senior management team with experience in manufacturing and finance, along with promoters experienced in the pharmaceutical and chemicals engineering equipment industry.

Risks and Threats

1. With all of its eight manufacturing facilities located in Hyderabad, Telangana, any changes in the region's political or economic conditions could adversely impact its business.
2. The loss of one or more of its suppliers for key raw materials such as stainless steel, nickel alloy and chemicals, among others, could adversely affect its manufacturing process and supply timeline. 
3. In FY22, FY23, FY24 and H1FY25, the company derived over 88.20% of its revenue from the pharmaceutical and chemical industries combined. Thus, any impact on these sectors could adversely affect its business.
4. The company experienced a negative cash flow of ₹65.03 crore and ₹19.34 crore in FY24 and H1FY25, respectively.
5. As its manufacturing units are dependent on adequate and uninterrupted water and electricity supply, any disruption in the supply of the two will affect the company’s operations.
6. The company will use 61.09% of the fresh issue, ₹130 crore, to pay a debt.
7. Any downgrade in the company’s credit rating could increase its borrowing cost and affect its ability to obtain financing.
8. The company engages in foreign currency transactions, thus exposing it to adverse fluctuations in foreign exchange rates.
9. Any negative impact on the Indian market will adversely affect the company’s business. 

How to apply for the Standard Glass Lining Technology IPO?

If you are interested to invest in Standard Glass Lining Technology IPO, following are the steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the 'Standard Glass Lining Technology IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

You can also pre-apply for the Standard Glass Lining Technology IPO on Upstox which usually begins a day before the IPO opens for subscription.