Standard Glass Lining IPO to open on January 6: Check issue size, price band & more

Standard Glass Lining IPO: The initial public offer of specialised engineering equipment manufacturer Standard Glass Lining Technology will open for subscription on January 6, 2025. The company has set a price band of ₹133-₹140 per equity share. The issue will conclude on January 8. Meanwhile, the issue will open for anchor investors on January 3.

The ₹410 crore initial share sale is a fresh issuance of equity shares valued at ₹210 crore and an offer-for-sale (OFS) of up to 1.42 crore shares worth ₹200.05 crore

Standard Glass Lining IPO lot size

Retail investors can bid for at least 107 shares, requiring an investment of ₹14,980.

The company has reserved 50% of the net issue worth ₹205.03 crore for qualified institutional investors and 35% of the net offer worth ₹143.52 crore for retail investors. For non-institutional investors, shares aggregating ₹61.51 crore have been reserved.

The book-running lead managers for the issue are IIFL Capital Services and Motilal Oswal Investment Advisors, while KFin Technologies is the registrar. The company's shares will be listed on the NSE and the BSE.

Standard Glass Lining IPO objectives

The money raised will be used towards the following objectives:

• ₹10 crore from the net IPO proceeds will be used to purchase machinery and equipment.
• The company will use ₹130 crore to repay/prepay certain outstanding borrowings
• Invest ₹30 crore in its subsidiary, S2 Engineering Industry
• ₹20 crore to fund inorganic growth via acquisitions or strategic investments
• General corporate purposes.

Standard Glass Lining IPO: Allotment and listing date

• Subscription period: 6 to 8 January
• Finalisation of the basis of allotment: January 9
• Refund initiation: January 10
• Credit of shares to Demat ac of allottees: January 10
• Listing: January 13

About the company

Standard Glass Lining is a key specialised engineering equipment manufacturer for the chemical and pharmaceutical sectors in India. Its capabilities include designing, engineering, assembly, manufacturing, installation, and commissioning solutions apart from setting up standard operating procedures (SOPs) for pharma and chemical manufacturers on a turnkey basis.

The company has a diversified customer base, including end users operating in various sectors across pharmaceutical, chemicals, paint, biotechnology, and food and beverages. As of June 30, 2024, the company’s customer base includes 30 of approximately 80 pharmaceutical and chemical companies in the NSE 500 index.

Some of its marquee clients include Apitoria Pharma Private Limited, Aurobindo Pharma Limited, CCL Food and Beverages Private Limited, Cohance Lifesciences Limited, Cadila Pharmaceutical Limited, Deccan Fine Chemicals (India) Private Limited, Dasami Lab Private Limited, Laurus Labs Limited, Granules India Limited and many others. The company operate through its eight manufacturing facilities located in Hyderabad, Telangana.

Standard Glass Lining IPO: Key metrics

• *ROCE calculated as profit before tax add finance cost divided by average capital employed.
• **RoA is calculated as PAT divided by the average total assets

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, Standard Glass Lining has improved its debt-to-equity ratio from 1.01 in FY22 to 0.30 in FY24, while ROCE and RoA have shown double-digit growth in the last three fiscal years.