Standard Glass Lining IPO: Investor’s Guide In detail
Standard Glass Lining Technology
Standard Glass Lining Technology was incorporated in September of 2012 as manufacturers of engineering equipment in the pharmaceutical and chemical sector industries in India. The company provides turnkey solutions, including design, engineering, manufacturing, and installation, with a product portfolio spanning:
- Reaction Systems
- Storage, Separation and Drying Systems
- Services and Plant Engineering
Manufacturing units in Hyderabad and sales offices in Gujarat, Maharashtra, Andhra Pradesh are the locations from where the company caters to a varied network of clients including renowned pharmaceutical and chemical multinationals. On September 30, 2024, it had 460 full time employees and 731 contract laborers.
IPO Details at a Glance
| Issue Type | Book Built Issue IPO |
|---|---|
| Open/Close Dates | January 8, 2025 – January 6, 2025 |
| Listing Date | January 13, 2025 (NSE, BSE) |
| Price Band | ₹133 to ₹140 per share |
| Lot Size | 107 shares |
| Minimum Investment | ₹14,980 (retail investors) |
| Equity Shares | 15 mn fresh equity shares and offer for sale upto 1.43 mn equity shares aggregating Rs.410.05 Cr. |
Objects of the Issue
- Funding Capital Expenditure: Means to purchase machinery and equipment.
- Debt Repayment: So as to reduce borrowings and beef up the balance sheet.
- Investment in Subsidiary: Payment of capital expenditure and repayment of debts of S2 Engineering Industry.
- Inorganic Growth: Investments that will have strategic penetrations into the market share.
- General Corporate Purposes: They are operational and strategic requirements.
Financial Performance
| Metric | Details |
|---|---|
| Revenue Growth | Increased from ₹543.66 crore in FY23 to ₹549.68 crore in FY24 (10% YoY growth) |
| PAT | Grew 12% YoY to ₹60.01 crore in FY24 |
| EPS | Pre-IPO EPS at ₹3.25; Post-IPO EPS at ₹3.64 |
| P/E Ratio | 43.04x (pre-IPO) and 38.5x (post-IPO) |
These financials depict the company's steady top and bottom-line growth, with a solid operational foundation.
Market Position and Competitive Edge
Standard Glass Lining is one of the leaders in India amongst the top five specialized manufacturers of engineering equipment for the pharmaceutical and chemical industries. It is an ideal partner in glass-lined equipment owing to:
- Turnkey Solutions: Complete services are designed for the needs of the client.
- Operational Efficiency: Smooth processes guarantee quality and timely delivery.
- Strategic Presence: Factories and sales offices are located at important industrial places.
This is supplemented by an inorganic growth approach adopted by the company with the aim of making strategic investments that help in increasing market share with greater competitiveness.
Grey Market Premium (GMP) and listing expectations:
The IPO has been in the limelight of the grey market, with the latest GMP at ₹97 per share on January 4, 2025. This means it has a 69.29% higher price than the upper price limit of ₹140, which suggests a possible listing price of ₹237 per share.
Investment Analysis
The Standard Glass Lining IPO has both chances and risks for investors:
Positives
- Strong Financials: Steady growth in revenue and profit.
- Strategic Capital Expenditure, Debt Retirement and Strategic Investments
- Strong Market Position: The company is the preferred partner of the pharmaceutical and chemical sectors.
- Growth Potential: Inorganic growth and market expansion plans.
Considerations
Valuation: The P/E ratio at the upper price band stands at 38.5x, which appears to be fully priced.
Medium to Long-Term Investment: It would be more suited for investors who have a medium to long-term horizon
How to Apply for Standard Glass Lining IPO
Important Dates to Know
| Event | Date |
|---|---|
| IPO Opens on | January 6, 2025 |
| IPO Closes on | January 8, 2025 |
| Allotment Date | January 10, 2025 |
| List on | January 13, 2025 |
Conclusion
The Standard Glass Lining IPO promises an attractive investment opportunity for those seeking to join an emerging sector marked by solid financial performance and significant market dominance. Although the issue appears completely priced, strategic initiatives undertaken by the company towards growth and debt relief place it on the horizon as a bright medium- to long-term investment opportunity.
Investors are cautioned, as always, to study the DRHP in detail, weigh their financial goals, and then take advice from their advisors before arriving at a decision.
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