Standard Glass Lining IPO: A Strong Start
The Standard Glass Lining Technology IPO has made a significant impact since its launch. Opening for subscriptions today, the IPO was oversubscribed within just one hour. This rapid interest highlights the strong demand from both retail and non-institutional investors. Currently, the overall subscription stands at 1.82 times, with Retail Individual Investors subscribing at 2.46 times and Non-Institutional Investors at 2.73 times. This article delves into the details of the IPO, its pricing, market performance, and the company’s background.
Standard Glass Lining IPO: Price Band and Subscription Details
The Standard Glass Lining IPO is a substantial issue valued at Rs 1,250 crore. It includes fresh equity worth Rs 210 crore and an offer for sale of 1.42 crore shares. The subscription period for this IPO will remain open until January 8. Prior to the public offering, the company successfully raised Rs 123 crore from anchor investors, indicating strong institutional interest.
The price range for the shares is set between Rs 133 and Rs 140 each. Investors must subscribe in lots of 107 shares, with additional investments allowed in multiples of this lot size. The proceeds from the fresh issue will be utilized for various purposes. These include capital expenditures for acquiring new machinery, settling debts, investing in its wholly-owned subsidiary S2 Engineering Industry, and making strategic investments for inorganic growth. The funds will also support general corporate requirements, ensuring the company is well-positioned for future growth.
Standard Glass Lining GMP and Market Outlook
As of now, the Grey Market Premium (GMP) for the Standard Glass Lining IPO stands at Rs 93. This indicates a promising 69% premium above the issue price. Market analysts are optimistic about this IPO, recommending it for subscription due to the company’s strong growth prospects. They anticipate revenue increases of 20-25% in the medium term, driven by geographical expansion and product diversification.
Based on the upper price band, the company’s post-issue valuation reflects a FY24 Price-to-Earnings (P/E) ratio of 47.8x. Analysts from SBI Capital Securities have noted that when compared to its peers, the issue is fairly valued and boasts a superior margin profile. They recommend subscribing to the issue for those looking at a long-term investment horizon. The share allocation process for the IPO will conclude on January 9, and the shares are expected to commence trading on January 13.
About Standard Glass Lining
Standard Glass Lining is recognized as one of India’s leading specialized engineering equipment producers for the pharmaceutical and chemical industries. The company has established itself among the top five in this sector based on projected FY24 revenue. It offers comprehensive in-house production capabilities, providing end-to-end solutions that include design, engineering, manufacturing, assembly, installation, and commissioning services.
The Glass-Lined Equipment (GLE) sector is poised for significant growth. GLE is essential for safeguarding contents from water, chemicals, alkalis, and corrosion, creating optimal storage conditions. The equipment is known for its resistance to contamination and its effectiveness across various operational settings. In FY24, Standard Glass Lining reported a 9% year-over-year increase in operational revenue, reaching Rs 544 crore. Additionally, profit after tax grew by 13% to Rs 60 crore. For the six months ending September 2024, the company achieved revenues of Rs 307 crore and profits of Rs 36 crore. The IPO is managed by IIFL Capital Services and Motilal Oswal Investment Advisors, with KFin Technologies serving as the registrar.
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