Standard Glass Lining IPO — Should You Subscribe? Read Anand Rathi's Analysis

Anand Rathi Report

Standard Glass Lining Technology Ltd. launched its initial public offering today and the offer closes for subscription on Jan. 08. A specialized engineering equipment manufacturer for the pharmaceutical and chemical sectors in India has fixed the price band in the range of Rs 133-140 per share.

The Rs 419.05 crore IPO comprises of a fresh issue of shares worth up to Rs 219 crore and an offer-for-sale of 1.43 crore shares aggregating up to Rs 200.05 crore. The minimum order lot for bidding is 107 and in its multiples thereafter.

Objects of the Issue

• Funding of capex towards purchase of machinery and Equipment.  Investment in wholly owned subsidiary

• Repayment/prepayment of outstanding borrowings availed by the company;

• Funding inorganic growth and general corporate purposes.

Valuation

Standard Glass Lining Technology is one of the top five specialized engineering equipment manufacturers for pharmaceutical and chemical sectors in India with products across entire value chain with customized and innovative product offering across the entire pharmaceutical and chemical manufacturing value chain and strategically located manufacturing facilities with advanced technological capabilities.

At the upper price band company is valuing at P/E of 43.01 times, with an enterprise value/Ebitda of 30.08x and market cap of Rs 27,928 million post issue of equity shares and return on net worth of 20.74%.

We believe that the IPO is fairly priced and recommend a “Subscribe-Long term” rating to the IPO.

Click on the attachment to read the full IPO report:

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