Standard Glass Lining IPO - Should You Subscribe? Read Geojit's Analysis

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Geojit Report

Standard Glass Lining Technology Ltd. launched its initial public offering on January 06 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.

Purpose of IPO

Proceeds from fresh issue will fund capital expenditure, repay borrowings, invest in subsidiary S2 Engineering, Funding inorganic growth and cover general corporate purposes.

At the upper price band of Rs 140, Standard Glass Lining Technology is available at a P/E of 38.5x (on FY25 Annualised), which appears fairly priced compared to peers.

The growing demand for glass-lined equipment in pharmaceuticals and chemicals offers significant growth potential. Standard Glass Lining Technology’s healthy margins, consistent revenue growth robust growth outlook, a diverse product portfolio with a focus on customization, and inorganic growth plans support a "Subscribe" rating for the stock on a medium to long term basis.

Key Risks

• Depends on limited number of suppliers for key raw materials like stainless steel, chemicals and polytetrafluoroethylene powder etc.

• Revenue depends heavily on pharmaceutical and chemical sectors.

• Operates in a competitive market with established players.

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