Glen Industries To Utilise IPO Funds For Capacity Expansion

Glen Industries Ltd. expects a significant growth in its revenue, driven by expansion in production capacity following the initial public offering.

The food-packing material producer launched its IPO on Tuesday to raise Rs 63 crore from the primary market.

The company plans to invest IPO funds in its new production facility, according to its Chairperson Lalit Agrawal.

"This fundraising of Rs 63 crore is basically to fund our new project. Most of it will go into setting up a new facility, which is costing about Rs 100 crore," he said in a conversation with NDTV Profit on Tuesday.

"Out of this, around Rs 50 crore, we will raise by way of a term loan and the balance is from the equity. This new project is mainly to manufacture products like thin-wall food containers, as well as paper-based packaging," Agrawal said.

The Glen Industries IPO is a book-building worth Rs 63 crore. The BSE SME IPO comprises entirely a fresh issue of 64.97 lakh shares. The IPO is open for bidding from Tuesday to Thursday. The IPO price band has been set at Rs 92 to Rs 97 per share and each lot size comprises 1,200 shares.

According to Agrawal, the company’s production capacity currently stands at 665 tonnes per month for thin-wall food containers, 110 tonnes for paper straws and 120 tonnes for PLA straws.

"As far as the top line is concerned, we believe that after the new facility is set up, we will be multiplying our turnover. At present, we have done Rs 170 crore. In the current year, maybe around Rs 200 crore we will do. And after the new setup is in operation, it will be almost two and a half times that," he said.

When asked about how soon this new capacity will be operational, Agrawal said that it is expected to be up and running by January 2026.

"When we set up the new facility, we will be almost multiplying the food container capacity from 665... it will go to almost 1,900 to 2,000 metric tonnes per month. And in the paper space, we will be expanding around the capacity of 700–750 metric tonnes per month," he explained.

Commenting on the company’s long-term growth outlook, Agrawal emphasised that Glen Industries will benefit from the expected double-digit CAGR growth in the quick-service-restaurant industry over the next five–seven years.