Standard Glass Lining IPO Subscribed Over 13 Times On Day 1; Check GMP, Price Band And More

The initial public offering of Standard Glass Lining Technology Ltd. has been subscribed 13.32 times on day one of bidding on Monday, led by demand from retail and non-institutional investors. The company plans to raise 410.05 crore through the IPO.

The grey market premium of the Standard Glass Lining Technology IPO was Rs 97 as of 09:26 a.m., according to InvestorGain. This implies that the shares of the company will likely list at Rs 237 apiece, indicating a 69.29% premium to the upper end of the price band.

The IPO is a combination of a fresh issue worth Rs 210 crore and 200.05 crore of offer for sale. The price band has been set in the range of Rs 133–140 per share.

The company raised Rs 123 crore from anchor investors the day ahead of the IPO launch, allotting 87.8 lakh shares at Rs 140 apiece to 10 anchor investors.

IIFL Securities and Motilal Oswal Investment Advisors are the book-running lead managers of the issue, and KFin Technologies Ltd. is the registrar for the offer, according to the draft red herring prospectus.

The allotment is expected to be finalised on Jan. 9. The tentative listing date has been fixed as Jan. 13.

• Issue opens: Jan. 6.

• Issue closes: Jan. 8.

• Issue price: Rs 133–140.

• Offer for sale: Rs 200.05 crore

• Fresh issue: Rs 210 crore.

• Total issue size: Rs 410 crore.

• Lot size: Minimum 107 shares.

• Funding of capital expenditure requirements of the company towards the purchase of machinery and equipment;

• Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company and investment in the wholly owned Material Subsidiary, S2 Engineering Industry Private Limited, for repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by S2 Engineering Industry Private Limited, from banks and financial institutions;

• Investment in the wholly owned material subsidiary, S2 Engineering Industry Private Limited, for funding its capital expenditure requirements towards the purchase of machinery and equipment;

• Funding inorganic growth through strategic investments and/or acquisitions and

• General corporate purposes.

Standard Glass Lining Technology is one of the top five specialised engineering equipment manufacturers for pharmaceutical and chemical sectors in India, in terms of revenue, in fiscal 2024, with in-house capabilities across the entire value chain.

The company's capabilities include designing, engineering, manufacturing, assembling, installing, and commissioning solutions, as well as establishing standard operating procedures for pharmaceutical and chemical manufacturers on a turnkey basis.

The company's portfolio comprises core equipment used in the manufacturing of pharmaceutical and chemical products, which can be categorised into (i) reaction systems, (ii) storage, separation, and drying systems, and (iii) plant, engineering, and services (including other ancillary parts).

The IPO has been subscribed 13.32 times as of 05:00 p.m. on Monday.

• Qualified institutional buyers: 1.82 times.

• Non-institutional investors: 25.43 times.

• Retail investors: 14.46 times.

In fiscal 2024, revenue from operations was Rs 544 crore, compared to Rs 497 crore in fiscal 2023 and Rs 240 crore in fiscal 2022. Ebitda stood at Rs 101 crore in fiscal 2024 in comparison to Rs 88 crore in fiscal 2023 and Rs 42 crore in fiscal 2022.

Similarly, net profit was Rs 60 crore, while it was Rs 53 crore in fiscal 2023 and Rs 25 crore in fiscal 2022.

The grey market premium of the Standard Glass Lining Technology IPO was Rs 97 as of 09:26 a.m., according to InvestorGain. This implies that the shares of the company will likely list at Rs 237 apiece, indicating a 69.29% premium to the upper end of the price band.

Note: The GMP is not an official price quote for the stock and is based on speculation.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.