Standard Glass Lining Technology IPO: Price Band, Financials, Key Dates, GMP — All You Need To Know

The initial public offering of Standard Glass Lining Technology is scheduled to open on Monday. The company plans to raise 410.05 crore through the IPO. 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.

The anchor lock-in period for 50% of the shares allocated to anchor investors will end on February 8, 2025, while the lock-in period for the remaining shares allocated under the 90-day holding period will conclude on April 9, 2025.

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.

Standard Glass Lining Technology IPO: Details

• 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.

Use Of Proceeds

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

2. 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;

3. 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;

4. Funding inorganic growth through strategic investments and/or acquisitions and

5. General corporate purposes.

Business

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).

Financials Performance

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.

Peer Comparison

Standard Glass Lining Technology IPO: Key Risks

• The company is dependent on manufacturing facilities, all of which are situated in Telangana, India. Subject to risks in relation to the company manufacturing process including accidents and natural disasters and also risks arising from changes in the economic or political conditions of Telangana

• The company's manufacturing facilities are dependent on an adequate and uninterrupted supply of electricity and water. Any shortage or disruption of electricity and/or water, may lead to disruption in operations, higher operating cost and consequent decline in our operating margins.

• The company's revenue from operations is dependent upon a limited number of customers, and the loss of any of these customers could have a material adverse effect on our business, financial condition, results of operations, and cash flows.

• The company is dependent on a limited number of suppliers for key raw materials such as stainless steel, carbon/mild steel, nickel alloy, forgings, castings, chemicals, and polytetrafluoroethylene powder. The loss of one or more of these suppliers could adversely impact the company's manufacturing processes and supply timelines, in turn adversely impacting our ability to comply with delivery schedules agreed with clients, resulting in an impact on our financial condition and results of operations.

• The majority of our customers operate in the pharmaceuticals and chemical sectors. In each of the last three fiscal years, more than 94.33% of our revenue from operations was derived from the pharmaceutical and chemical sectors, combined. Factors that adversely affect these sectors or capital expenditures by companies within these sectors may adversely affect our business, results of operations, and financial condition.

• Underutilisation of the company's currently operational production lines at the company's manufacturing facilities and an inability to effectively utilise our expanded manufacturing capacities could have an adverse effect on the company's business, future prospects, and future financial performance.

Standard Glass Lining Technology IPO GMP Today

The grey market premium of the Standard Glass Lining Technology IPO was Rs 88 as of Saturday at 11:37 a.m., according to InvestorGain. This implies that the shares of the company will likely list at Rs 228 apiece, indicating a 62.86% 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.