The Standard Glass Lining Technology IPO is making waves in the market as the first mainboard IPO of 2025, attracting robust investor demand across categories. With its focus on innovation in the engineering equipment sector, the Hyderabad-based company has drawn attention from retail investors, non-institutional investors (NIIs), and qualified institutional buyers (QIBs). Here’s an in-depth look at the IPO, its key details, and the company behind it.
IPO Details and Subscription Status
The Standard Glass Lining Technology IPO opened for subscription on January 6, 2025, and is set to close on January 8, 2025. The company aims to raise ₹410.05 crore through a book-building issue, comprising a fresh issuance of 1.5 crore shares worth ₹210 crore and an offer-for-sale (OFS) of 1.43 crore shares totaling ₹200.05 crore.
The price band for the IPO is fixed at ₹133 to ₹140 per share, with a minimum lot size of 107 shares for retail investors. On the first day alone, the IPO witnessed overwhelming demand, being subscribed 13.32 times overall. The retail portion saw bids 14.46 times the allocated shares, while the NII category achieved a subscription rate of 25.43 times. QIBs, although less aggressive, subscribed to 1.82 times their reserved portion.
Anchor Investors and Fund Allocation
Ahead of the IPO launch, Standard Glass Lining Technology raised ₹123.02 crore from anchor investors on January 3, 2025. The company allocated 87.86 lakh shares to prestigious entities like Amansa Holdings Private Ltd, ICICI Prudential MF, Kotak Mahindra Trustee Co Ltd, and Tata MF at ₹140 per share, the upper end of the price band.
As per the Red Herring Prospectus, the allocation of the public issue is divided into 50% for QIBs, 15% for NIIs, and 25% for retail investors.
About Standard Glass Lining Technology
Standard Glass Lining Technology stands out as one of India’s leading engineering equipment manufacturers, specializing in solutions for the pharmaceutical and chemical industries. The company offers a comprehensive range of services, from design and engineering to installation and commissioning. With eight manufacturing facilities in Telangana, the company has the capacity to produce reactors, receivers, and storage tanks ranging from 30 to 40,000 liters.
Serving over 347 clients, including industry giants like Granules India, Aurobindo Pharma, and Cadila Pharmaceuticals, Standard Glass Lining has established itself as a trusted partner in the pharma and chemical sectors.
Use of IPO Proceeds
The proceeds from the IPO will be strategically utilized to strengthen the company’s operations:
- ₹130 crore will go toward debt repayment.
- ₹30 crore will be invested in its subsidiary, S2 Engineering Industry.
- ₹20 crore is earmarked for inorganic growth, including strategic acquisitions.
- The remaining funds will be used for the purchase of machinery and corporate purposes.
Why Investors Are Excited
The impressive performance metrics of Standard Glass Lining Technology have caught the market’s attention. The company reported a revenue of ₹549.68 crore and a net profit of ₹60.01 crore in FY24, showcasing strong growth potential. As of September 2024, it had 460 full-time employees and 731 contract laborers, reflecting its robust operational infrastructure.
Furthermore, the Standard Glass Lining Technology IPO GMP (grey market premium) indicates positive sentiment, with investors eagerly awaiting its listing on January 13, 2025, on both the BSE and NSE.
Final Thoughts
The Standard Glass Lining Technology IPO is not just an investment opportunity but a testament to the growth and innovation in India’s engineering and manufacturing sectors. With its strong fundamentals and promising future, the company is set to make a significant impact post-listing.
For more insights on IPOs and other investment opportunities, visit Research and Investment.
Leave a Reply