Standard Glass Lining Technology Limited IPO Review

Standard Glass Lining Technology Limited IPO Review

Key Highlights

• IPO Opening Date: January 6, 2025
• IPO Closing Date: January 8, 2025
• Price Band: ₹133 to ₹140 per share
• Issue Size: ₹410.05 crore
• Grey Market Premium (GMP): Information currently unavailable

About Standard Glass Lining Technology Limited

Standard Glass Lining Technology Limited is a specialized engineering equipment manufacturer, focusing on glass-lined equipment primarily used in the pharmaceutical and chemical sectors. The company has a significant presence in these industries, with over 88.20% of its revenue in recent fiscals derived from clients in these sectors.

IPO Details

• Fresh Issue: ₹210 crore
• Offer for Sale (OFS): ₹200.05 crore
• Face Value: ₹10 per share
• Lot Size: 107 shares
• Minimum Investment: ₹14,980 at the upper price band
• Listing At: BSE and NSE
• Promoter Holding Pre-IPO: 72.49%
• Promoter Holding Post-IPO: Data not specified

Important Dates

• Basis of Allotment Date: January 9, 2025
• Refunds Initiation: January 10, 2025
• Credit of Shares to Demat: January 10, 2025
• IPO Listing Date: January 13, 2025

Objectives of the IPO

• Purchase of Machinery: To enhance production capabilities and meet growing demand.
• Repayment of Borrowings: To strengthen the company's financial position by reducing debt.

Financial Performance

In the fiscal year ending March 31, 2024, the company reported an operating income of approximately ₹625-650 crore, with a stable margin of around 17-18%, supported by higher export revenue.

Risks and Considerations

• Sector Concentration: A significant portion of revenue is derived from the pharmaceutical and chemical sectors, making the company susceptible to downturns in these industries.
• Market Competition: The specialized engineering equipment market is competitive, with several established players.
• Financial Leverage: The company plans to use a portion of the IPO proceeds to repay existing borrowings, indicating current debt levels that investors should consider.

Conclusion

Standard Glass Lining Technology Limited's IPO offers investors an opportunity to invest in a company with a strong presence in the pharmaceutical and chemical equipment manufacturing sector. Potential investors should weigh the company's financial performance, sector concentration, and the intended use of IPO proceeds when making investment decisions.