Standard Glass Lining IPO: GMP, Price,Date & Overview

Standard Glass Lining IPO - Complete Overview 

Standard Glass Lining IPO a Mainboard IPO is a book-built issue of Rs.410.05 Cr (2,92,89,367 Cr Shares) by Standard Glass Lining Technology Limited incorporated in September 2012. It is an engineering equipment manufacturing company for the pharmaceutical and chemical sectors in India and is capable of completely in-house production.

The company is capable of providing complete turnkey solutions in design, engineering, manufacturing, assembly, installation, and standard operating procedures for pharmaceutical and chemical manufacturers.

Some of the customers include Aurobindo Pharma Limited, Cohance Lifesciences Limited, Cadila Pharmaceutical Limited, Deccan Fine Chemicals (India) Private Limited, Dasami Lab Private Limited, Laurus Labs Limited, Granules India Limited, Natco Pharma Limited, CCL Food and Beverages Private Limited, MSN Laboratories Private Limited, Honour Lab Limite, Hetero Labs Limited, Hazelo Lab Private Limited, Piramal Pharma Limited, Hetero Drugs Limited, Sanvira Biosciences Private Limited, Macleods Pharmaceuticals Limited, Suven Pharmaceuticals Limited, Apitoria Pharma Private Limited, Vamsi Labs Limited, Tagros Chemicals India Private Limited, and Viyash Life Sciences Private Limited.

Eight manufacturing units belong to the company located in Hyderabad, Telangana.

The company has sales offices located in Vadodara, Gujarat, Ankleshwar, Gujarat, Mumbai, Maharashtra and Vishakhapatnam, Andhra Pradesh. The sales team members are based in Jhagadia, Gujarat, Chennai, Tamil Nadu, New Delhi, Bengaluru, Karnataka, Vijayawada, and Andhra Pradesh with pan-India reach. 

Detailed Video

This new IPO is to be launched on 06 January 2025, and the initial public offering of this upcoming IPO will end on 08 January 2025.

Standard Glass Lining Technology Limited Product Portfolio: 

Product portfolios are:

1. Reactions

2. Storage Separation and Drying

3. Plants, Engineering, and Services

It produces specialized engineering appliances using glass lining, stainless steel, and nickel alloy.

Standard Glass IPO Details

The Rs.410.05 Crore Standard Glass Lining Technology IPO comprises a combination of a fresh issue of 1.50 Cr Shares (Rs.210 Cr) and an offer for sale (OFS) of 1.43 Cr Shares (Rs.200.05 Cr). The IPO listing date is on January 13, 2024. Standard Glass Lining IPO price is Rs.133 to Rs.140. 

If you want to apply for the IPO, Click Here to open a Demat Account.

Company Financial

Between FYs ended 31 March 2024 and 31 March 2023, the company's revenue grew by 10%, and PAT increased by 12%.

(Amount in Crore)

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

Industry-wise Revenue from Operations

(Amount in millions)

Business-wise Revenue Bifurcation

(Amount in millions)

(Source RHP)

The Objective of the Issue

• Financing the company's capital expenditure needs for the acquisition of machinery and equipment.

• Repayment or partial prepayment of all or a portion of certain outstanding borrowings obtained by the Company and investment in S2 Engineering Industry Private Limited, a wholly owned Material Subsidiary from Banks and other financial institutions.

• Investment in S2 Engineering Industry Private Limited, a fully owned Material Subsidiary.

• Funding inorganic growth by means of strategic investments and/or acquisitions.

Peers of Standard Glass Lining Technology Limited

Evaluation

The Standard Glass Lining Limited IPO price band is between Rs.133 to Rs.140 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.3.52 from the last year, the resulting P/E ratio is 39.77x. 

Considering the weighted EPS of Rs.3.29 for the last three years, the P/E ratio is 42.55x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 55.24x.

IPO's Strengths

• Manufacturers of specialized engineering equipment serving the pharmaceutical and chemical verticals.

• Full customized and innovation-based product range spanning the entire manufacturing value chain of the pharmaceutical and chemical industry.

• Strategically located manufacturing plants equipped with advance technologies.

• Long relationships with marquee clientele across all sectors.

• Consistently profitable growth record.

  

IPO’s Weaknesses

• Reliance on Manufacturing Facilities: The dependence on manufacturing facilities is within Telangana, India. Risks include accidents, natural calamities, and economic and political changes in that location which could adversely affect operations and financial performance.

• Dependent/Skilled Workforce: Availability and retention of skilled labor are critical. Engaging the right people does not negatively impact business operations and financial health.

• Supplier Concentration: It means that very few of them supply very important raw materials like stainless steel, nickel alloys, and chemicals. Any disruption with any of these suppliers will affect the manufacturing process and supply lead time.

• Industry-Dependent: Most of it is generated from the pharmaceutical industry and chemicals, wherein adverse economic or industry-specific challenges would directly impact a company's fortunes.

• Negative cash flow history: Previous operating activities have shown negative cash flows that pose a threat to subsequent operating and financial commitments. 

Standard Glass Lining IPO GMP

Standard Glass Lining IPO GMP today is Rs.0 as of 31 December 2024. With the price of Rs.140, the estimated Standard Glass Lining IPO listing price is Rs.140 while writing this information.

Standard Glass Lining Limited IPO Timetable (Tentative)

The Standard Glass Lining IPO date is from 06 January to 08 January, with IPO allotment on 09 January, and refund initiation on 10 January 2025. The IPO listing date is on 13 January 2025.

IPO Other Details 

The IPO with a face value of Rs.10 per Share, offers an IPO size of 2,92,89,367 Shares (Rs.410.05 Cr) and it will be listed at BSE and NSE.

Standard Glass Lining IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (107 Shares) amounting to Rs.14980 and 13 Lots (1391 Shares) amounting to Rs.1,94,740 respectively, while for HNI investors, the minimum Lot is 14 (1498 Shares) amounting to Rs.2,09,720.

IPO Reservation

• Nageswara Rao Kandula

• Kandula Krishna Veni

• Kandula Ramakrishna

• Venkata Mohana Rao Katragadda

• Kudaravalli Punna Rao

• M/s S2 Engineering Services.
  
  

IPO Lead Managers

• IIFL Securities Ltd.

• Motilal Oswal Investment Advisors Limited.
  
  

Dividend Policy

The company has not paid a dividend in the last three FYs.

Conclusion

The Standard Glass Lining IPO provides an opportunity to invest in a company that has started growing and catering mainly to the growing engineering needs of the pharmaceutical and chemical sectors in strengthening customer ties and manufacturing locations. Even though the initial pricing appears reasonable, as compared with other industrial peers, one must also consider challenges like supplier dependency and net negative cash flows. Investors need to be aware of having weighed any risks and prospects before investing.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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