Agarwal Toughened Glass India Limited is a leader in providing design ideas and trends for various types of glass, including Toughened Glass, Laminate Safety Glass, IG Unit Glass, Heat Soaked Glass, Heat Strengthened Glass, Low E Glass/High Performance Glass, Tinted Glass, and Reflective Glass. The company has established itself as a prominent player in the glass manufacturing sector, supplying innovative and high-quality products to various industries.

The company is currently offering a Book Built Issue of ₹62.63 Crores, consisting entirely of a fresh issue of 57.99 lakh shares. The IPO subscription period opens on November 28, 2024, and closes on December 2, 2024. The share price band is set between ₹105 to ₹108 per equity share, with the market capitalization of the company at the upper price band reaching ₹190.88 Crores. The lot size for the IPO is 1,200 shares, requiring retail investors to invest a minimum of ₹1,29,600. For High-Net-Worth Individuals (HNIs), the minimum investment is 2 lots (2,400 shares), totaling ₹2,59,200.

The IPO is managed by Cumulative Capital Private Limited as the book-running lead manager and KFIN Technologies Limited as the registrar. Nikunj Stock Brokers Limited acts as the market maker for the IPO.

IPO Subscription Status and Anchor Investment Insights

As of December 2, 2024, the IPO subscription was 9.25 times oversubscribed on its final day, indicating strong demand. In addition, Agarwal Toughened Glass India raised ₹17.82 Crores from anchor investors at the upper price of ₹108 per share, indicating confidence from institutional investors.

The allotment date for the IPO is set for December 3, 2024, and investors can check the allotment status on the registrar's website.

Financial Performance and Market Metrics

Agarwal Toughened Glass India has shown steady financial growth over the years. The revenues for the Six Months of FY2024 stood at ₹2,349.73 Lakhs, a slight decrease from ₹4,060.32 Lakhs in FY2023 but still an improvement from the ₹3,471.99 Lakhs in FY2022. The EBITDA for the six-month period in FY2024 was ₹697.50 Lakhs, showing solid growth compared to ₹474.90 Lakhs in FY2023.

The company’s Profit After Tax (PAT) for the six months of FY2024 was ₹453.92 Lakhs, up significantly from ₹96.97 Lakhs in FY2023, reflecting improved profitability. For FY2022, the company reported a PAT of ₹50.18 Lakhs.

The company has a pre-issue earnings per share (EPS) of ₹7.31 and a post-issue EPS of ₹4.91. The pre-issue P/E ratio stands at 14.77x, while the post-issue P/E ratio increases to 21.99x. Given that the industry’s average P/E ratio is 110.70x, the IPO appears to be fairly priced relative to its peers. The company's Return on Capital Employed (ROCE) for FY24 is 31.34%, and the Return on Equity (RoE) is 72.59%, indicating strong profitability metrics.

Grey Market Premium (GMP) and Investment Recommendation

The Grey Market Premium (GMP) for the Agarwal Toughened Glass India IPO is reported to be ₹0, indicating no immediate listing gains expected from the grey market. As grey market trading is speculative and unregulated, it is not a reliable indicator of post-listing performance.

Objectives of the IPO

The funds raised from the fresh issue will be allocated towards:

1. ₹966.81 Lakhs for the purchase of machinery at the company’s existing manufacturing unit.
2. ₹600.00 Lakhs for the repayment of certain borrowings.
3. ₹2,500.00 Lakhs for meeting incremental working capital requirements.
4. General corporate expenses.
   
   

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Investment Advice

Given the financial performance, valuation, and industry comparison, we recommend that investors avoid the Agarwal Toughened Glass India IPO for listing gains or long-term investments. The fair pricing, combined with the zero GMP and moderate financial growth, makes this IPO less attractive for those seeking short-term returns.

How to Check Allotment Status

Once the allotment is finalized on December 3, 2024, follow these steps to check your Agarwal Toughened Glass India IPO allotment status:

1. Visit the registrar's website.
2. Select Agarwal Toughened Glass India Limited IPO from the dropdown.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to view your allotment status.

Conclusion

The Agarwal Toughened Glass India IPO offers a fair price and solid financials but lacks the immediate potential for listing gains, based on current market sentiment and the GMP. We recommend that investors exercise caution and consider alternative investment opportunities for higher returns in the short term.

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