Agarwal Toughened Glass India Limited is a leading source for trend insights and design ideas related to a variety of glass products such as 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. Known for its innovative approach, Agarwal Toughened Glass aims to complement design aesthetics with high-quality glass offerings.

The Agarwal Toughened Glass India IPO is a Book Built Issue amounting to ₹62.63 Crores, consisting entirely of a Fresh Issue of 57.99 Lakh Shares. The subscription period began on November 28, 2024, and will close on December 02, 2024. The allotment is expected to be finalized on December 03, 2024, with a tentative listing date of December 05, 2024, on the NSE SME.

IPO Price Band and Market Capitalization

• Price Band: ₹105 to ₹108 per equity share.
• Market Capitalization (at ₹108 per share): ₹190.88 Crores.
• Lot Size: 1,200 shares.
• Retail Investor Minimum Investment: ₹1,29,600 (1 lot).
• HNIs Minimum Investment: ₹2,59,200 (2 lots).

CUMULATIVE CAPITAL PRIVATE LIMITED is the book-running lead manager, and KFIN TECHNOLOGIES LIMITED is the registrar for the issue, while Nikunj Stock Brokers Limited is the market maker for the Agarwal Toughened Glass India IPO.

Grey Market Premium (GMP) and Market Insights

The Grey Market Premium (GMP) for the Agarwal Toughened Glass India IPO is currently ₹0, indicating no significant expected listing gains. The GMP can be an unregulated indicator, and it's essential to treat it as such since it’s not necessarily reflective of the true market value. The Grey Market Premium is mainly driven by demand and supply dynamics in the unorganized market, and real price discovery only happens once the shares are listed.

Subscription Status

As of 11:00 AM on December 2, 2024, the IPO has been subscribed 1.81 times on its final day of subscription. You can check the live subscription status of the IPO on the NSE platform.

Agarwal Toughened Glass India IPO Anchor Investors Report

The company raised ₹17.82 Crores from Anchor Investors at a price of ₹108 per share. A total of 16,50,000 equity shares were allocated to the Anchor Investors, reflecting confidence in the company's future prospects.

Agarwal Toughened Glass India IPO Allotment Process

• Allotment Date: December 03, 2024.
• To check the allotment status, visit the Registrar’s website and input your application number, PAN, or DP Client ID.

Objectives of Agarwal Toughened Glass India IPO

The proceeds from the Fresh Issue will be used for the following purposes:

1. ₹966.81 Lakhs for the purchase of machinery for the existing manufacturing unit.
2. ₹600.00 Lakhs for repayment of certain borrowings.
3. ₹2,500.00 Lakhs for meeting incremental working capital requirements.
4. General Corporate Expenses.

Financial Performance and Valuation

• Revenues for the six months ending September 30, 2024: ₹2,349.73 Lakhs.

• EBITDA for the six months ending September 30, 2024: ₹697.50 Lakhs.

• Profit After Tax for the six months ending September 30, 2024: ₹453.92 Lakhs.

• Pre-issue EPS: ₹7.31

• Post-issue EPS: ₹4.91

• Pre-issue P/E: 14.77x

• Post-issue P/E: 21.99x

• Industry P/E: 110.70x

The Agarwal Toughened Glass India IPO appears to be fairly priced with a pre-issue P/E ratio of 14.77x, significantly lower than the industry P/E ratio of 110.70x, suggesting that the company may be undervalued compared to industry peers. However, the post-issue P/E ratio rises to 21.99x, which reflects the impact of the fresh issue of shares.

Risk and Recommendation

Based on the company’s financial performance and valuation metrics, the IPO appears to be fairly priced, with an acceptable P/E ratio. However, the Grey Market Premium suggests no immediate listing gains, and the relatively low GMP further confirms that there may not be a strong upside post-listing.

We recommend investors to avoid the Agarwal Toughened Glass India IPO for both listing gains and long-term investment purposes, unless they are confident about the company’s future growth in the highly competitive glass industry.

About Agarwal Toughened Glass India Limited

Agarwal Toughened Glass India is known for its extensive portfolio of glass products, ranging from toughened glass to reflective glass. Led by Anita Agarwal, Mahesh Kumar Agarwal, Uma Shankar Agarwal, and Sharda Agarwal, the company has positioned itself as a leader in the glass manufacturing sector with a focus on both design and durability.

Disclaimer

This article is based on publicly available information and should not be considered as financial advice. Always perform your own due diligence or consult a professional before making any investment decisions.