Standard Glass Lining Technology Limited IPO is an exciting offering for investors seeking exposure to the pharmaceutical and chemical sectors in India. As one of the top five specialized engineering equipment manufacturers, the company specializes in providing turnkey solutions for glass lining technologies, including design, engineering, manufacturing, installation, and commissioning of equipment. With a long history of engineering excellence, Standard Glass Lining Technology serves a diverse range of industries, ensuring high-quality solutions for pharmaceutical and chemical manufacturers.

The IPO is a Book Built Issue with a total issue size of ₹410.05 Crores, consisting of a fresh issue of 150 Lakh shares worth ₹210.00 Crores and an offer for sale of 142.89 Lakh shares worth ₹200.05 Crores. The price band is set between ₹133 to ₹140 per share, and the market capitalization at the upper price band will be approximately ₹2,792.88 Crores. The lot size for the IPO is 107 shares, with retail investors required to invest a minimum of ₹14,980. High-Net-Worth Individuals (HNIs) must invest ₹2,09,720 (14 lots or 1,498 shares).

Company Overview

Standard Glass Lining Technology is recognized for its specialized engineering solutions in the glass lining industry, catering to the growing needs of the pharmaceutical and chemical sectors. The company has a robust track record of offering customized solutions and ensuring quality compliance. The leadership team, with over 10 to 14 years of combined industry experience, continues to drive the company's success with strong technical expertise and innovation.

Financial Performance

Standard Glass Lining Technology has posted a consistent growth trajectory over the past few years:

• Revenues from operations for FY2024 stood at ₹3,120.98 Million, reflecting a significant increase from ₹2,415.02 Million in FY2022.
• EBITDA for FY2024 was ₹627.08 Million, with a Profit After Tax (PAT) of ₹362.68 Million.
• The company continues to show positive growth trends, with a solid foundation in its core markets.

Key Metrics and Valuation

The pre-issue EPS is ₹3.52, while the post-issue EPS is expected to be ₹3.01 for FY24. The pre-issue P/E ratio stands at 39.77x, with the post-issue P/E ratio increasing to 46.54x, indicating potential dilution from the new issue of shares. Compared to the industry P/E ratio of 55x, the IPO appears fairly priced. The company also boasts a high ROCE of 25.49%, ROE of 20.74%, and a RoNW of 20.74%, signaling strong returns on invested capital.

Grey Market Premium (GMP)

As of January 2, 2025, the Grey Market Premium (GMP) for Standard Glass Lining Technology IPO is ₹40, indicating potential listing gains of 42.86%. While the GMP reflects investor sentiment in the unregulated market, it is essential to exercise caution as GMP-based trading is unorganized and speculative. Investors should focus on the fundamentals of the IPO when making decisions.

IPO Subscription and Allotment Status

The subscription period for the Standard Glass Lining Technology IPO will begin on January 6, 2025, and close on January 8, 2025. Investors can check the allotment status on the registrar’s website starting from January 9, 2025. To check the allotment status, follow these steps:

• Visit the IPO allotment status page.
• Select Standard Glass Lining Technology Limited IPO from the dropdown.
• Enter your application number, PAN, or DP Client ID.
• Submit the details to view the allotment status.

Objectives of the IPO

The net proceeds from the IPO will be utilized for the following purposes:

1. ₹100.00 Million for the purchase of machinery and equipment.
2. ₹1,300.00 Million for repaying or prepaying outstanding borrowings.
3. ₹300.00 Million for investing in S2 Engineering Industry Private Limited.
4. ₹200.00 Million for funding strategic acquisitions and inorganic growth.
5. General corporate purposes.

Recommendation and Conclusion

Given the company's solid financials, strong market position, and attractive GMP, the Standard Glass Lining Technology IPO presents a promising investment opportunity. With a fairly priced IPO and potential listing gains, we recommend that investors apply for the IPO, especially those looking to gain exposure to the growing engineering equipment market serving the pharmaceutical and chemical industries.

The Upcoming IPOs in this week and coming weeks are Indobell Insulation, Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, Avax Apparels and B R Goyal.

The Current active IPO are   Fabtech Technologies, Davin Sons and Parmeshwar Metal.

For more updates on executive appointments and other business developments, we encourage readers to explore related news and articles, including the latest on IPOs, share market updates, and financial strategies at:
Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi
Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.