Standard Glass Lining Technology Limited, a key player in specialized engineering solutions for the pharmaceutical and chemical sectors, is launching its IPO for 2025. The company designs, engineers, manufactures, assembles, installs, and commissions high-quality equipment for critical industries, focusing on turnkey solutions. The IPO is a Book Built Issue amounting to ₹410.05 Crores, with 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 subscription period begins on January 06, 2025, and concludes on January 08, 2025, with allotment expected by January 09, 2025, and a tentative listing date of January 13, 2025.

IPO Share Price and Market Capitalization

The price band for the Standard Glass Lining Technology IPO is set at ₹133 to ₹140 per share, with a market capitalization of ₹2,792.88 Crores at the upper price of ₹140. Investors can apply in multiples of 107 shares, with a minimum investment of ₹14,980 for retail investors. High-net-worth individuals (HNIs) must apply for at least 14 lots, totaling ₹2,09,720.

Standard Glass Lining Technology IPO Subscription and Grey Market Premium

As of January 07, 2025, the Standard Glass Lining Technology IPO has been subscribed 20.96 times on its second day of subscription. The Grey Market Premium (GMP) stands at ₹60, suggesting a potential listing gain of 42.86%. While GMP is based on unregulated market conditions, it gives a rough indication of investor sentiment towards the stock, highlighting strong demand and interest.

Financial Performance and Key Metrics

For the period ending September 30, 2024, Standard Glass Lining Technology reported revenues of ₹3,120.98 million and an EBITDA of ₹627.08 million. The company’s profit after tax (PAT) for FY24 is ₹362.68 million, reflecting consistent growth compared to previous years. EPS pre-issue stands at ₹3.52, while the post-issue EPS is ₹3.01. The pre-issue P/E ratio is 39.77x, and the post-issue P/E ratio rises to 46.54x. For comparison, the industry P/E ratio is 55x, indicating the IPO is fairly priced.

With a Return on Capital Employed (ROCE) of 25.49% and a Return on Equity (ROE) of 20.74%, the company's financials are strong, making it an attractive option for potential investors. Based on these factors, the IPO is expected to provide a decent listing gain.

Objectives and Use of IPO Proceeds

Standard Glass Lining Technology intends to utilize the net proceeds from the IPO for various strategic purposes:

1. Funding Capital Expenditure for machinery and equipment: ₹100.00 Million.
2. Repayment of Borrowings for both the company and its subsidiary, S2 Engineering Industry Private Limited: ₹1,300.00 Million.
3. Investment in Subsidiary for capital expenditure: ₹300.00 Million.
4. Inorganic Growth via strategic investments and acquisitions: ₹200.00 Million.
5. General Corporate Purposes.

These objectives aim to bolster the company’s growth prospects and strengthen its position in the market.

Anchor Investors and Allotment Process

Standard Glass Lining Technology has raised ₹123.01 Crores from anchor investors, who have been allotted 87,86,809 shares at ₹140 per share. The IPO allotment date is January 09, 2025, and investors can check the allotment status by visiting the registrar's website. To check the status, investors must enter their application number, PAN, or DP Client ID.

Should You Apply for Standard Glass Lining Technology IPO?

Given the company's solid financial track record, strong subscription demand, and the potential listing gains indicated by the Grey Market Premium, the Standard Glass Lining Technology IPO is an attractive opportunity. Investors looking for a company with steady growth and solid financials should consider applying for this IPO, especially with its strong return on equity and capital employed.

The Upcoming IPOs in this week and coming weeks are Sat Kartar Shopping,Barflex Polyfilms.

The Current active IPO are   Indobell Insulation, Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, Avax Apparels, B R Goyal, Fabtech Technologies.

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