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Standard Glass Lining Technology IPO subscribed 45.21 times on Day 3. Check GMP and other details
Team Finance Saathi
08/Jan/2025
What's covered under the Article:
- The Standard Glass Lining Technology IPO opens at ₹133-140 per share, with a promising 55% GMP.
- The IPO has been 34.82 times oversubscribed, indicating strong demand from investors.
- The IPO proceeds will be used for capital expenditure, repayment of borrowings, and strategic investments.
Standard Glass Lining Technology Limited is a leading manufacturer of specialized engineering equipment catering to the pharmaceutical and chemical sectors in India. The company’s capabilities include designing, engineering, and manufacturing turnkey solutions, covering everything from assembly and installation to commissioning and SOP (Standard Operating Procedures) development for its clients.
The IPO for Standard Glass Lining Technology is set to open on January 06, 2025, with a price band ranging from ₹133 to ₹140 per equity share. The total issue size is ₹410.05 Crores, consisting of a fresh issue of 150 Lakh shares worth ₹210.00 Crores and an Offer for Sale (OFS) of 142.89 Lakh shares, totaling ₹200.05 Crores.
At the upper price of ₹140 per share, the Market Capitalization of the company will be approximately ₹2,792.88 Crores. The lot size for the IPO is set at 107 shares, and retail investors need to invest a minimum of ₹14,980. High-Net-Worth Individuals (HNIs) must invest in 14 lots (1,498 shares), amounting to ₹2,09,720.
Grey Market Premium (GMP) and Subscription Trends:
As of January 07, 2025, the Grey Market Premium (GMP) for the IPO stands at ₹77, reflecting a 55.00% potential listing gain. The IPO was 34.82 times oversubscribed as of the second day of the subscription period, highlighting a strong interest from both retail and institutional investors.
The company has also raised ₹123.01 Crores from Anchor Investors at the upper price band of ₹140 per share, indicating confidence from major institutional investors. The IPO is expected to be listed on both BSE and NSE with a tentative listing date of January 13, 2025.
IPO Allotment Process:
The allotment date for the Standard Glass Lining Technology IPO is scheduled for January 09, 2025. Investors can check their allotment status on the registrar’s website by entering their application number, PAN, or DP Client ID. The allotment process ensures that investors can quickly determine their position and proceed with their investments.
Objectives of the IPO:
The funds raised through the IPO will be utilized for several strategic purposes:
- ₹100.00 million for capital expenditure to purchase machinery and equipment.
- ₹1,300.00 million for repaying or prepaying outstanding borrowings and investing in the wholly owned S2 Engineering Industry Private Limited.
- ₹300.00 million for funding S2 Engineering’s capital expenditure for machinery and equipment.
- ₹200.00 million for inorganic growth, including strategic investments and acquisitions.
- The remaining funds will be allocated for general corporate purposes.
Financial Performance and Valuation Metrics:
For the period ending September 30, 2024, the company reported revenues of ₹3,120.98 million and a Profit After Tax (PAT) of ₹362.68 million. The company’s EBITDA for the period was ₹627.08 million, indicating a strong performance despite industry challenges.
Key financial metrics include:
- Pre-issue EPS of ₹3.52 and post-issue EPS of ₹3.01 for FY24.
- Pre-issue P/E ratio of 39.77x, and post-issue P/E ratio of 46.54x.
- ROCE (Return on Capital Employed) for FY24 is 25.49%, indicating efficient use of capital.
- ROE (Return on Equity) and RoNW (Return on Net Worth) are both at 20.74%, reflecting strong returns for investors.
These metrics suggest that the IPO is fairly priced, with the 55% GMP supporting the potential for strong listing gains.
IPO Investment Recommendation:
Given the solid financial performance, a 55.00% GMP, and a 34.82 times oversubscription, the Standard Glass Lining Technology IPO appears to be an attractive opportunity for investors. The company’s specialization in engineering equipment for the pharmaceutical and chemical sectors positions it for continued growth in these industries.
We recommend applying for the Standard Glass Lining Technology IPO based on its fair pricing and strong listing gain potential.
The Upcoming IPOs in this week and coming weeks are Sat Kartar Shopping,Barflex Polyfilms.