Standard Glass Lining IPO Day 1 Live Updates: Standard Glass Lining Technology is poised to become the first major IPO on the mainboard in 2025, opening for subscription today (Monday, January 6). On Friday, the company announced that it has secured ₹123 crore from anchor investors in advance of its initial public offering. The issue, priced between ₹133 and ₹140 per share, will close on January 8.
The total public issue amounting to ₹410.05 crore consists of a fresh issuance of equity shares worth ₹210 crore and an offer for sale (OFS) of up to 1.43 crore shares by its promoters and other selling stakeholders, as indicated in the red herring prospectus (RHP).
Shareholders participating in the sale through the OFS include S2 Engineering Services, Kandula Ramakrishna, Kandula Krishna Veni, Nageswara Rao Kandula, Standard Holdings, Katragadda Venkata Ramani, and Venkata Siva Prasad Katragadda.
The company plans to use ₹130 crore from the fresh issue to repay debts and allocate ₹30 crore for investment in its wholly-owned subsidiary, S2 Engineering Industry.
Standard Glass Lining Technology provides a wide range of solutions that cover design, engineering, manufacturing, assembly, installation, commissioning, and the establishment of standard operating procedures for pharmaceutical and chemical producers on a turnkey basis.
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Standard Glass Lining IPO Day 1 Live Updates: Here’s all you need to know about the market and client base
- Operates in a ₹1,500 crore annual growth market.
- Serves 800 out of India’s 6,000 potential clients.
- Aim for significant export revenue growth (20% in the next year) with margins double those of domestic sales.
- Holds a robust ₹450 crore order book supported by 20-30% advances.
- Sector contributions: Pharma (82%), Agrochemicals (13%), Other industries (5%).
Standard Glass Lining IPO Day 1 Live Updates: Check out competitive strengths
- One of the top five specialized engineering equipment manufacturers for pharmaceutical and chemical sectors in India with products across entire value chain.
- Customized and innovative product offering across the entire pharmaceutical and chemical manufacturing value chain.
- Strategically located manufacturing facilities with advanced technological capabilities.
Standard Glass Lining IPO Day 1 Live Updates: All you need to know about products and services
The company’s products cater to a range of end-use industries such as pharmaceuticals, agrochemicals, speciality and fine chemicals, active pharmaceutical ingredients, food and bulk chemicals. The company has significantly expanded and diversified its product portfolio in recent years, strategically focusing on glass lined reactors and receivers, stainless steel and nickel alloy equipment, filtration and drying equipment and heat exchangers used in the pharmaceutical, chemical and food industries.
Standard Glass Lining IPO Day 1 Live Updates: Check out manufacturing facilities
The company has 8 manufacturing facilities spread across ~400,000 sq. ft.,strategically located in Hyderabad, Telangana. The company’s manufacturing capabilities are complemented by a sales, service and distribution network operating from 4 sales offices located in Vadodara, Gujarat, Ankleshwar, Gujarat, Mumbai, Maharashtra and Vishakhapatnam, Andhra Pradesh and sales team members in Jhagadia, Gujarat, Chennai, Tamil Nadu, New Delhi, Bengaluru, Karnataka and Vijayawada, Andhra Pradesh with pan-India reach.
Standard Glass Lining IPO Day 1 Live Updates: All you need to know about the order book
The firm features a strong order portfolio valued at ₹450 crore, focusing on automation and improved operational efficiency. The organization aims to achieve a 20% share of its revenue from exports in the upcoming fiscal year by utilizing proprietary technology from its Japanese partner, AGI, renowned for its high-margin products. SGL’s strategic expansion into maintenance services greatly boosts customer loyalty, resulting in 100% repeat business, thanks to a product lifespan of 15 years,
Standard Glass Lining IPO Day 1 Live Updates: Issue booked 7.06x so far on the first bidding day
The initial public offer of Standard Glass Lining IPO has been subscribed 7.06x on the first day of subscription today, at 13:09 IST, as per BSE data.
The initial share sale received bid for 14,70,96,003 shares against 2,08,29,567 shares on offer, according to BSE.
The portion for retail investors received 9.04x subscription while the quota for non-institutional investors got subscribed 11.50x. The qualified institutional buyers (QIBs) part is booked 1%.
Standard Glass Lining IPO Day 1 Live Updates: Check out company details
Standard Glass Lining Technology is a Hyderabad-based engineering equipment manufacturer for the pharmaceutical (82% of FY24 revenue) and chemical sectors (13%). Established in 2012, SGLTL offers design, engineering, manufacturing, assembly, installation, and commissioning services. Its product portfolio includes reaction systems (57% of FY24 revenue), storage, separation & drying systems (30%), and plant engineering and services (13%). The company operates 8 manufacturing facilities in Telangana and serves 347 clients with over 65 products as of September 30, 2024.It had a ~ 17% market share in India’s glass lined equipment market as of FY24.
Standard Glass Lining IPO Day 1 Live Updates: Here’s what SBICAP Securities says about the issue
The company is currently valued at a price-to-earnings (P/E) ratio of 39.77x, which is favourable compared to the industry average of 52.50x. SGL exhibits a strong return on equity (RoE) of 20.74%, surpassing the sector’s average of 16.96%. Anticipated capacity expansion and export-driven growth are projected to further bolster the company’s financial ratios. Given SGL’s market leadership, extensive client base, and strategic growth initiatives, We recommend to SUBSCRIBE to this issue for listing & long-term gains.
Standard Glass Lining IPO Day 1 Live Updates: Issue booked 5.27x so far on the first bidding day
The initial public offer of Standard Glass Lining IPO has been subscribed 5.27x on the first day of subscription today, at 12:00 IST, as per BSE data.
The initial share sale received bid for 10,97,23,685 shares against 2,08,29,567 shares on offer, according to BSE.
The portion for retail investors received 6.92x subscription while the quota for non-institutional investors got subscribed 8.18x. The qualified institutional buyers (QIBs) part is yet to be booked.
Standard Glass Lining IPO Day 1 Live Updates: All you need to know about the industry
The Glass-Lined Equipment (GLE) industry is poised for significant growth, driven by multiple factors. GLE protects the contained media from exposure to water, other chemicals, alkalis, and corrosion, providing a desirable environment for storing the media. GLE is resistant to contamination and capable of operating in a variety of environments.
Standard Glass Lining IPO Day 1 Live Updates: Check out company’s peers
The company’s listed peers are GMM Pfaudler Ltd (with a P/E of 30.64), HLE Glascoat Ltd (with a P/E of 56.54), Thermax Ltd (with a P/E of 81.24), and Praj Industries (with a P/E of 52.54).
Standard Glass Lining IPO Day 1 Live Updates: Issue booked 3.61x so far on the first bidding day
The initial public offer of Standard Glass Lining IPO has been subscribed 3.61x on the first day of subscription today, at 11:15 IST, as per BSE data.
The initial share sale received bid for 7,52,68,080 shares against 2,08,29,567 shares on offer, according to BSE.
The portion for retail investors received 4.96x subscription while the quota for non-institutional investors got subscribed 5.10x. The qualified institutional buyers (QIBs) part is yet to be booked.
Standard Glass Lining IPO Day 1 Live Updates: Check out firm’s strengths
- One of the top five specialised engineering equipment manufacturers for pharmaceutical and chemical sectors in India with products across entire value chain.
- Company offers Customized and innovative product offering across the entire pharmaceutical and chemical manufacturing value chain.
Standard Glass Lining IPO Day 1 Live Updates: Here’s what Geojit Financial Services views
At the upper price band of Rs.140, SGLTL is available at a P/E of 38.5x (on FY25 Annualised), which appears fairly priced compared to peers. The growing demand for glass-lined equipment in pharmaceuticals and chemicals offers significant growth potential. SGLTL’s healthy margins, consistent revenue growth robust growth outlook, a diverse product portfolio with a focus on customization, and inorganic growth plans support a “Subscribe” rating for the stock on a medium to longterm basis.
Standard Glass Lining IPO Day 1 Live Updates: Check out some of the key risks
- Geographical concentration of manufacturing facilities
- Challenges in raw material sourcing and supply chain
- Dependency on pharmaceutical industry
- Negative operating cashflows
- Underutilization of capacity
Standard Glass Lining IPO Day 1 Live Updates: Issue booked 44% so far on the first bidding day
The initial public offer of Standard Glass Lining IPO has been subscribed 44% on the first day of subscription today, at 10:12 IST, as per BSE data.
The initial share sale received bid for 92,26,075 shares against 2,08,29,567 shares on offer, according to BSE.
The portion for retail investors received 49% subscription while the quota for non-institutional investors got subscribed 89%. The qualified institutional buyers (QIBs) part is yet to be booked.
Standard Glass Lining IPO Day 1 Live Updates: Check out the firm’s portfolio
Their portfolio comprises: 1. Reaction Systems (54% of sales); 2. Storage, Separation & Drying Systems (33% of sales); 3. Plant, Engineering & Service (13% of sales) as of Q2FY25. Segment mix (As on Sept-24): Pharmaceuticals – 75%, Chemicals – 13%, Others (Paint, Biotech, F&B) – 12%.
Standard Glass Lining IPO Day 1 Live Updates: All you need to know about the firm’s clients
Their marquee clients include approx. 30 of 80 pharma and chemical companies in NSE 500 as of June 30, 2024. Some of its pharma clients include Aurobindo Pharma, Cadila Pharmaceutical, Granules India Ltd, Macleods Pharmaceuticals, Piramal Pharma, and Suven Pharmaceuticals.
Standard Glass Lining IPO Day 1 Live Updates: Check out Indsec Securities views on the issue
As per the brokerage, the firm focuses on fabrication and precision engineering tools for pharmaceutical and chemical sectors, and is well-positioned to capitalize on rising global demand resulting from the China+1 strategy and governmental backing through the PLI scheme. The Indian chemical manufacturing sector is anticipated to grow at a 9% CAGR, reaching ₹70 billion by FY26, while capital expenditure in the pharmaceutical industry is expected to stay between ₹120-150 billion each year until FY27. The firm has given the IPO a “SUBSCRIBE” rating.
Standard Glass Lining IPO Day 1 Live Updates: All you need to know about the objectives of the issue
The company plans to use proceeds from the new issue amounting to ₹130 crore for repaying debts, while ₹30 crore will be allocated for investment in its wholly-owned subsidiary, S2 Engineering Industry.
Additionally, ₹20 crore will be directed towards inorganic growth through strategic investments or acquisitions, ₹10 crore is earmarked for the acquisition of machinery and equipment, and a portion of the funds will also be designated for general corporate purposes.
Standard Glass Lining IPO Day 1 Live Updates: Check out IPO reservation
50% of the issue is reserved for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors.
Standard Glass Lining IPO Day 1 Live Updates: Check out key dates
Tentatively, Standard Glass Lining IPO basis of allotment of shares will be finalised on Thursday, January 9, and the company will initiate refunds on Friday, January 10, while the shares will be credited to the demat account of allottees on the same day following refund. Standard Glass Lining share price is likely to be listed on BSE and NSE on Monday, January 13.
Standard Glass Lining IPO Day 1 Live Updates: All you need to know about anchor investors
Standard Glass Lining Technology announced on Friday that it has raised ₹123 crore from anchor investors in anticipation of its initial public offering, which is set to open for public subscription on January 6.
The anchor investors include ICICI Prudential Mutual Fund (MF), Kotak MF, Tata MF, Motilal Oswal MF, 3P Investment Managers, Kotak Infinity Fund – Class AC, ITI MF, the Massachusetts Institute of Technology, Amansa Holdings, and Clarus Capital, as stated in a circular posted on the BSE website.
The circular indicates that Standard Glass Lining Technology Ltd has issued 87.86 lakh shares to 10 investors at a price of ₹140 per equity share, which also represents the upper limit of the price range. This brings the total size of the transaction to ₹123.01 crore.
Standard Glass Lining IPO Day 1 Live Updates: Here’s what GMP hints on the first bidding day
Standard Glass Lining IPO GMP today is +97. This indicates Standard Glass Lining share price was trading at a premium of ₹97 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Standard Glass Lining share price is indicated at ₹237 apiece, which is 69.29% higher than the IPO price of ₹140.
Grey market activity over the prior nine sessions indicates that today’s IPO GMP is positive and anticipates a successful listing. According to experts on investorgain.com, the lowest GMP is ₹0, and the maximum is ₹97.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
