Company Overview: Standard Glass Lining Technology Limited is a prominent manufacturer specializing in glass-lined equipment, catering to industries such as pharmaceuticals, chemicals, and food processing. The company is set to launch its Initial Public Offering (IPO) to raise capital for expansion and other corporate purposes.
IPO Details:
- Issue Size: ₹410.05 crore, comprising a fresh issue of ₹210 crore and an offer for sale of ₹200.05 crore.
- Price Band: ₹133 to ₹140 per equity share.
- Face Value: ₹10 per share.
- Lot Size: 107 shares per lot.
- Minimum Investment: ₹14,980 for one lot (107 shares).
- Issue Type: Book Built Issue IPO.
- Listing At: NSE and BSE.
Important Dates:
- IPO Opening Date: January 6, 2025.
- IPO Closing Date: January 8, 2025.
- Basis of Allotment: January 9, 2025.
- Refunds Initiation: January 10, 2025.
- Credit of Shares to Demat: January 10, 2025.
- Listing Date: January 13, 2025.
Reservation Details:
- Qualified Institutional Buyers (QIBs): 50% of the offer.
- Non-Institutional Investors (NIIs): 15% of the offer.
- Retail Individual Investors (RIIs): 35% of the offer.
Objectives of the IPO:
- Capital Expenditure: Funding the purchase of machinery and equipment to enhance production capabilities.
- Debt Repayment: Repaying or prepaying certain outstanding borrowings to strengthen the balance sheet.
- Strategic Investments: Investing in subsidiaries and potential acquisitions to drive inorganic growth.
- General Corporate Purposes: Addressing other corporate needs as they arise.
Financial Highlights:
- Revenue Growth: The company reported a 10% year-on-year increase in revenues, reaching ₹549.68 crore in the financial year 2023-24.
- Profitability: Net profits rose by 12% to ₹60.01 crore during the same period.
Investment Considerations:
- Market Position: As one of the top five specialized engineering equipment manufacturers for the pharmaceutical and chemical sectors in India, the company holds a strong market position.
- Growth Potential: With plans to expand manufacturing capabilities and invest in strategic acquisitions, the company is poised for significant growth.
- Risks: Investors should consider market competition, economic factors affecting industrial demand, and the inherent volatility of SME stocks.
How to Apply:
- Eligibility: Ensure you have an active demat and trading account.
- Application Process: Apply through the ASBA (Application Supported by Blocked Amount) process via your bank or trading platform.
- Lot Size: Applications must be made in multiples of 107 shares.
- Monitor Allotment: Keep track of the allotment status and ensure sufficient funds are available for the application.
Grey Market Premium (GMP):
As of January 4, 2025, the grey market premium for Standard Glass Lining Technology Limited’s IPO stood at ₹88 per share. With the upper price band at ₹140, shares are expected to list at ₹228, indicating a premium of approximately 62.86%. citeturn0search0
Conclusion:
Standard Glass Lining Technology Limited’s IPO presents an opportunity to invest in a leading manufacturer within the industrial equipment sector. With a solid financial track record and clear objectives for growth, the company offers a compelling proposition for potential investors. However, it’s essential to conduct thorough research and consider your investment goals before participating.
Disclaimer: This blog is for informational purposes only and should not be construed as financial advice. Investors are advised to consult with a certified financial advisor before making any investment decisions.