As an investor, deciding whether to apply for an IPO can often be challenging. If you are confused and worried about whether the Standard Glass Lining IPO should be applied for, do not worry. Here are 10 important key points and a detailed Standard Glass Lining IPO review that will help you make the decision.
Standard Glass Lining IPO Overview
- Financial Value: Standard Glass Lining reported an average three-year ROE and ROCE of around 41 and 37 percent, respectively, between FY22 and FY24.
- Financial Growth: Its revenue and profit after tax increased by 50% and 52% yearly, respectively, in FY 22–24.
- Market Value: The stock’s P/E and P/B ratios are approximately 48 and 4.3 times, respectively, at the upper price range of Rs 140.
- Brief of the company: Standard Glass Lining is one of the leading companies that provide comprehensive solutions for pharmaceutical and chemical manufacturers. Designing, engineering, manufacturing, assembling, installing, commissioning systems, and creating standard operating procedures are some of the services they offer to manufacturers.
Details of Standard Glass Lining IPO
| IPO Size | ₹410.05 crores |
| Offer-for-sale | 1,42,89,367 equity shares |
| Fresh issue | ₹210 crores |
| Price band | ₹133 to ₹140 |
| Subscription | Opens on January 6, 2025, and close date is on January 8, 2025 |
| Purpose of IPO | Fresh Issue and Offer for Sale |
1. Standard Glass Lining IPO dates
Standard Glass Lining IPO‘s opening date is January 6, 2025, and the closing date is January 8, 2025.
2. Size of the Standard Glass Lining IPO
The company Standard Glass Lining decided to raise around ₹410.05 crores via IPO. This IPO is a combination of a fresh issue of ₹210 crores and an offer for sale with up to 1,42,89,367 equity shares face value of ₹10 each.
3. IPO Lot Size and Application Details
Standard Glass Lining IPO price band is set at ₹133 to ₹140 per share. In this IPO a total of 107 shares were available in 1 lot size for the minimum Retail category and for the maximum retail category, 1391 shares in 13 lot sizes were available. For S-HNI Minimum category 1,498 shares were available in 14 lot sizes. While for the B-HNI Minimum category 7,169 shares were available in 67 lot sizes.
To invest in this IPO, each investor category has specific investment amounts:
- Retail Investors: Minimum investment of ₹14,980 and maximum investment of ₹1,94,740.
- Small HNI (S-HNI): Minimum investment of ₹2,09,720.
- Big HSI (S-HNI): A minimum investment of ₹10,03,660 is required.
4. Standard Glass Lining IPO listing Date
Standard Glass Lining is a Mainboard IPO whose shares will be listed on January 13, 2025, on the BSE (Bombay Stock Exchange) & NSE (National Stock Exchange).
5. Objectives of the Standard Glass Lining IPO
The main objective behind the company’s decision to raise funds is to utilize the funds to purchase machines and various equipment. Use funds for repayment of old debts of certain borrowings. Invest in the Wholly-owned Material Subsidiary. Spend the funds on inorganic growth through strategic investments and/or acquisitions and use the remaining amount for General corporate purposes.
6. About Standard Glass Lining
Standard Glass Lining Technology Limited is the leading company in engineering equipment manufacturing for the pharmaceutical and chemical industries. It was established in 2012 and is renowned as one of the top three firms for glass-lined, stainless steel, and high alloy. It is an outstanding company for providing in-house capabilities and core specified equipment and significant engineering equipment for manufacturing and 11,000 products have been supplied over ten years.
7. Company Financials
The company reported revenue of ₹549.68 crores in 2024 against ₹500.08 crores in 2023. The company reported a profit of ₹60.01 crores in 2024 against a Profit of ₹53.42 crores in 2023.
8. Promoters
Nageswara Rao Kandula, Kandula Krishna Veni, Kandula Ramakrishna, Venkata Mohana Rao Katragadda, Kudaravalli Punna Rao and M/s S2 Engineering Services are the promoters of the company.
9. Strengths and Weakness
Strengths:
- As of now, Standard Glass Lining is one of the top five companies engaged in engineering equipment manufacturers for the pharmaceutical and chemical sectors in India.
- The company provides personalized and innovative products that cover the whole pharmaceutical and chemical manufacturing process.
Weakness:
- The Company mainly generates good revenue due to its skilled labor, if it fails to hire or maintain the right labor can negatively affect its financial performance.
- Their manufacturing facilities mainly depend on a reliable supply of water and electricity, any problem like a shortage of water or electricity can heavily impact profits.
- The company mostly generates revenue from a few of their key customers, Failing or losing any of the key customers can significantly affect the business, revenue, and cash flow.
10. Lead managers and Registrar
Life Securities Ltd and Motilal Oswal Investment Advisors Limited are the lead managers of Standard Glass Lining while KFin Technologies Limited is the registrar of the company.
