The initial public offering (IPO) of Standard Glass Lining Technology continued to attract a strong response from the investors during the second day of the bidding process. The issue, which kicked off on Monday, January 06, was overall subscribed more than 13.6 times on day one.
The Standard Glass Lining Technology is selling its shares in the price band of Rs 133-140 apiece. Investors can apply for a minimum of 107 shares and its multiples thereafter. It is looking to raise Rs 410.05 crore via IPO, which includes a fresh share sale of 1.5 crore shares worth Rs 210 crore and an offer-for-sale (OFS) of up to 1,42,89,367 equity shares.
According to the data, the investors made bids for 61,72,68,341 equity shares, or 29.63 times, compared to the 2,08,29,567 equity shares offered for the subscription by 2.55 pm on Tuesday, January 07, 2025. The three-day bidding for the issue shall conclude on Wednesday, January 08.
The allocation for retail investors was subscribed 29.18 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 62.89 times. However, the quota set aside for qualified institutional bidders (QIBs) was subscribed 4.55 times as of the same time.
Incorporated in September 2012, Hyderabad-based Standard Glass Lining Technology is a manufacturer of engineering equipment for the pharmaceutical and chemical sectors in India. The IPO of Standard Glass includes a fresh share sale of Rs 210 crore and offer-for-sale (OFS) of 1,42,89,367 equity shares by its existing shareholders and promoter entities.
The grey market premium (GMP) of Standard Glass has been holding firm following the strong bidding for the issue. Last heard, the company was commanding a premium of Rs 90-95 per share in the unofficial market, suggesting a listing pop of over 65-67 per cent for the investors. The GMP stood around Rs 95-100 on the first day of the bidding.
Brokerages are mostly positive on the issue suggesting investors to subscribe to it citing its strong financial performance, experience management, specialized sector and solid financial track record. However, dependence on select customers and concentration in a single region are major concerns for the issue.
Standard Glass is one of the top five specialized engineering equipment manufacturers in India. With a customized product and advanced manufacturing facilities the company has a solid growth potential, said Arihant Capital Markets. "The issue is valued at an EV/Ebitda multiple of 28.44 times based on FY24 Ebitda and P/E ratio of 38.50 times, it said with a subscribe rating," it said.
Standard Glass Lining is a leading player in engineering equipment manufacturing. With its market position, technical expertise, and reliable customer base, the company offers good potential for investors, said Nirmal Bang Securities. "Considering its high growth potential, efficient operations, and reasonable pricing, we recommend a 'subscribe' rating for this IPO," it said.
Ahead of its IPO, Standard Glass raised Rs 123 crore from nine institutional investors via anchor book by allocating 87,86,809 equity shares at Rs 140 apiece. Standard Glass reported a net profit of Rs 36.27 crore with a revenue of Rs 312.1 crore for the six months ended on September 30, 2024.
Standard Glass Lining Technology has reserved 50 per cent equity shares for qualified institutional bidders (QIBs), while 15 per cent of the offer has been allocated towards the non-institutional investors (NIIs). Retail investors will get the remaining 35 per cent of the allocation in the IPO. It shall command a total market capitalization close to Rs 2,793 crore.
Standard Glass is one of the fastest growing companies in its industry operating through its 8 manufacturing facilities with advanced technological capabilities offering 65+ products across pharma and chemical industries with a customized and innovative product offering, said Reliance Securities.
"It has built long term relationships with marquee clients getting repeat large orders through its execution capabilities at competitive pricing. SGLT is expanding new products, increasing capacities, expanding sales team for domestic and exports with agency arrangements and growing organically through strategic acquisitions and alliances," it added with a 'subscribe' tag.
IIFL Securities and Motilal Oswal Investment Advisors are the book running lead managers of the Standard Glass Lining IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with January 13, Monday as the tentative date of listing.