The initial public offering (IPO) of Standard Glass Lining Technology continued to attract a strong response from the investors during the third and final day of the bidding process. The issue was overall subscribed more than 13.6 times on day one and ended day two with more than 35 times bidding.
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 1,78,39,24,544 equity shares, or 85.64 times, compared to the 2,08,29,567 equity shares offered for the subscription by 1.35 pm on Wednesday, January 08, 2025. The three-day bidding, which kicked off on Monday, January 06, shall conclude today.
The allocation for non-institutional investors (NIIs) was subscribed 190.09 times, while the portion reserved for retail investors saw a subscription of 51.17 times. However, the quota set aside for qualified institutional bidders (QIBs) was subscribed 66.64 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 seen some correcting amid the rising volatility, despite the strong bidding for the issue. Last heard, the company was commanding a premium of Rs 88-90 per share in the unofficial market, suggesting a listing pop of over 62-63 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.
The growth of Standard Glass is primarily driven by the exceptional corrosion resistance and durability of glass-lined equipment, making it a preferred choice in industries such as pharmaceuticals and chemicals in India. The GLE industry in India looks promising with continuous R&D efforts leading to the creation of advanced glass coatings with enhanced properties, said Master Capital.
Standard Glass is one of the leading specialised engineering equipment manufacturers plans to expand and improve existing product portfolio and enter into additional end-user industries. It intends to expand manufacturing capacities for existing products to cater the growing demand from existing customers and to meet requirements of new customers, it said with a 'subscribe for long term' tag.
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 has experienced rapid growth, becoming the fastest-growing company in its industry over the past three fiscal years. It has demonstrated strong financial performance with an average EPS of Rs 3.29 and a RoNW of 35.37 per cent. The P/E ratio stands at 39.77 times, while it has achieved a 50.45 per cent CAGR in revenue in last two fiscals, said Adroit Financial Services.
"The Indian glass-lined equipment market is projected to grow significantly, prompting SGLT to expand its manufacturing capacity and strengthen its market presence to meet rising demand. Hence, we recommend our clients to 'subscribe' to the issue," it said.
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.