Standard Glass Lining files draft papers with Sebi to launch IPO

Hyderabad based Standard Glass Lining Technology has filed its draft red herring prospectus (DRHP) with the capital markets regulator Securities Exchange Board of India (Sebi) to raise Rs 600 crore through an initial public offer (IPO).
 

According to the company's DRHP, the public issue comprises a fresh issue of up to Rs 250 crore an offer-for-sale (OFS) of up to 1,84,44,000 equity shares by its promoters and existing shareholders. According to the sources, the company may raise about Rs 600 crore via its primary stake sale.
 

The net proceeds from the issue shall be utilized towards capital expenditure, repayment/prepayment of certain borrowings availed by the company, funding inorganic growth, and for general corporate purposes. Proceeds from the offer-for-sale shall go to the selling shareholders of the company.
 

Promoters S2 Engineering, Kandula Ramakrishna, Kandula Krishna Veni, Nageswar Rao Kandula, Katragadda Mohan Rao, Katragadda Sivaprasad,  Kudaravalli Punna Rao will participate in the OFS along with other shareholders including Venkata Sandeep Gopineedi, Mahitha Katragadda nd Katragadda Harini.
 

The company, in consultation with the lead managers of the issue, may consider a pre-IPO placement of up to Rs 50 crore. If the pre-IPO placement is undertaken, the fresh issue size will be trimmed said the company in its DRHP with the regulator.
 

Standard Glass Lining manufactures specialized engineering equipment for pharmaceutical and chemical sectors in India. The company posted total revenues of Rs 543.67 crore with a profit of Rs 60.01 crore for the financial year ended on March 31, 2024.
 

The company has reserved 50 per cent of the shares for qualified institutional bidders (QIBs), while non-institutional investors will have 15 per cent of shares allocated for them. Retail investors will get a portion of 35 per cent in this issue.
 

IIFL Securities and Motilal Oswal Investment Advisors are the book-running lead managers for the issue, while KFin Technologies has been appointed as the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.