Standard Glass Lining IPO is launching its Initial Public Offering (IPO) from January 6 to January 8, 2025. The IPO comprises a fresh issue of shares worth ₹210 crores and an offer for sale of up to 1,42,89,367 equity shares, totaling approximately ₹410.05 crores.
Key Details of the Standard Glass Lining IPO:
- Price Band: ₹133 to ₹140 per share.
- Lot Size: The minimum application is for 107 shares, amounting to ₹14,980 at the upper price band. Retail investors can apply for up to 13 lots, totaling 1,391 shares or ₹1,94,740.
- Allocation: 50% of the shares are reserved for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII).
Important Dates:
- IPO Open Date: January 6, 2025
- IPO Close Date: January 8, 2025
- Basis of Allotment: January 9, 2025
- Initiation of Refunds: January 10, 2025
- Credit of Shares to Demat Accounts: January 10, 2025
- Listing Date: January 13, 2025
Standard Glass Lining IPO Overview:
Established in 2012, Standard Glass Lining Technology Limited is among India’s top five specialized engineering equipment manufacturers for the pharmaceutical and chemical sectors. The company offers a comprehensive range of products, including reaction systems, storage, separation and drying systems, and plant engineering services.
Financial Highlights (FY2024):
- Revenue: ₹549.68 crores, up from ₹500.08 crores in FY2023.
Standard Glass Lining IPO Review
Standard Glass Lining Technology Limited is set to launch its Initial Public Offering (IPO) from January 6 to January 8, 2025, with a price band of ₹133 to ₹140 per share.
Financial Performance:
- Revenue Growth: The company reported a revenue of ₹549.68 crores in FY2024, up from ₹500.08 crores in FY2023, indicating a growth rate of approximately 9.3%.
- Profit After Tax (PAT): PAT increased from ₹53.42 crores in FY2023 to ₹60.01 crores in FY2024, reflecting stable profitability.
- Earnings Per Share (EPS): The diluted EPS rose from ₹3.49 in March 2023 to ₹3.52 by March 2024, indicating higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW decreased from 47.56% in FY2023 to 20.74% in FY2024, which may be a point of concern for potential investors.
Standard Glass Lining IPO Strengths:
- Established Market Position: The company is a preferred partner for glass-lined equipment in India’s pharmaceutical and chemical sectors.
- Comprehensive Product Portfolio: Offers a wide range of products catering to various industrial needs.
- Strategic Location: Operates through eight manufacturing facilities in Hyderabad, Telangana, a major hub for the pharmaceutical industry.
Standard Glass Lining IPO Risks:
- Sector Dependence: The company’s performance is closely tied to the pharmaceutical and chemical sectors; any downturns in these industries could adversely affect its business.
- Negative Cash Flows: The company has experienced negative cash flows from operating activities in the past, which could impact its financial stability.
- Equity Dilution: Significant equity growth reflects retained earnings and potential capital infusion, which may lead to equity dilution and affect returns.
Valuation:
The company’s Price-to-Earnings (P/E) ratio is not explicitly provided, making it challenging to compare directly with peers. However, competitors like GMM Pfaudler Ltd and HLE Glascoat Ltd have P/E ratios of 30.64 and 56.54, respectively.
Grey Market Premium (GMP):
As of January 3, 2025, the GMP for Standard Glass Lining’s IPO is reported to be around ₹83, indicating a premium of over 59% above the upper price band.
Conclusion:
Standard Glass Lining Technology Limited presents a mix of growth potential and financial stability, with a strong market position and comprehensive product offerings. However, potential investors should consider the company’s sector dependence, past negative cash flows, and declining RoNW. The attractive GMP suggests positive market sentiment, but investors should conduct thorough due diligence and consider their risk tolerance before making investment decisions.
Standard Glass Lining Technology Limited Returns
Here’s a table summarizing potential returns for Standard Glass Lining Technology Limited based on different scenarios:
| Scenario | Expected Price | Potential Return (% Change) | Explanation |
| IPO Price (Upper Band) | ₹140 | — | The issue price at which the shares will be allotted. |
| Grey Market Premium (GMP) | ₹223 (₹140 + ₹83) | ~59% | Indicates strong demand in the grey market before listing. |
| Listing Day Target | ₹200–₹220 | ~43%–57% | Based on typical IPO trends with similar GMP levels. |
| Short-Term (1 Month) | ₹250 | ~79% | Driven by post-IPO momentum, favorable sentiment, and initial performance. |
| Medium-Term (1 Year) | ₹300–₹350 | ~114%–150% | Assumes steady growth, robust sector demand, and effective use of IPO proceeds. |
| Long-Term (3 Years) | ₹400–₹500 | ~186%–257% | Reflects consistent revenue and profit growth, expanding market presence, and favorable industry trends. |
Key Assumptions for Returns
- Short-Term: Driven by positive grey market sentiment and initial investor enthusiasm.
- Medium-Term: Assumes steady financial performance and the company meeting its growth objectives.
- Long-Term: Based on sector growth, operational efficiency, and continued investor confidence.
Standard Glass Lining Technology Limited Company Growth
Here’s a summary of Standard Glass Lining Technology Limited’s growth based on financial performance and key metrics, presented in a table:
| Key Metric | FY2023 | FY2024 | Growth (%) | Explanation |
| Revenue | ₹500.08 crores | ₹549.68 crores | +9.3% | Steady revenue growth, indicating robust demand and expansion in operations. |
| Profit After Tax (PAT) | ₹53.42 crores | ₹60.01 crores | +12.4% | Healthy increase in profitability, reflecting improved operational efficiency. |
| Earnings Per Share (EPS) | ₹3.49 | ₹3.52 | +0.9% | A marginal increase in EPS, showing stable growth in shareholder value. |
| Return on Net Worth (RoNW) | 47.56% | 20.74% | -56.4% | Significant decline in RoNW, indicating a reduction in the company’s return on equity. |
| Total Debt | ₹72.50 crores | ₹61.45 crores | -15.2% | Significant decline in RoNW, indicating a reduction in the company’s return on equity. |
| Cash Flow from Operations | Negative | Positive | — | Improved operating cash flow, an important factor in the company’s financial health. |
Growth Outlook
- Revenue Growth: The company is on a solid growth trajectory, benefiting from a rising demand for engineering solutions in the pharmaceutical and chemical sectors.
- Profitability: The increase in PAT signals that the company is moving in the right direction, though the decline in RoNW needs to be addressed for more efficient use of equity.
- Debt Reduction: The decrease in debt provides room for future investments without worrying about high interest burdens.
- Cash Flow: Improved operating cash flow reflects better business fundamentals, potentially leading to higher investments in infrastructure, R&D, and capacity expansion.
Conclusion:
The company is showing steady growth in revenue and profitability, though investors should monitor the decline in RoNW and the challenges of equity dilution. The management’s ability to address these issues while maintaining strong cash flows and expanding market share will be key to sustaining this growth.
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