Overall, the IPO received robust demand with subscription of nearly 35 times at the end of Day 2. The demand was driven by non-institutional investors, whose category was subscribed 78 times, followed by retail investors at 32.8 times.
The proceeds from its fresh issue will be utilized for funding of capital expenditure requirements of the company towards the purchase of machinery and equipment, repayment of debt, investment in its wholly owned material subsidiary S2 Engineering Industry, funding inorganic growth through strategic investments and general corporate purposes.
Check Standard Glass Lining IPO price band
The company has fixed a price band of Rs 133-140 per share, where investors can bid for 107 shares in one lot and in multiples thereafter.
GMP of Standard Glass Lining IPO
Currently, Standard Glass Lining GMP is robust at Rs 96, which indicates a premium of 69% over the issue price.Also Read: Will they surprise the bears? 5 IT sector stocks with upside potential up to 39%
Standard Glass Lining IPO: Should you subscribe or not?
Analysts advised investors to subscribe to the issue as the growth outlook is robust with expected revenue between 20-25% in the medium term with geographical and product expansion.
The company is valued at FY24 P/E 47.8x based on the upper price band on the post-issue capital.
“While comparing with its close peers, the issue is fairly valued with a superior margin profile. We recommend subscribing to the issue for long-term investment horizon,” said SBI Capital Securities.
About Standard Glass Lining IPO
Standard Glass Lining is one of the top five specialised engineering equipment manufacturers for pharmaceutical and chemical sectors in India, in terms of revenue in FY24, with in-house capabilities across the entire value chain.
Its capabilities include design, engineering, manufacturing, assembly, installation and commissioning solutions as well as establishing standard operating procedures for pharmaceutical and chemical manufacturers on a turnkey basis.
The Glass-Lined Equipment (GLE) industry is poised for significant growth, driven by multiple factors. GLE protects the contained media from exposure to water, other chemicals, alkalis, and corrosion, providing a desirable environment for storing the media. GLE is resistant to contamination and capable of operating in a variety of environments.
In FY24, the company’s revenue from operations rose 9% YoY to Rs 544 crore, while profit after tax increased 13% to Rs 60 crore. For the six month ended September 2024, revenues stood at Rs 307 crore and profit was at Rs 36 crore.
IIFL Capital Services, and Motilal Oswal Investment Advisors are the book-running lead managers, and KFin Technologies is the registrar of the issue.
When is the allotment and listing date of Standard Glass Lining
The allotment for the Standard Glass Lining IPO is expected to be finalised on January 9 and the listing of shares will be on January 13.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
