| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 133 to ₹ 140 | 107 | 06th Jan, 2025 – 08th Jan, 2025 | ₹ 410.05 Cr |
About Standard Glass Lining Technology Ltd IPO
Standard Glass Lining Technology Ltd. is amongst India’s top five specialized engineering component manufacturers for the pharmaceutical & chemical sector in terms of FY24 revenue, with in-house capabilities across the entire value chain. The company’s capabilities include designing, engineering, manufacturing, assembly, installation and commissioning solutions and establishing standard operating procedures for pharmaceutical and chemical manufacturers on a turnkey basis. Its product portfolio comprises core engineering equipment categorized into (i) Reaction systems, (ii) Storage, separation & drying systems, and (iii) Plant, engineering and services (including other ancillary parts). The company is also one of India’s top three manufacturers of glass-lined, stainless steel, and nickel alloy-based specialized engineering equipment as well as the top three suppliers of polytetrafluoroethylene (PTFE) lined pipelines and fitting in terms of revenue in FY24 (Source: F&S Report). Over the past three fiscals, they have been the fastest-growing company in their industry, supplying over 11,000 products in the last decade. Their engineered solutions are utilized across various sectors, including pharmaceutical, chemical, food and beverage, biotechnology, and fertilizer industries. They have a diversified customer base, including end users operating in various sectors across pharmaceutical, chemicals, paint, biotechnology and food and beverages. The company’s marquee customer base includes 30 out of approximately 80 pharmaceutical and chemical companies in the NSE 500 index as of June 30, 2024. They operate through eight manufacturing facilities in Hyderabad, Telangana, covering over 400,000 sq. ft. Hyderabad, known as the Pharma Hub of India, accounted for 40% of India’s total bulk drug production in FY24.
Objective of the Standard Glass Lining Technology Ltd IPO
The net proceeds from the fresh issue will be used towards the following purposes:
- Repayment/Prepayment of certain outstanding borrowings;
- Investment in material subsidiary S2 Engineering Industry Pvt. Ltd. for funding capex requirements towards purchase of machinery and equipment;
- Funding inorganic growth through strategic investments and/or acquisitions;
- General corporate purposes.
Rationale To Standard Glass Lining Technology Ltd IPO
Market leader in the specialized engineering equipment segment with in-house capabilities
Standard Glass Lining Technology is among India’s top five specialized engineering component manufacturers for the pharmaceutical and chemical sectors. It is also among the top 3 glass-lined, stainless steel, and nickel alloy-based specialized engineering equipment manufacturers. The company possesses in-house capabilities across the value chain, including design, engineering, manufacturing, assembly, installation, and commissioning solutions, as well as establishing standard operating procedures for manufacturers on a turnkey basis. The company’s leading market position is attributed to several factors, such as a diverse product portfolio with a focus on customization, technical abilities and technically qualified employees, the promoters’ presence in the industry for over two decades, the high quality of products, the ability to deliver highly customized solutions in a timebound manner, and an extensive distribution network. Further, the company has leveraged its market position through strategic arrangements with HHV Pumps Private Limited to supply vacuum pumps and GL Hakko to supply to the glass lining division. These collaborations have increased competitive advantage, scalability, and broader customer reach across diverse segments bycross-selling to existing customers. The company has also entered into an exclusive partnership with GL Hakko to purchase glass-lined tubes, which will be used to manufacture and sell shell and heat tube exchangers under the GL Hakko name in India and abroad, except Japan. Primarily catering to end users in the pharmaceutical and chemical industries, the company foresees further growth due to its in-house capabilities to manufacture all core specialized engineering equipment required in these sectors, which will drive revenue growth in the future.
Long-term relationships with marquee clients to aid business performance
Standard Glass Lining Technology has established long-standing relationships with some of the marquee clientele in the pharmaceutical and chemical industries in a relatively short time. The company’s ability to cater to customized processes addressing customers’ requirements, technical know-how, and track record of timely fulfilment of customer orders has helped establish these long-standing relationships in each product category. As of September 2024, it has 347 clients, including marquee names like Aurobindo Pharma, CCL Foods & Beverages, Laurus Labs, Granules India, and Natco Pharma. The company has obtained repeat orders from over 80% of its top 20 customers in the FY22, FY23, FY24 and 1HFY25 periods. The company also constantly explores new technologies, materials, and manufacturing processes to improve products and offer customers cutting-edge solutions. Further, they monitor capacity utilization levels at manufacturing facilities to maintain optimum capacities, reducing customer delivery turnaround time. Additionally, the location of manufacturing facilities in and around Hyderabad, Telangana, provides proximity to the facilities of key clients, enabling regular interaction with them to understand their needs further and the operational performance of equipment or designs. Long-term relationships and ongoing active engagements with customers also allow for capital expenditure planning and enhance the ability to benefit from increasing economies of scale, which will improve operational performance and profitability.
Valuation of Standard Glass Lining Technology Ltd IPO
Standard Glass Lining Technology is one of the few companies in India offering end-to-end customized solutions in the specialized engineering equipment used in the pharmaceutical and chemical sectors. As of September 2024, the company’s comprehensive product portfolio consists of 65+ products & offerings across the pharma and chemical industries and is also developing 15 more products. The company can also manufacture 300-350 pieces of equipment per month across the product portfolio. The company is further looking to expand capacity and is venturing into the 150 MM thickness segment, providing a gateway to sectors like Oil & Gas, Edible oil, Heavy engineering, etc. The company’s revenue has grown at a compound annual growth rate (CAGR) of 7% during FY2022-24 period. The company intends to continue strengthening its existing product portfolio in line with its capabilities and further diversify into products with prospects for increased growth and profitability. The company is targeting 20% of revenue from exports by 2026 v/s present 0.5% contribution. The issue is valued at a P/E of 39.8x on the upper price band based on FY24 earnings. Compared to its peers, we believe that the issue is fairly valued with a superior margin profile. Therefore, we recommend a SUBSCRIBE rating for the issue.
What is the Standard Glass Lining Technology Ltd IPO?
Standard Glass Lining IPO is a book built issue of Rs 410.05 crores. The issue is a combination of fresh issue of 1.50 crore shares aggregating to Rs 210.00 crores and offer for sale of 1.43 crore shares aggregating to Rs 200.05 crores. Login to your account now.
How to apply for the Standard Glass Lining Technology Ltd IPO through StoxBox?
To apply for the Standard Glass Lining Technology Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Standard Glass Lining Technology Ltd IPO open?
Standard Glass Lining Technology Ltd IPO is opening on 06th January 2025. Apply Now
What is the lot size of the Standard Glass Lining Technology Ltd IPO?
The Lot Size of Standard Glass Lining Technology Ltd IPO is 107 equity shares . Login to your account now
When is the Standard Glass Lining Technology Ltd IPO allotment date?
The allotment Date for Standard Glass Lining Technology Ltd IPO is 09th January 2025. Login to your account now.
When is the Standard Glass Lining Technology Ltd IPO listing date?
The listing Date for Standard Glass Lining Technology Ltd IPO is 13th january 2025. Login to your account now
What is the minimum investment required for the Standard Glass Lining Technology Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,980. Login to your account now
What is the maximum investment allowed for the Standard Glass Lining Technology Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 194,740 . Login to your account now
What are the risks associated with investing in the Standard Glass Lining Technology Ltd IPO?
- The company depends on a limited number of suppliers for key raw materials due to customers’ precise requirements. The company is required to source raw materials from accredited suppliers, thereby limiting the ability to source raw materials at preferential rates. Any loss of suppliers or failure to procure raw materials cost-effectively may harm business, financial conditions and the result of operations.
- The company operates through eight manufacturing facilities, concentrated in Hyderabad. This concentration exposes the company to adverse economic or political conditions that may affect production in the region.
- The company’s arrangements with customers are generally based on purchase orders and do not include long-term contracts. Failure to retain customers cost-effectively or customer cancellations or reductions in orders may adversely impact business, financial conditions, and the result of operations.
When will the Standard Glass Lining Technology Ltd IPO shares be credited to my Demat account
The Standard Glass Lining Technology Ltd IPO be credited to the account on allotment date which is 10th January 2025. Login to your account now
Where can I find the Standard Glass Lining Technology Ltd IPO prospectus?
he prospectus of Standard Glass Lining Technology Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Standard Glass Lining Technology Ltd IPO?
| IPO Open Date | Monday, January 6, 2025 |
| IPO Close Date | Wednesday, January 8, 2025 |
| Basis of Allotment | Thursday, January 9, 2025 |
| Initiation of Refunds | Friday, January 10, 2025 |
| Credit of Shares to Demat | Friday, January 10, 2025 |
| Listing Date | Monday, January 13, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on January 8, 2025 |
