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Unlisted shares of Standard Glass Lining Ltd are currently trading at Rs 228 apiece in the grey market, which is a 62.86 per cent premium over the upper IPO price of Rs 140. It indicates a robust listing gain for investors on January 13.
Most brokerage firms have given a ‘subscribe’ rating to the Standard Glass Lining IPO for the long term.
Standard Glass Lining IPO: The initial public offer (IPO) of Standard Glass Lining Ltd has been closed at 5 pm on Wednesday, January 8. It was opened on January 6. The price band of the Rs 410-crore IPO has been fixed at Rs 133 to 140 apiece. Till 5:00 pm on the final day of bidding on Wednesday, the IPO got a 185.48 times subscription receiving bids for 3,80,27,56,032 shares against 2,05,02,558 shares on offer.
The quota for retail investors got subscribed by 65.71 times. The non-institutional investors (NII) portion received a 275.21 times subscription. The QIB category has received a 327.76 times subscription.
The IPO was subscribed by 13.67 times on Day 1 on Monday and 35.54 times on Day 2 on Tuesday.
The IPO allotment will likely take place on January 9, while the listing is scheduled to take place on January 13.
Standard Glass Lining IPO GMP Today
According to market observers, unlisted shares of Standard Glass Lining Ltd are currently trading at Rs 228 apiece in the grey market, which is a 62.86 per cent premium over the upper IPO price of Rs 140. It indicates a robust listing gain for investors on January 13.
Standard Glass Lining IPO: Should You Apply?
Most brokerage firms have given a ‘subscribe’ rating to the IPO for the long term.
Anand Rathi Research in its IPO note said Standard Glass Lining is specialised engineering equipment manufacturers for pharma and chemical sectors in India with products across entire value chain with customized and innovative product offering across the entire pharmaceutical and chemical manufacturing value chain and strategically located manufacturing facilities with advanced technological capabilities.
“At the upper price band, the company is valuing at P/E of 43.01 times, with an EV/Ebitda of 30.08 times and market cap of Rs 2,792.8 crore post issue of equity shares and return on net worth of 20.74 times. We believe that the IPO is fairly priced and recommend a ‘subscribe for long term’ rating to the IPO,” it added.
Geojit Financial Services in its IPO note also recommended to ‘subscribe for long term’. “Standard Glass’ valuation appears fairly priced compared to peers. The growing demand for glass-lined equipment in pharma and chemicals offers significant growth potential. Its healthy margins, consistent revenue growth, robust growth outlook, a diverse product portfolio with a focus on customisation, and inorganic growth plans support a ‘subscribe for long term rating,” it said.
Granting a ‘subscribe for long-term’ rating to the IPO, SBI Securities said the growth outlook for Standard Glass is robust as it is likely to grow its revenue between 20-25 per cent in the medium term with geographical and product expansion. The company is targeting 20 per cent of revenue from export by 2026 versus present 0.5 per cent.
“While comparing with its close peers, the issue is fairly valued with superior margin profile,” it said.
Standard Glass Lining IPO: More Details
The Rs 410.05-crore Standard Glass Lining IPO is a combination of fresh issuance of equity shares worth Rs 210 crore and an offer for sale (OFS) of up to 1.43 crore shares by promoters and other selling shareholders, according to the red herring prospectus (RHP).
S2 Engineering Services, Kandula Ramakrishna, Kandula Krishna Veni, Nageswara Rao Kandula, Standard Holdings, Katragadda Venkata Ramani, and Venkata Siva Prasad Katragadda are among shareholders selling shares through the OFS route.
Proceeds from the fresh issue to the extent of Rs 130 crore will be used by the company for debt repayment and Rs 30 crore for investment in a wholly-owned subsidiary S2 Engineering Industry.
Funds worth Rs 20 crore will also be utilised by the company towards inorganic growth through strategic investments or acquisitions, Rs 10 crore for the purchase of machinery and equipment and a portion will also be used for general corporate purposes.
Standard Glass Lining Technology has mobilised Rs 123 crore from anchor investors ahead of its IPO.
Standard Glass Lining Technology offers comprehensive solutions that encompass design, engineering, manufacturing, assembly, installation, and commissioning and establishing standard operating procedures for pharmaceutical and chemical manufacturers on a turnkey basis.
Some of its pharma clients include Aurobindo Pharma, Cadila Pharmaceutical, Granules India Ltd, Macleods Pharmaceuticals, Piramal Pharma, and Suven Pharmaceuticals.
IIFL Capital Services Ltd (formerly known as IIFL Securities Ltd) and Motilal Oswal Investment Advisors Ltd are the book-running lead managers, while KFin Technologies is the registrar for the issue.
The shares will be listed on the BSE and the National Stock Exchange (NSE).
