Strong Listing: Standard Glass Lining Technology Makes Stellar Debut At 25% Premium From IPO Price

Standard Glass Lining Technology Limited delivered a strong performance on its stock market debut on Monday, January 13, 2025. The company's shares were listed at Rs 172 on the National Stock Exchange (NSE), reflecting a 22.8% premium to the issue price of Rs 140. On the Bombay Stock Exchange (BSE), the stock performed even better, debuting at Rs 176, marking a 25.71% rise from the issue price.

The company garnered strong interest during its initial public offering (IPO), which was open for subscription from January 6 to January 8, 2025.

IPO Subscription

Standard Glass Lining's Rs 410 crore IPO received an overwhelming response from all investor categories, closing with a staggering subscription of 185.48 times. The IPO attracted bids for 380.27 crore shares against an offer size of 2.05 crore shares. Retail Investors subscribed 65.71 times, Non-Institutional Investors (NII) subscribed 275.21 times, and Qualified Institutional Buyers (QIB) subscribed 327.76 times.

Details of the IPO

The Rs 410.05 crore IPO was a book-built issue comprising a fresh issue of 1.50 crore shares worth Rs 210 crore and an offer for sale of 1.43 crore shares valued at Rs 200.05 crore. The price band was set between Rs 133 and Rs 140 per equity share, and retail investors could apply for a minimum lot of 107 shares, requiring an investment of Rs 14,980. Ahead of the public offering, the company raised Rs 123 crore from anchor investors on January 3.

Utilization of IPO Proceeds

Standard Glass Lining has a clear strategy for utilizing the funds raised:
Capital Expenditure: A significant portion will be invested in acquiring machinery and equipment to improve operational efficiency.
Debt Repayment: The proceeds will be used to repay or prepay certain borrowings, including those of its wholly owned subsidiary, S2 Engineering Industry Private Limited.
Subsidiary Investment: The company plans to invest in S2 Engineering to support its capital expenditure needs, particularly for purchasing machinery.
Inorganic Growth: Funds will be directed toward strategic investments and acquisitions to expand the company's footprint.
General Corporate Purposes

About Standard Glass Lining Technology

Founded in September 2012, Standard Glass Lining Technology Limited specializes in manufacturing engineering equipment tailored for the pharmaceutical and chemical industries. The company boasts comprehensive in-house capabilities, managing every aspect of production, from design and engineering to assembly, installation, and the creation of standard operating procedures.

Its turnkey solutions cater to the specific needs of pharmaceutical and chemical manufacturers, ensuring seamless integration and efficiency.

Financial Performance

The company's financial performance underscores its strong market position. Between the fiscal years ending March 31, 2023, and March 31, 2024, Standard Glass Lining reported a 10% increase in revenue and a 12% rise in profit after tax (PAT).

Listing Day Highlights

The listing marks a major milestone for the company, reinforcing its credibility in the market. The BSE debut at Rs 176 and NSE debut at Rs 172 highlight the high investor demand for the company's shares.

IIFL Securities Ltd and Motilal Oswal Investment Advisors Limited acted as the book-running lead managers for the IPO, while Kfin Technologies Limited served as the registrar.