Standard Glass Lining IPO: 10 Key Insights Before You Invest
Standard Glass Lining Technology Limited, a specialized manufacturer of engineering equipment for the pharmaceutical and chemical sectors, is set to launch its ₹410.05 crore Initial Public Offering (IPO) from 6th January to 8th January 2025. With its innovative product portfolio and a strong track record of growth, this IPO presents an intriguing opportunity for investors.
Here are the 10 key things you should know before investing in the Standard Glass Lining Technology Limited IPO:
What makes Standard Glass Lining Technology Limited a good opportunity?
Standard Glass Lining Technology Limited specializes in creating advanced engineering equipment, offering turnkey solutions for pharmaceutical and chemical manufacturers.
- Products: Reaction Systems, Storage, Separation and Drying Systems, and Plant Engineering Services.
- Clients: Esteemed organizations such as Aurobindo Pharma Limited and CCL Food and Beverages Private Limited.
- Strength: Robust sales network and eight manufacturing facilities strategically located in Hyderabad.
The company’s ability to innovate and cater to industry-specific needs has helped it establish a strong market presence, making it an appealing investment prospect.
What are the IPO dates, price band, and issue size?
Key details of the IPO are as follows:
- IPO Dates: January 6th – January 8th, 2025
- Listing Date: January 13th, 2025
- Price Band: ₹133 – ₹140 per share
- Total Issue Size: ₹410.05 Cr
- Face Value: ₹10 per share
- Lot Size: 107 shares
- Promoters: Nageswara Rao Kandula, Kandula Krishna Veni, and others
What is the minimum investment for the IPO?
The minimum investment required to apply for the Standard Glass Lining Technology Limited IPO is ₹14,231, based on the lot size of 107 shares at the lower price band of ₹133 per share. However, to increase your chances of allotment, we recommend applying at the upper price band, which would require ₹14,980 (107 shares at ₹140 per share).
What does the company do?
Founded in 2012, Standard Glass Lining Technology Limited provides engineering solutions tailored for pharmaceutical and chemical industries.
- Operations: Eight manufacturing units in Hyderabad and sales offices across India.
- Products: Glass-lined materials, stainless steel, and nickel alloy-based equipment.
- Team: A strong workforce of 460 employees and 731 contract laborers as of September 2024.
The company’s solutions simplify complex production processes, enhancing operational efficiency for its clients.
What is the objective of the IPO?
The primary objectives of the IPO include:
- Funding capital expenditure for machinery and equipment.
- Repaying or prepaying certain borrowings.
- Investing in its subsidiary, S2 Engineering Industry Private Limited, for growth and equipment purchase.
- Supporting inorganic growth through strategic investments or acquisitions.
- Meeting general corporate expenses.
How much is reserved for retail and other investors?
The allocation for different investor categories is:
- Qualified Institutional Buyers (QIBs): Up to 50%
- Non-Institutional Investors (NIIs): At least 15%
- Retail Investors: At least 35%
What are the key strengths and risks?
Strengths:
- Expertise in engineering solutions for the pharmaceutical and chemical industries.
- Strategically located facilities with advanced technology.
- Long-term relationships with marquee clients.
- Consistent profitability and robust financial performance.
Risks:
- Dependence on facilities in Telangana, exposing it to regional risks.
- Challenges in retaining skilled labor.
- Reliance on a few key customers and suppliers for raw materials.
- Vulnerability to utility disruptions like electricity and water shortages.
What is the financial performance of Standard Glass Lining Technology Limited?
The company has demonstrated consistent growth (in ₹ Cr):
| Period Ended | Assets | Revenue | Profit After Tax |
| 31-Mar-2024 | ₹665.38 | ₹549.68 | ₹60.01 |
| 31-Mar-2023 | ₹347.79 | ₹500.08 | ₹53.42 |
| 31-Mar-2022 | ₹298.11 | ₹241.50 | ₹25.15 |
What is the allotment and listing timeline?
- Basis of Allotment: January 9, 2025
- Refund Initiation: January 10, 2025
- Shares Credited to Demat Accounts: January 10, 2025
- Listing Date: January 13, 2025
Should you invest in Standard Glass Lining Technology Limited IPO?
Standard Glass Lining Technology Limited presents a strong case for investment with its niche focus, long-term client relationships, and growth trajectory. However, potential investors should carefully weigh the risks, including dependence on a few clients and suppliers and the regional concentration of manufacturing facilities.
Evaluate your financial goals and risk tolerance before investing in this IPO.
