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PremiumStandard Glass Lining IPO Day 2 highlights: The initial public offering (IPO) of Standard Glass Lining Technology Ltd enters its second day of bidding today, January 7. Standard Glass Lining IPO is poised to become the first major mainboard IPO in 2025. The issue opened for subscription on Monday, January 6, and will close on Wednesday, January 8. The company announced that it has secured ₹123 crore from anchor investors in advance of its issue opening. Standard Glass Lining IPO price band has been fixed at ₹133 - ₹140 per share.
The ₹410.05 crore-worth Standard Glass Lining IPO consists of a fresh issuance of equity shares worth ₹210 crore and an offer for sale (OFS) of up to 1.43 crore shares by its promoters and other selling stakeholders. The company plans to use ₹130 crore from the fresh issue to repay debts and allocate ₹30 crore for investment in its wholly-owned subsidiary, S2 Engineering Industry.
Standard Glass Lining Technology provides a wide range of solutions that cover design, engineering, manufacturing, assembly, installation, commissioning, and the establishment of standard operating procedures for pharmaceutical and chemical producers on a turnkey basis.
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Standard Glass Lining IPO Live: As of January 9, the grey market premium (GMP) for the public issue of Standard Glass Lining stands at ₹96 per share.
With the upper price band at ₹140, the shares are expected to be listed at ₹236, a premium of 68.57%, according to data collected from Investorgain.com.
Grey market premium (GMP) is the investors' willingness to pay more for a public issue. The GMP rose ₹3 to its current level of ₹96 on January 7, compared to its earlier level of ₹93 on January 6.
The promoters of the company are Nageswara Rao Kandula, Kandula Krishna Veni, Kandula Ramakrishna, Kudaravalli Punna Rao, Venkata Mohana Rao Katragadda, and M/s S2 Engineering Services. As of the date of the Red Herring Prospectus, promoters held120,495,367 equity shares of face value ₹10 each, aggregating to 65.31% of the pre-issue, issued, subscribed, and paid-up equity share capital of the company.
The IPO of Standard Glass Lining was booked 34.85 times at the end of the second day of the bidding process on Tuesday. The QIB category witnessed 4.69 times bids, the NII category 78.17 times and the retail category 32.87 times.
Source: RHP
SGLT is one of the fastest-growing companies in its industry, operating through its 8 manufacturing facilities with advanced technological capabilities. The company offers 65+ products across the pharma and chemical industries, with a customized and innovative product offering. SGLT has built long-term relationships with marquee clients, securing repeat large orders through its execution capabilities at competitive pricing.
SGLT is expanding new products, increasing capacities, expanding its sales team for domestic and export markets with agency arrangements, and growing organically through strategic acquisitions and alliances. With strong financial metrics and large global markets projected to grow at 6-10%, SGLT is well-positioned for significant growth in the coming years. Hence, we recommend a "SUBSCRIBE" to the issue.
Key strengths:
Key strategies:
Source: RHP
The company's revenue grew from ₹240.2 crore in FY22 to ₹543.7 crore in FY24, reflecting a CAGR of 50.5%. Similarly, PAT increased from ₹25.1 crore to ₹60.0 crore, with a CAGR of 55%, supported by its strategic partnerships and inorganic acquisitions.
It has an average EBITDA margin of 17.2% and a PAT margin of 10.7%, with an RoE of 28.5% for the FY22-24 period, indicating strong financial stability. As of September 30, 2024, the company's net debt-to-equity ratio stood at 0.3x.
The Standard Glass Lining IPO has been subscribed 31.21 times in total. The issue was subscribed 31.04 times in the retail category, 4.5 times in the QIB category, and 67.22 times in the NII category.
The company is bringing the issue at a price band of ₹133-140 per share, at a P/E multiple of 36x on the post-issue annualized H1FY25 PAT basis.
The company is one of the top five specialized engineering equipment manufacturers for the pharmaceutical and chemical sectors in India, with products spanning the entire value chain. It has strategically located manufacturing facilities with advanced technological capabilities and long-term relationships with marquee clientele across various sectors, maintaining a consistent track record of profitable growth.
Considering all of the above, we recommend a "Subscribe" rating for the issue.
• Sambasiva Rao Gollapudi is the Non-Executive Chairman and Independent Director of the Company. He has been associated with the Company since May 29, 2024. He has professional experience in accounting, auditing and consultancy of over two decades prior to joining our Company.
• Nageswara Rao Kandula is the Managing Director of the Company. He has been associated with the Company since incorporation. He has
professional experience in glass lining industry of over 10 years.
• Kandula Krishna Veni is an Executive Director of the Company. She has been associated with the Company since incorporation.
• Venkata Mohan Rao Katragadda is an Executive Director of the Company. He has been associated with the Company since September 12,
2020.
• Kandula Ramakrishna is an Executive Director on the Board. He has been associated with the Company since October 1, 2021. He has professional experience in the field of engineering of over 14 years.
• Sudhakara Reddy Siddareddy is an Independent Director on the Board. He has been associated with the Company since June 4, 2022.
• Yasuyuki Ikeda is a Non-Executive Director on the Board. He has professional experience in glass lining industry of over 22 years.
• Radhika Nannapaneni is an Independent Director on the Board. She has been associated with the Company since May 29, 2024
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. Glass lining technology is extensively used in various industries for its corrosion resistance and durability. (Source: F&S Report) The market has grown at a CAGR of 8.6% during CY 2021 to CY 2023 and is expected to grow at a CAGR of 10.1% and generate US$3,40cr in revenue by CY 2028.
The Standard Glass Lining IPO has been subscribed 25.27 times in total. The issue was subscribed 26.35 times in the retail category, 3.38 times in the QIB category, and 51.96 times in the NII category.
Standard Glass Lining Technology Limited (SGL), established in 2012, specializes in the manufacture of engineering equipment for pharmaceutical and chemical industries. The company provides comprehensive turnkey solutions encompassing design, manufacturing, installation, and maintenance services, thereby offering an end-to-end service model for clients.
SGL boasts a robust order book valued at ₹450 crore, emphasizing automation and operational efficiency. The company aims for a 20% contribution from export revenues in the next fiscal year by leveraging proprietary technology from its Japanese partner AGI, known for high-margin products. SGL’s strategic diversification into maintenance services significantly enhances customer retention, achieving 100% repeat business due to a superior product lifespan of 15 years compared to competitors' 4-5 years.
The company is currently valued at a price-to-earnings (P/E) ratio of 39.77x, which is favourable compared to the industry average of 52.50x. SGL exhibits a strong return on equity (RoE) of 20.74%, surpassing the sector's average of 16.96%. Anticipated capacity expansion and export-driven growth are projected to further bolster the company’s financial ratios.
Given SGL’s market leadership, extensive client base, and strategic growth initiatives, We recommend to SUBSCRIBE to this issue for listing & long-term gains.
The company serves a diversified customer base that spans various sectors, including pharmaceuticals, chemicals, paint, biotechnology, and food and beverages. Its prestigious client list includes 30 out of approximately 80 pharmaceutical and chemical companies in the NSE 500 index as of June 30, 2024, according to the F&S Report.
Notable customers include Apitoria Pharma, Aurobindo Pharma, CCL Food and Beverages, Cohance Lifesciences, Cadila Pharmaceutical, Deccan Fine Chemicals (India), Laurus Labs, Granules India, Macleods Pharmaceuticals, MSN Laboratories, Natco Pharma, Honour Lab, Hetero Drugs, Hetero Labs, Hazelo Lab, Piramal Pharma, Sanvira Biosciences, Suven Pharmaceuticals, Tagros Chemicals India, Vamsi Labs, and Viyash Life Sciences.
Standard Glass Lining Technology is recognized as one of the top five specialized engineering equipment manufacturers for the pharmaceutical and chemical sectors in India, in terms of revenue for Fiscal 2024, according to an F&S Report. The company possesses in-house capabilities across the entire value chain, including designing, engineering, manufacturing, assembly, installation, and commissioning solutions. Additionally, it establishes standard operating procedures for pharmaceutical and chemical manufacturers on a turnkey basis.
The company’s portfolio consists of core equipment used in the manufacturing of pharmaceutical and chemical products, which can be categorized into three main areas: (i) Reaction Systems, (ii) Storage, Separation, and Drying Systems, and (iii) Plant Engineering and Services (including other ancillary parts). Furthermore, it ranks among India's top three manufacturers of glass-lined, stainless steel, and nickel alloy-based specialized engineering equipment, based on revenue in Fiscal 2024. The company is also one of the top three suppliers of polytetrafluoroethylene (PTFE)-lined pipelines and fittings in India, based on revenue for the same period.
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 and offerings across the pharma and chemical industries, and it is also developing 15 more products. The company can manufacture 300-350 pieces of equipment per month across the product portfolio.
It 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 the 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, compared to the current 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.
Standard Glass Lining IPO was subscribed 19.79 times in total so far. The issue was subscribed 21.7 times in the retail category, 1.82 times in the QIB category, and 39.28 times in the NII category.
The funding will be used for the following purposes:
1. Capital expenditure requirements of our company, specifically for the purchase of machinery and equipment.
2. or prepayment, in full or in part, of certain outstanding borrowings availed by our company, and investment in our wholly owned material subsidiary, S2 Engineering Industry Private Limited, for the repayment or prepayment, in full or in part, of certain outstanding borrowings availed by S2 Engineering Industry Private Limited from banks and financial institutions.
3. Investment in our wholly owned material subsidiary, S2 Engineering Industry Private Limited, to fund its capital expenditure requirements for the purchase of machinery and equipment.
4. Funding inorganic growth through strategic investments and/or acquisitions.
5. General corporate purposes.
Standard Glass Lining Technology Limited is one of the top five specialized engineering equipment manufacturers in India. With a customized product and advanced manufacturing facilities, the company has solid growth potential. At the upper band of INR 140, the issue is valued at an EV/EBITDA multiple of 28.44x based on FY24 EBITDA and a P/E ratio of 38.50x, based on an annualized FY25 EPS of INR 3.64. We assign a "Subscribe rating" for this issue.
M/s S2 Engineering Services, the promoter selling shareholder, is offering up to 5,204,000 equity shares
Kandula Ramakrishna, a promoter selling shareholder, is offering up to 2,870,651 equity shares
Kandula Krishna Veni, another promoter selling shareholder, is offering up to 2,401,716 equity shares
Nageswara Rao Kandula, also a promoter selling shareholder, is offering up to 765,000 equity shares
M/s Standard Holdings, a promoter group selling shareholder, is offering up to 504,000 equity shares
Katragadda Venkata Ramani, a promoter group selling shareholder, is offering up to 580,000 equity shares
Venkata Siva Prasad Katragadda, another promoter group selling shareholder, is offering up to 350,000 equity shares
Mahitha Katragadda, an other selling shareholder, is offering up to 350,000 equity shares
Katragadda Harini, another other selling shareholder, is offering up to 350,000 equity shares
Likitha Katragadda, also an other selling shareholder, is offering up to 350,000 equity shares
Standard Glass Lining IPO was subscribed 15.04 times so far. The retail segment was booked 16.5 times, the NII category 29.29 times and QIB quota 1.81 times.
The IPO opened on Monday, January 6, 2025, and closes on Wednesday, January 8, 2025. The basis of allotment will be determined on Thursday, January 9, 2025. Refunds will be initiated on Friday, January 10, 2025, and shares will be credited to demat accounts on the same day, Friday, January 10, 2025. The listing date for the IPO is set for Monday, January 13, 2025. The cut-off time for UPI mandate confirmation is 5 PM on January 8, 2025.
The GMP for Standard Glass Lining IPO was ₹93 apiece on Tuesday. At current GMP and issue price of ₹140, Standard Glass Lining shares could list at ₹233, up 66% over IPO price.
Standard Glass Lining IPO Live: Standard Glass Lining Technology Limited is one of the top five specialized engineering equipment manufacturer in India. With a customized product and advanced manufacturing facilities the company has a solid growth potential. At the upper band of INR 140, the issue is valued at an EV/EBITDA multiple of 28.44x based on FY24 EBITDA and P/E ratio of 38.50x, based on an annualized FY25 EPS of INR 3.64. We assign a “Subscribe rating" for this issue, said Arihant Capital.
Standard Glass Lining IPO Live: Standard Glass Lining IPO has been subscribed 13.32 times on the first day, as investors bid for 27,75,52,115 equity shares, compared to the 2,08,29,567 shares on offer. The Non-Institutional Investors (NII) portion led the bidding round with 25.43 times subscription, followed by the retail investor portion with 14.46 times booking. The Qualified Institutional Buyers (QIBs) portion was subscribed 1.82 times on the first day.
Standard Glass Lining IPO Live: Standard Glass Lining IPO enters its second day of bidding today. The public offer received strong response on the first day as it has been subscribed 13.32 times so far. Standard Glass Lining IPO opened for subscription on January 6 and will close on January 8.
Standard Glass Lining IPO Day 1 Live Updates: The public issue of Standard Glass Lining was subscribed 13.32 times on the first day, as investors subscribed for 27,75,52,115 equity shares, compared to the 2,08,29,567 shares on offer.
The NII portion led the bidding round, coming in at 25.43x, followed by the retail investor portion at 14.46x. The Qualified Institutional Buyers (QIBs) portion was subscribed 1.82x on the first day.
Standard Glass Lining IPO Day 1 Live Updates: The non-institutional investors (NIIs) have subscribed to the IPO 25.43x so far. The Retail investor portion is following the NII bids, at 14.46x the shares on offer.
The Qualified Institutional Buyers (QIBs) have subscribed to the IPO 1.82x so far. Overall IPO has been booked 13.32 times on the first day.
Standard Glass Lining IPO Day 1 Live Updates: The public issue has been subscribed 12.84x so far on the first day, as investors bid for 26,73,48,274 equity shares, compared to the 2,08,29,567 shares on offer.
“At the upper price band company is valuing at P/E of 43.01x, with an EV/EBITDA of 30.08x and market cap of ₹27,928 million post issue of equity shares and return on net worth of 20.74 per cent," said analysts at Anand Rathi in an IPO note recommending to “Subscribe-Long Term".
Standard Glass Lining IPO Day 1 Live Updates: As of January 6, 2:55 p.m., the grey market premium (GMP) for the public issue dropped to ₹96 per share.
With the upper price band limit of ₹140, the shares are expected to be listed at ₹236, a premium of 68.57%, according to data collected from Investorgain.com.
Grey market premium (GMP) is an indicator of investors' willingness to pay more for a public issue. The GMP dropped Re 1 to its current levels, compared to ₹97 on January 5.
The initial public offer of Standard Glass Lining IPO has been subscribed 11.86x on the first day of subscription today, at 16:18 IST, as per BSE data.
The initial share sale received bid for 24,70,38,925 shares against 2,08,29,567 shares on offer, according to BSE.
The portion for retail investors received 13.66x subscription while the quota for non-institutional investors got subscribed 20.57x. The qualified institutional buyers (QIBs) part is booked 1.81x.
With a view to increasing its share of export revenues and to capitalize on increasing demand from international markets, the company has agency arrangements for sale and marketing of its products in Bangladesh as well as agency and distribution agreement for sale, marketing and distribution of its products in Russia.
The global glass lined equipment represents a significant opportunity with the TAM being expected to increase from US$ 2.1 billion in CY 23 at a CAGR of 10.1% to US$ 3.4 billion in CY 28.
The company has enjoyed growth in its revenue from operations, EBITDA and profit after tax in the past three fiscal years. The company has been the fastest-growing company when compared to its peers during the past 3 completed Fiscals. The company’s revenue from operations on a consolidated basis grew 50.45% between FY 2022 to FY 2024.
The company’s growth has been aided by its inorganic acquisitions of business of M/s Stanpumps Engineering Industries, M/s S2 Engineering Services, M/s Higenic Flora Polymers, M/s Yashasve Glass Lining Industries and C.P.K Engineers Pvt. Ltd.
The initial public offer of Standard Glass Lining IPO has been subscribed 9.73x on the first day of subscription today, at 15:18 IST, as per BSE data.
The initial share sale received bid for 20,27,01,442 shares against 2,08,29,567 shares on offer, according to BSE.
The portion for retail investors received 12.17x subscription while the quota for non-institutional investors got subscribed 16.47x. The qualified institutional buyers (QIBs) part is booked 5%.
The company’s products cater to a range of end-use industries such as pharmaceuticals, agrochemicals, speciality and fine chemicals, active pharmaceutical ingredients, food and bulk chemicals. The company has significantly expanded and diversified its product portfolio in recent years, strategically focusing on glass lined reactors and receivers, stainless steel and nickel alloy equipment, filtration and drying equipment and heat exchangers used in the pharmaceutical, chemical and food industries.
The company has 8 manufacturing facilities spread across ~400,000 sq. ft.,strategically located in Hyderabad, Telangana. The company’s manufacturing capabilities are complemented by a sales, service and distribution network operating from 4 sales offices located in Vadodara, Gujarat, Ankleshwar, Gujarat, Mumbai, Maharashtra and Vishakhapatnam, Andhra Pradesh and sales team members in Jhagadia, Gujarat, Chennai, Tamil Nadu, New Delhi, Bengaluru, Karnataka and Vijayawada, Andhra Pradesh with pan-India reach.
The firm features a strong order portfolio valued at ₹450 crore, focusing on automation and improved operational efficiency. The organization aims to achieve a 20% share of its revenue from exports in the upcoming fiscal year by utilizing proprietary technology from its Japanese partner, AGI, renowned for its high-margin products. SGL’s strategic expansion into maintenance services greatly boosts customer loyalty, resulting in 100% repeat business, thanks to a product lifespan of 15 years,
The initial public offer of Standard Glass Lining IPO has been subscribed 7.06x on the first day of subscription today, at 13:09 IST, as per BSE data.
The initial share sale received bid for 14,70,96,003 shares against 2,08,29,567 shares on offer, according to BSE.
The portion for retail investors received 9.04x subscription while the quota for non-institutional investors got subscribed 11.50x. The qualified institutional buyers (QIBs) part is booked 1%.
Standard Glass Lining Technology is a Hyderabad-based engineering equipment manufacturer for the pharmaceutical (82% of FY24 revenue) and chemical sectors (13%). Established in 2012, SGLTL offers design, engineering, manufacturing, assembly, installation, and commissioning services. Its product portfolio includes reaction systems (57% of FY24 revenue), storage, separation & drying systems (30%), and plant engineering and services (13%). The company operates 8 manufacturing facilities in Telangana and serves 347 clients with over 65 products as of September 30, 2024.It had a ~ 17% market share in India's glass lined equipment market as of FY24.
The company is currently valued at a price-to-earnings (P/E) ratio of 39.77x, which is favourable compared to the industry average of 52.50x. SGL exhibits a strong return on equity (RoE) of 20.74%, surpassing the sector's average of 16.96%. Anticipated capacity expansion and export-driven growth are projected to further bolster the company’s financial ratios. Given SGL’s market leadership, extensive client base, and strategic growth initiatives, We recommend to SUBSCRIBE to this issue for listing & long-term gains.
The initial public offer of Standard Glass Lining IPO has been subscribed 5.27x on the first day of subscription today, at 12:00 IST, as per BSE data.
The initial share sale received bid for 10,97,23,685 shares against 2,08,29,567 shares on offer, according to BSE.
The portion for retail investors received 6.92x subscription while the quota for non-institutional investors got subscribed 8.18x. The qualified institutional buyers (QIBs) part is yet to be booked.
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.
The company's listed peers are GMM Pfaudler Ltd (with a P/E of 30.64), HLE Glascoat Ltd (with a P/E of 56.54), Thermax Ltd (with a P/E of 81.24), and Praj Industries (with a P/E of 52.54).
The initial public offer of Standard Glass Lining IPO has been subscribed 3.61x on the first day of subscription today, at 11:15 IST, as per BSE data.
The initial share sale received bid for 7,52,68,080 shares against 2,08,29,567 shares on offer, according to BSE.
The portion for retail investors received 4.96x subscription while the quota for non-institutional investors got subscribed 5.10x. The qualified institutional buyers (QIBs) part is yet to be booked.
