Standard Glass Lining Technology files DRHP for IPO with SEBI

Telangana-based Standard Glass Lining Technology Ltd, has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Standard Glass Lining Technology offers comprehensive solutions that involve design, engineering, production, assembly, installation, and commissioning, as well as developing standard operating procedures for pharmaceutical and chemical firms on a turnkey basis.

The initial public offering (IPO), which has a face value of ₹10 per share, consists of a fresh ₹250 crore issue as well as an offer by founders and other selling shareholders to sell up to 18.44 million equity shares.

The amount of equity shares up for sale is as follows: up to 5.20 million by M/s S2 Engineering Services; up to 4.90 million by Kandula Ramakrishna; up to 4.13 million by Kandula Krishna Veni; up to 7.65 lakh by Nageswara Rao Kandula; up to 5.04 lakh by M/s Standard Holdings; up to 5 lakh by Katragadda Venkata Ramani; up to 3.50 lakh by Venkata Siva Prasad Katragadda; up to 4.50 lakh by Venkata Sandeep Gopineedi; up to 3.50 lakh by Mahitha Katragadda; and up to 3.50 lakh by Katragadda Harini.

The proceeds of its new issue, up to ₹10 crore, will go toward funding their company's capital expenditure needs for the acquisition of machinery and equipment; ₹130 crore will go toward the repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings that the company has obtained; and ₹130 crore will go toward investing in its fully owned Material Subsidiary, S2 Engineering Industry Private Ltd, for the purpose of repaying or prepaying, in full or in part, all or a portion of certain outstanding borrowings.

₹20 crore will be used for financing inorganic growth through strategic investments and/or acquisitions, and ₹30 crore will be invested in its fully owned Material Subsidiary, S2 Engineering Industry Private Ltd, to meet its capital expenditure requirements for the purchase of machinery and equipment. The remaining ₹30 crore will be used for general corporate purposes.

Based on revenue in Fiscal 2024, the DRHP lists the firm as one of India's top three producers of specialist engineering equipment composed of nickel alloy, stainless steel, and glass-lined. For the same time period, it is also among India's top three providers of pipes and fittings lined with polytetrafluoroethylene (PTFE). In terms of revenue growth over the last three fiscal years, it has outpaced other companies in its industry.

Revenue from operations at Standard Glass Lining Technologies increased by 9.26% from ₹497.59 crore in fiscal 2023 to ₹543.67 crore in fiscal 2024. This increase was mostly attributable to higher overall product sales, higher product sale prices, higher service and comprehensive maintenance contract sales, and higher profit after taxes, which rose from ₹53.42 crore in fiscal 2023 to ₹60.01 crore in fiscal 2024.

The registrar of the offer is KFin Technologies Limited, while the book-running lead managers are IIFL Securities Limited and Motilal Oswal Investment Advisors Limited. It is suggested that the equity shares be listed on the NSE and BSE.

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