Standard Glass Lining Technology Limited, a leading manufacturer of engineering equipment for the pharmaceutical and chemical sectors, is launching its IPO worth ₹410.05 crores. The offering, running from January 6 to January 8, 2025, consists of a fresh issue of 1.50 crore shares worth ₹210 crores and an offer for sale of 1.43 crore shares valued at ₹200.05 crores, providing investors an opportunity to participate in India's growing pharmaceutical infrastructure sector.
The company has set the price band at ₹133-140 per share with a lot size of 107 shares, making the minimum investment ₹14,980 for retail investors. Following the share allotment on January 9, 2025, the company plans to list on both BSE and NSE on January 13, 2025. For investors interested in the pharmaceutical equipment manufacturing space, this IPO presents an opportunity to invest in a company positioned for market expansion.
Standard Glass Lining Technology Limited IPO is a fundraise worth ₹410.05 crores comprising fresh issue of 1.50 crore shares and offer for sale of 1.43 crore shares. The IPO will be available for subscription from January 6, 2025, to January 8, 2025, providing an opportunity for investors looking to gain a stake in the engineering equipment manufacturing segment.
| Standard Glass Lining Technology IPO date | January 6, 2025 - January 8, 2025 |
| Price band | ₹133 to ₹140 per share |
| Face value | ₹10 per share |
| Lot size | 107 shares |
| Issue type | Book-built issue IPO |
| Fresh issue | 1,50,00,000 shares amounting to ₹210 crores |
| Offer for Sale (OFS) | 1,42,89,367 shares amounting to ₹200.05 crores |
| Total issue size | 2,92,89,367 shares amounting to ₹410.05 crores |
| Listing at | BSE, NSE |
| Share holding post issue | 19,94,91,662 |
| Share holding pre issue | 18,44,91,662 |
The Standard Glass Lining Technology Limited IPO opens for subscription on January 6, 2025, and closes on January 8, 2025, with allotment slated for January 9, 2024.
| IPO open date | January 6, 2025 (Monday) |
| IPO close date | January 8, 2025 (Wednesday) |
| Basis of allotment | January 9, 2025 (Thursday) |
| Initiation of refunds | January 10, 2025 (Friday) |
| Credit of shares to demat account | January 10, 2025 (Friday) |
| Listing date on exchanges | January 13, 2025 (Monday) |
| Cut-off time for UPI mandate confirmation | 5 PM on January 8, 2025 (Wednesday) |
Standard Glass Lining Technology Limited, established in 2012, is a comprehensive manufacturer of engineering equipment for India's pharmaceutical and chemical sectors, offering turnkey solutions from design to installation. Operating through eight manufacturing units in Hyderabad, the company produces specialized equipment using glass-lined materials, stainless steel, and nickel alloy across three main product categories: Reaction Systems, Storage, Separation and Drying Systems, and Plant Engineering and Services. Their in-house capabilities span the entire production process, enabling them to provide complete solutions including standard operating procedures for their clients.
The company maintains a strong national presence with sales offices in key industrial locations including Vadodara, Ankleshwar, Mumbai, and Vishakhapatnam, supported by sales team members across major cities like Delhi, Bengaluru, Chennai, and Vijayawada. Their impressive client roster includes prominent pharmaceutical companies such as Aurobindo Pharma, Cadila Pharmaceutical, Laurus Labs, Natco Pharma, and Piramal Pharma. As of September 2024, the company operates with a workforce of 460 full-time employees and 731 contract laborers, demonstrating significant operational scale.
The company plans to utilize the net proceeds from the IPO for five strategic purposes: funding its own capital expenditure for machinery and equipment purchases, repaying or prepaying outstanding borrowings for both the company and its wholly owned subsidiary S2 Engineering Industry Private Limited, investing in S2 Engineering's capital expenditure for machinery and equipment, supporting inorganic growth through strategic investments and acquisitions, and addressing general corporate purposes.
The Standard Glass Lining Technology Limited IPO showcases a healthy market capitalization of ₹2,792.88 crores. Key performance indicators, as on March 31, 2024, reflect the company's financial health, with a Return on Equity (RoE) of 20.74%, Return on Capital Employed (RoCE) of 25.49%, and Debt-to-Equity ratio of 0.32.
The Return on Net Worth (RoNW) stands at 20.74%, while the Price-to-Book Value (P/BV) is seen at 5.70. The PAT Margin is 10.92. On an annual basis, the company's Profit After Tax (PAT) grew by 12% while the revenue increased by 10% in the financial year ending on March 31, 2024. A comparison of earnings per share (EPS) reveals a pre-IPO EPS of ₹3.25 while it is ₹3.64 post-IPO. The Price to earnings ratio stands at 43.04 pre-IPO and will be 38.5 post-IPO.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 312.10 | 549.68 | 500.08 | 241.50 |
| Assets | 756.52 | 665.38 | 347.79 | 298.11 |
| Profit After Tax | 36.27 | 60.01 | 53.42 | 25.15 |
| Net Worth | 447.80 | 409.92 | 156.67 | 69.91 |
| Reserves & Surplus | 261.58 | 389.18 | 139.94 | 53.66 |
| Total Borrowing | 173.80 | 129.32 | 81.96 | 69.81 |
Amount in ₹ crores
Standard Glass Lining Technology stands as one of India's top five specialized engineering equipment manufacturers for the pharmaceutical and chemical sectors, with comprehensive in-house capabilities spanning design, engineering, manufacturing, and installation. Their state-of-the-art manufacturing infrastructure includes eight facilities in Hyderabad capable of producing 300-350 equipment pieces monthly, offering over 65 designs. The company has built long-term relationships with prominent clients like Aurobindo Pharma and Cadila Pharmaceuticals, demonstrating its market credibility. Their expertise in manufacturing glass-lined, stainless steel, and nickel alloy-based equipment, having supplied over 11,000 products in the last decade, is further enhanced by strategic collaborations with GL Hakko and Asahi.
The company's robust market position is strengthened by its status as India's exclusive manufacturer of glass-lined shell and tube heat exchangers, and its ability to produce stainless steel glass-lined reactors up to 10KL capacity. With 460 full-time employees and 731 contract laborers, they maintain strong operational capabilities. The company is well-positioned to benefit from the growing Indian chemical industry.
Standard Glass Lining Technology faces several operational challenges, primarily stemming from its geographic concentration in Telangana, which exposes it to regional risks including natural disasters and political changes. The company's heavy dependence on the pharmaceutical and chemical sectors, which account for over 88.20% of revenue, makes it vulnerable to industry-specific downturns. Additionally, their reliance on a limited supplier base (top 10 suppliers accounting for 52.61% of raw materials) and lack of long-term contracts with both customers and suppliers creates significant supply chain and business continuity risks.
The company's financial position shows some concerning indicators, including negative cash flow from operations (₹193.39 million in 2024) and substantial working capital requirements. Their workforce management presents another challenge, with a 12.87% attrition rate in 2024 highlighting their dependency on skilled labor. The company also faces risks from potential under-utilization of production capacity and carries significant debt obligations, with variable interest rates that could impact financial performance. The absence of long-term contracts with major customers and high competition in the market from established players further adds to their operational vulnerabilities.
At a pivotal moment in its growth journey, Standard Glass Lining Technology Limited is opening its doors to public investment through its IPO. As a specialized engineering equipment manufacturer for the pharmaceutical and chemical sectors, the company brings to the table a robust foundation. Before making your investment decision, consider evaluating the company’s fundamentals alongside its expansion plans in India's growing chemical industry.
However, a balanced assessment should weigh the company's impressive capabilities against its challenges: geographic concentration in Telangana, heavy sector dependence with 88.20% revenue from pharmaceuticals and chemicals, and recent negative operating cash flows. While the company's position as India's exclusive manufacturer of certain specialized equipment suggests strong market potential, investors looking to participate in this growth story should carefully analyze how these factors align with their investment strategy and risk appetite. The window to become part of this engineering equipment manufacturer's next chapter opens soon – take time to review the prospectus and make an informed decision.
What is the Standard Glass Lining Technology IPO?
The Standard Glass Lining Technology Limited IPO is a main-board offering consisting of a fresh issue of 1.5 crore equity shares and an offer for sale of 1.43 crore shares with a face value of ₹10 per share, aiming to raise a total of ₹410.05 crores. The share price is set between ₹133 and ₹140, with a minimum order quantity of 107 shares. This IPO will be open for subscription from January 6, 2025, to January 8, 2025. Kfin Technologies Limited is the registrar while IIFL Securities Limited, Motilal Oswal Investment Advisors Limited are the book-running lead managers.
When will the Standard Glass Lining Technology IPO open?
The Standard Glass Lining Limited Technology IPO will open for subscription on January 6, 2025, and will close on January 8, 2025.
When is the Standard Glass Lining Technology IPO listing date?
The tentative listing date for the Standard Glass Lining Technology Limited IPO is Monday, January 13, 2025.
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