The excitement is building as Standard Glass Lining Technology Ltd. gears up to launch its Initial Public Offering (IPO) in early January 2025. As the first mainboard IPO of the year, investors are closely watching the proceedings to gauge potential returns. The company has already raised ₹123.02 crore from anchor investors, setting the stage for the IPO, which will open on January 6 and close on January 8.
In this article, we’ll break down what you need to know about the Standard Glass Lining IPO, from its price band to the grey market premium (GMP) and what’s behind the buzz.
What’s in Store for Investors in the Standard Glass Lining IPO?
The Standard Glass Lining IPO is a significant event for the Indian stock market. Not only does it mark the start of the IPO season in 2025, but it also brings to the table a company with a strong foothold in the pharmaceutical and chemical sectors. The IPO has garnered significant attention from both institutional investors and the grey market, with many excited about the prospects.
The Anchor Investors Backing the IPO
Before the official launch, Standard Glass Lining secured ₹123.02 crore from a group of anchor investors. Some well-known foreign and domestic institutions have shown their confidence in the company. Notable participants include:
- Amansa Holdings Private Ltd
- Clarus Capital I
- ICICI Prudential MF
- Kotak Mahindra Trustee Co Ltd A/C Kotak Manufacture In India Fund
- Tata MF
- Motilal Oswal MF
- Massachusetts Institute of Technology (MIT)
- ITI Large Cap Fund
The presence of such prestigious investors is a strong signal that the market expects Standard Glass Lining to perform well. Anchor investors often act as a benchmark for the IPO’s potential success.
Grey Market Premium (GMP) – A Sneak Peek Into Market Sentiment
The grey market premium (GMP) is a vital indicator for investors, often providing insight into how the stock might perform once it hits the exchanges. As of now, the GMP for Standard Glass Lining shares stands at ₹88. This translates to a 63% premium over the issue price. While GMP is not a foolproof indicator, it does show that there’s positive sentiment surrounding the IPO. A GMP of this size typically suggests that investors expect the shares to list at a much higher price than the issue price.
IPO Details: Price Band and Offer Structure
The Standard Glass Lining IPO offers a price band of ₹133-140 per equity share for a public issue worth ₹410.05 crore. This is a mix of a fresh issue and an offer for sale (OFS). Specifically:
- Fresh Issue: ₹210 crore
- Offer for Sale (OFS): 1.42 crore equity shares
Investors can bid for a minimum of 107 equity shares, with additional bids in multiples of 107 shares. The IPO is divided into different categories for investors:
- 50% of the offer will be allocated to qualified institutional buyers (QIBs)
- 15% for non-institutional investors (NIIs)
- 35% for retail individual investors (RIIs)
This allocation strategy is design to ensure broad participation from various investor segments, which helps in maintaining the balance of demand.
How the Company Plans to Use the Funds
The funds raised from the fresh issue will use for several purposes. Here’s a breakdown:
- ₹130 crore will be use to pay down debt.
- ₹30 crore will be invested in the company’s wholly-owned subsidiary, S2 Engineering Industry.
- ₹20 crore will go towards strategic investments or acquisitions, driving inorganic growth.
- ₹10 crore will be spent on machinery and equipment purchases.
- The remaining funds will be utilize for general corporate purposes.
This shows that Standard Glass Lining is committed to strengthening its balance sheet and expanding its business operations.
The Strong Market Position of Standard Glass Lining
Standard Glass Lining offers a comprehensive range of services that cater primarily to pharmaceutical and chemical manufacturers. The company’s expertise spans design, engineering, manufacturing, assembly, installation, and commissioning. Moreover, they specialize in establishing standard operating procedures (SOPs) for their clients, ensuring high-quality standards are maintained.
The company has managed to build a strong client base, with some of its notable customers including:
- Aurobindo Pharma
- Cadila Pharmaceuticals
- Granules India Ltd
- Macleods Pharmaceuticals
- Piramal Pharma
- Suven Pharmaceuticals
These big names in the pharmaceutical industry show that Standard Glass Lining is trusted by some of the most significant players in the sector, which should reassure potential investors about the company’s growth prospects.
Understanding the Offer for Sale (OFS) and Shareholders Involved
As part of the IPO, several existing shareholders will be selling shares via the Offer for Sale (OFS) route. The key shareholders selling their stakes include:
- S2 Engineering Services
- Kandula Ramakrishna
- Kandula Krishna Veni
- Nageswara Rao Kandula
- Standard Holdings
- Katragadda Venkata Ramani
- Venkata Siva Prasad Katragadda
Initially, the company had plann to offer 1.84 crore shares through the OFS route, but this has reduce to 1.42 crore equity shares. This reduction may have done to make the offer more attractive to investors.
Important Dates for the Standard Glass Lining IPO
Here are the key dates you need to remember for the Standard Glass Lining IPO:
- IPO Opens: January 6, 2025
- IPO Closes: January 8, 2025
- Allotment Date: January 9, 2025
- Listing Date: January 13, 2025 (tentative)
Make sure to mark these dates on your calendar if you’re planning to participate in the IPO.
Read More: Jasprit Bumrah Sudden Exit Raises Concerns
Final Thoughts
The Standard Glass Lining IPO has garnered significant attention from both anchor investors and the grey market, which suggests there’s positive sentiment surrounding the offering. The GMP indicates that investors are optimistic about the stock’s listing, with many expecting it to list at a premium price.
Additionally, the company’s strong track record in the pharmaceutical and chemical sectors, coupled with a solid client base, makes it an appealing choice for long-term investors. However, like any investment, there are risks, and potential investors should carefully assess their risk appetite before subscribing.
With a diversified usage of funds and a strong market position, Standard Glass Lining has set the stage for a successful IPO launch. If you’re looking for a promising investment opportunity, this IPO might just be worth considering.
