Standard Glass Lining IPO Oversubscribed: GMP, Price Band & Details
In a remarkable turn of events, the Standard Glass Lining IPO, a Rs 1,250 crore issue involving fresh equity of Rs 210 crore and an offer for sale of 1.42 crore shares, was oversubscribed within just an hour of opening for subscriptions. This exceptional response was largely fueled by robust participation from retail and non-institutional segments, with the overall subscription rate currently standing at 1.82 times.
Price Band and Subscription Details
The Standard Glass Lining IPO, which opened for subscriptions today, features a price band of Rs 133-140 per share and will remain open until January 8. Retail Individual Investors have shown a subscription rate of 2.46 times, while Non-Institutional Investors have displayed a keen interest with a subscription rate of 2.73 times. Prior to the commencement of the offering, the company successfully secured Rs 123 crore from anchor investors, setting a strong foundation for the IPO.
Grey Market Premium and Expert Recommendations
The current Grey Market Premium for Standard Glass Lining stands at an impressive Rs 93, indicating a substantial 69% premium above the issue price. Market analysts have recommended subscribing to this IPO, citing promising growth prospects with anticipated revenue growth of 20-25% in the medium term through geographical expansion and product diversification. Based on the upper price band, the company’s post-issue valuation reflects a FY24 P/E ratio of 47.8x, positioning it as a compelling investment opportunity.
Expert Perspective and Share Allocation
SBI Capital Securities has affirmed that the issue is fairly valued compared to its peers, highlighting the company’s superior margin profile. They recommend subscribing to the issue for a long-term investment horizon. The share allocation process for the Standard Glass Lining IPO will conclude on January 9, with trading of the company’s shares scheduled to commence on January 13.
About Standard Glass Lining
Standard Glass Lining is a leading player in India’s specialized engineering equipment sector for pharmaceutical and chemical industries, boasting comprehensive in-house production capabilities. With a focus on end-to-end solutions spanning design, engineering, manufacturing, installation, and commissioning services, the company is known for its turnkey projects that streamline operations for pharmaceutical and chemical producers.
The Glass-Lined Equipment (GLE) sector is poised for significant growth, driven by the ability of GLE to protect contents from water, chemicals, alkalis, and corrosion, ensuring optimal storage conditions. Standard Glass Lining reported a 9% year-over-year increase in operational revenue to Rs 544 crore in FY24, with profits after tax rising by 13% to Rs 60 crore. In the first six months ending September 2024, the company achieved revenues of Rs 307 crore and profits of Rs 36 crore, showcasing a strong financial performance.
With book-running lead managers IIFL Capital Services and Motilal Oswal Investment Advisors overseeing the IPO process and KFin Technologies serving as the registrar, Standard Glass Lining is poised for a successful debut on the stock market, attracting significant interest from investors seeking long-term growth opportunities.
