Standard Glass Lining IPO: Public Issue Subscribed 25x On Day 2, GMP Hints Premium Listing; Key Dates?

The Standard Glass Lining Technology Ltd IPO has garnered attention as it enters its second day of bidding today, January 7, 2025. This marks the first major mainboard IPO of the year. The IPO opened on January 6 and will close on January 8, 2025. The company has fixed a price band of Rs 133 to Rs 140 per share for the IPO.

Ahead of the IPO opening, Standard Glass Lining Technology managed to secure Rs 123 crore from anchor investors. This sets the stage for a successful subscription period. The company is looking to raise Rs 410.05 crore through the offering, with Rs 210 crore coming from the fresh issue of equity shares and the remaining Rs 200 crore being raised through an offer for sale (OFS) by promoters and other selling stakeholders.

The funds raised through the fresh issue will be utilized for critical purposes, including Rs 130 crore for debt repayment and Rs 30 crore to be invested in its wholly-owned subsidiary, S2 Engineering Industry. The IPO funds are also expected to support capital expenditures, including the purchase of new machinery, as well as funding potential acquisitions for inorganic growth.

Subscription Status

As of the second day of the subscription period, the Standard Glass Lining IPO has seen a strong response. As of 1:20 pm, the IPO has been subscribed 24.74 times in total. The retail category is especially hot, having been subscribed 25.51 times. The Non-Institutional Investor (NII) category has seen strong demand as well, with a subscription of 50.31 times, while Qualified Institutional Buyers (QIBs) have shown steady interest, with a subscription rate of 3.42 times.

Grey Market Premium (GMP)

In addition to the strong subscription figures, the grey market has been abuzz with optimism regarding the Standard Glass Lining IPO. As of Tuesday, the Grey Market Premium (GMP) for the IPO stood at Rs 93 per share. This indicates that should the IPO price of Rs 140 be finalized, Standard Glass Lining shares could list at Rs 233, marking a 66% gain from the issue price.

Key Dates

Investors have until 5:00 pm on January 8 to submit their bids, with the final allotment of shares expected to take place on Thursday, January 9, 2025. Refunds will be initiated on January 10, and shares will be credited to demat accounts on the same day. The listing date for Standard Glass Lining shares is scheduled for Monday, January 13, 2025.

IPO Subscription Dates: January 6 - January 8, 2025
Price Band: Rs 133 to Rs 140 per share
Issue Size: Rs 410.05 crore
Lot Size: Minimum 100 shares
Basis of Allotment: January 9, 2025
Listing Date: January 13, 2025
Registrar: Link Intime India Private Limited
Lead Manager: Anand Rathi Advisors Limited

Objectives of the IPO

The capital raised from the IPO will be utilized for several key purposes, with a focus on strengthening the company's financial position and supporting its expansion plans. Key objectives include:
Debt Repayment: Rs 130 crore will be used to repay outstanding borrowings.
Investment in Subsidiary: Rs 30 crore will be allocated to support the capital expenditure requirements of S2 Engineering Industry.
Capital Expenditure: Funds will be used to purchase new machinery and equipment to expand manufacturing capacity.
Strategic Growth: Part of the funds will be directed towards strategic investments and acquisitions to support inorganic growth.
General Corporate Purposes: The remaining funds will be used for corporate operations and other business-related needs.

Company Overview

Standard Glass Lining Technology Ltd has built a reputation as one of the leading specialized engineering equipment manufacturers in India. According to an F&S Report, the company ranks among the top five suppliers of specialized engineering solutions for the pharmaceutical and chemical sectors in terms of revenue.

The company provides a comprehensive range of services, including design, engineering, manufacturing, assembly, installation, and commissioning of turnkey solutions. Standard Glass Lining specializes in core equipment for pharmaceutical and chemical manufacturing, including reaction systems, storage, separation, drying systems, plant Engineering and services (including ancillary parts).

Additionally, Standard Glass Lining is a dominant player in manufacturing glass-lined, stainless steel, and nickel alloy-based specialized engineering equipment. It is also one of the top three suppliers of PTFE-lined pipelines and fittings in India.