Standard Glass Lining IPO: Public Issue Subscribed 84x On Final Day; GMP Hints Listing At 69% Premium; BUY?

The Standard Glass Lining Technology Ltd IPO, which opened for subscription on Monday, January 6, 2025, has garnered strong investor interest and is now in its final day of bidding today, January 8. With just one day remaining for investors to apply, the IPO has already been subscribed more than 84 times as of the third day of bidding.

IPO Subscription

As of 1:30 pm on January 8 (final day), the IPO had received bids for 174.69 crore equity shares, compared to the 2.08 crore shares on offer, according to BSE data. This translates to a subscription rate of 83.87 times. The Retail Investors segment has seen a subscription rate of 51.09 times. The Non-Institutional Investors (NII) category has been subscribed 190.09 times, while the Qualified Institutional Buyers (QIB) portion has been subscribed 60.71 times.

With such an enthusiastic response across all investor categories, the issue is on track to become one of the most subscribed IPOs in recent times. The IPO's price band is set between Rs 133 and Rs 140 per share.

Lot Size

The IPO has a lot size of 107 shares, with a minimum investment requirement for retail investors set at Rs 14,980. Retail investors can bid for up to 13 lots, with the total investment amounting to Rs 1,94,740.

Grey Market Premium (GMP)

One of the most encouraging indicators of the IPO's potential for a successful listing is the grey market premium (GMP). As of the third day of bidding, Standard Glass Lining's IPO shares are commanding a GMP of Rs 97 per share, translating to a 69% premium over the upper end of the issue price of Rs 140 per share. This means that the shares are currently being traded at Rs 236 per share in the grey market.

Given the strong GMP, the expected listing price for Standard Glass Lining shares could potentially be around Rs 236, offering investors a solid return right from the listing day.

IPO Objectives

The funds raised from the IPO will be used for various purposes to support Standard Glass Lining's growth plans. A substantial portion of the proceeds, approximately Rs 130 crore, will be allocated to repay the company's outstanding borrowings, helping to strengthen its balance sheet. Additionally, Rs 30 crore will be invested in the capital expenditure requirements of S2 Engineering Industry, a subsidiary of Standard Glass Lining.

The company also plans to use a portion of the funds to purchase new machinery and equipment, expanding its manufacturing capacity to meet growing demand. Strategic investments and acquisitions will be made to foster inorganic growth, while the remaining funds will be used for general corporate purposes.

Company Overview

Standard Glass Lining Technology Ltd has established itself as a leading player in the specialized engineering equipment manufacturing sector 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 industries in terms of revenue.

The company specializes in manufacturing core equipment for pharmaceutical and chemical manufacturing processes, including reaction systems, storage, separation, drying systems, and plant engineering services. It is particularly renowned for its glass-lined, stainless steel, and nickel alloy-based equipment.

In addition to its core products, Standard Glass Lining is one of the top three suppliers of PTFE-lined pipelines and fittings in India. With a comprehensive portfolio of services, including design, engineering, manufacturing, assembly, installation, and commissioning of turnkey solutions, Standard Glass Lining is well-positioned to capitalize on the growing demand for high-quality engineering equipment in the pharmaceutical and chemical sectors.

Key Dates

The Standard Glass Lining IPO will close at 5:00 pm on January 8, 2025, with the final allotment of shares scheduled for Thursday, January 9. Refunds will be initiated by January 10, and shares will be credited to demat accounts the same day. The listing of Standard Glass Lining shares is scheduled for Monday, January 13, 2025.