Standard Glass Lining files draft papers with Sebi to launch an IPO

The Indian IPO market has been witnessing a surge of activity in recent years, with numerous companies capitalising on investors' growing appetite for new and exciting investment opportunities. 

Amidst this crowded landscape of public issues, Standard Glass Lining Technology Limited, a specialised manufacturer of a wide range of engineering equipment, has taken a significant step towards going public by filing a Draft Red Herring Prospectus (DRHP) with the SEBI on July 24, 2024. The total worth of the Initial Public Offering (IPO) that the company is planning to go with is approximately Rs. 600 crore.

Here is everything you need to know about the upcoming Standard Glass IPO, including key information about the company. 

Standard Glass Lining Technology Limited: About the Company 

Incorporated in 2012, Standard Glass Lining Technology Limited is among India’s top five specialised engineering equipment manufacturers in terms of revenue as of FY2024. The company’s primary focus encompasses design, engineering, manufacturing, installation, assembly, and commissioning solutions for the chemical and pharmaceutical sectors. 

The company's product portfolio is diverse and is categorised into three main segments: 

• Reaction Systems, 
• Storage, Separation and Drying Systems
•  Plant, Engineering and Services (including ancillary parts)       

Notably, Standard Glass Lining Technology Limited ranks among India's top three manufacturers of glass-lined, stainless steel, and nickel alloy-based specialised engineering equipment. They are also one of the top three suppliers of polytetrafluoroethylene (PTFE)-lined pipelines and fittings in India.

Over the past decade alone, the company has supplied more than 11,000 products, catering to various sectors ranging from pharmaceuticals and chemicals to biotechnology and fertilisers. As of June 30, 2024, Standard Glass Lining Technology Limited’s customer base includes 30 of the about 80 pharmaceutical and chemical companies in the NSE 500 index.

Competitive Strengths

The Standard Glass company has several key competitive strengths that set it apart from its competition. Here is a quick overview of some of the strengths.

1. Market Leadership

Being one of the top five specialised engineering equipment manufacturers in India gives the company a major edge. The company’s ability to provide solutions across the entire value chain also works in its favour.  

2. Diverse and Customised Product Portfolio

Standard Glass Lining Technology Limited offers a comprehensive range of over 65 products and solutions. Additionally, the company can also customise products based on the unique process requirements of clients.

3. Strategic Manufacturing Facilities

With eight manufacturing facilities spread across more than 4 lakh sq. ft. in Hyderabad, Telangana—known as the "Pharma Hub" of India—the company is strategically positioned to serve its key markets efficiently.

4. Innovative Product Offerings

Standard Glass Lining Technology Limited has developed several unique products that address specific industry challenges. These include “STANGLASS” for antistatic action, No Stain Glass to prevent stain formation, and the patented ‘Smart Seal’ and ‘Clampless Manhole’ designs.

5. Strong Customer Relationships

The company has established long-term relationships with marquee clients across sectors. As of March 31, 2024, they have active relationships exceeding 3 years with 17 of their top 20 customers.

Key Financial Information 

Now that you are aware of the Standard Glass company, let us now look at a snapshot of its key financial information for the previous three financial years. 

Rs. in crore

Standard Glass Lining Technology Limited IPO: Key Details

Since Standard Glass has just filed its Draft Red Herring Prospectus with the SEBI, many key details of the public issue are still unknown. However, the company is expected to announce them in the forthcoming months. Here is what we know about the Standard Glass IPO as of now.

1. Subscription Date

The offer opening and closing dates have not yet been decided or notified by the company. This information is likely to be announced at the time of filing the final Red Herring Prospectus (RHP) of the company.  

2. Issue Size

The total issue size of the Standard Glass IPO is expected to be around Rs. 600 crore. The public issue, however, has two components: a fresh issue component and an offer for sale (OFS). 

Through the fresh issue of equity shares, the company plans to raise about Rs. 250 crore, which will be used to fulfil various objectives. Through the offer for sale (OFS), the promoters and existing shareholders of the company plan to offload 1,84,44,000 equity shares.      

3. Details of the Offer for Sale (OFS)

The table below outlines the details of the promoters and existing shareholders who plan to offload their stakes through the OFS part of the Standard Glass IPO. 

4. Pre-IPO Placement Offer

In addition to the IPO, Standard Glass Lining Technology Limited also has a pre-IPO placement offer, where it may attempt to sell up to Rs. 50 crore of its shares. If the pre-IPO placement is successful, the fresh issue component may be reduced to Rs. 200 crore to compensate.  

5. Pricing of the IPO

The company has yet to notify the pricing of the public issue. Since this is a book-built issue, the offer price, floor price, and cap price will be determined in consultation with the Book-Running Lead Managers (BRLMs) of the issue and will be notified at the time of filing the Red Herring Prospectus.  

6. Listing Exchanges

The Standard Glass IPO is proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). 

7. Reservation Portion

A maximum of 50% of the total issue size is reserved exclusively for Qualified Institutional Buyers (QIBs), around 15% for non-institutional buyers, and the remaining 35% of the issue is for retail investors.  

8. Objects of the IPO

Standard Glass Lining proposes to use the funds that it raises from the fresh issue of equity shares for the following objectives: 

• For meeting capital expenditure requirements in connection with the purchase of machinery and equipment. 
• For repayment and prepayment of certain loans and borrowings availed by the company and S2 Engineering Industry Private Limited, its wholly-owned subsidiary. 
• For investing in S2 Engineering Industry Private Limited, the company’s wholly-owned subsidiary.
• For inorganic growth in the form of strategic investments and acquisitions.
• For general corporate purposes.

Conclusion

The upcoming Standard Glass IPO presents investors with an interesting opportunity to invest in the specialised engineering equipment sector. If you are planning on investing in the company, remember to conduct thorough due diligence and consider your own risk tolerance and investment goals before making a concrete decision.

If you are finding it hard to keep track of public issues, head over to Motilal Oswal’s Research 360. The platform has an entire section dedicated to IPOs, where you can view all of the upcoming issues and their key details. Additionally, you also get a snapshot of how recently listed companies have performed.