If you’re an investor seeking opportunities in the industrial equipment sector, the Standard Glass Lining Technology Limited (SGLTL) IPO might be worth exploring. This IPO opens a door to a company that has carved a niche in manufacturing glass-lined equipment for the chemical and pharmaceutical industries. In this review, we’ll uncover the details of the IPO, assess the company’s performance, and weigh its potential as an investment.
IPO Details
Here are the crucial details about the Standard Glass Lining Technology Limited IPO:
- IPO Opening Date: January 8, 2025
- IPO Closing Date: January 10, 2025
- Issue Price: ₹140-₹150 per share
- Issue Size: ₹250 crore
- Lot Size: 107 shares
- Minimum Investment: ₹14,980 (based on the upper price band)
- Listing Exchanges: BSE and NSE
- Expected Listing Date: January 13, 2025
Grey Market Premium (GMP) Analysis
The Grey Market Premium (GMP) for Standard Glass Lining Technology Limited’s IPO is currently trading in the range of ₹70–₹80 (61.43%) per share, indicating positive sentiment among investors.
This premium reflects the market’s confidence in the company’s growth potential, robust financial performance, and established presence in the chemical and pharmaceutical equipment sectors.
However, it’s essential to remember that GMP trends can fluctuate and may not always guarantee listing gains. Investors should consider GMP as one of many factors in their decision-making process.
Company Overview
Established in September 2012, Standard Glass Lining Technology Limited has built a solid reputation in manufacturing high-quality glass-lined equipment. These products are primarily used in the chemical, pharmaceutical, and allied industries. The company’s portfolio includes reactors, storage tanks, and columns, all designed to withstand harsh, corrosive environments while ensuring safety and durability.
The company’s commitment to innovation and stringent quality standards has helped it maintain a leading position in the market.
Financial Performance
Let’s take a closer look at the company’s financial journey over the past three years:
| Particulars | For the period ended September 30, 2024 | Year ended March 31, 2024 | Year ended March 31, 2023 | Year ended March 31, 2022 |
|---|---|---|---|---|
| Revenue from Operations (₹ lakh) | 3,071.95 | 5,436.69 | 4,975.88 | 2,401.87 |
| Profit After Tax (PAT) (₹ lakh) | 362.68 | 600.11 | 534.24 | 251.45 |
| Total Borrowings (₹ lakh) | 1,737.95 | 1,293.24 | 819.62 | 698.08 |
| Net Worth (₹ lakh) | 4,478.04 | 4,099.24 | 1,566.67 | 699.06 |
| Return on Capital Employed (%) | 10.81% | 25.49% | 43.43% | 42.03% |
The company’s revenue has grown steadily, with profitability improving year over year. Its reduced borrowings indicate better financial management, further strengthening its position in the market.
Standard Glass Lining Technology Limited Shareholding Pattern
| Particulars | Pre-issue | Post-issue |
| Promoter & Promoters Gr | 72.49% | 60.41% |
| Public | 22.51% | 39.59% |
| Total | 100% | 100% |
Industry Prospects
The demand for glass-lined equipment is set to rise as chemical and pharmaceutical companies expand their operations. Factors like increased industrial automation and stricter environmental regulations are driving growth in this sector. Standard Glass Lining Technology Limited is strategically positioned to benefit from these trends, thanks to its established market presence and broad product offerings.
Objectives of the IPO
The funds raised from this IPO will be used to:
- Expand the company’s manufacturing facilities to meet growing demand.
- Invest in research and development to introduce innovative products.
- Repay existing borrowings to strengthen the balance sheet.
- Cater to general corporate requirements.
Strengths
- Reputation and Experience: Over 12 years of industry experience.
- Strong Client Base: Trusted by major players in the chemical and pharmaceutical sectors.
- Financial Growth: Consistent performance with improving profitability.
- Future-Ready Strategy: Focused on innovation and expansion.
- Skilled Management: Led by an experienced leadership team.
Risks
- Sector Concentration: Heavy reliance on the chemical and pharmaceutical industries.
- Cost Volatility: Raw material price fluctuations could impact profitability.
- Economic Uncertainty: Economic downturns may affect demand.
- Competitive Pressure: Intense competition in both domestic and international markets.
Investment Considerations
Investors should evaluate SGLTL’s solid financials and growth potential against risks like market dependency and economic factors. The company’s focus on innovation and expanding its operations offers promising prospects for long-term investors interested in the industrial equipment space.
Key Highlights
- Focus on Sustainability: The company is adopting eco-friendly manufacturing practices.
- Growth-Oriented Strategy: Aggressive plans for capacity expansion and new product development.
- Robust Market Position: Strong reputation and relationships with top industry clients.
More Information about Standard Glass Lining Technology Ltd
FAQ’s
What does Standard Glass Lining Technology Limited do?
SGLTL manufactures glass-lined equipment for chemical, pharmaceutical, and allied industries.
What is the size of Standard Glass Lining Technology Limited IPO?
The IPO issue size is ₹250 crore.
What are the Standard Glass Lining Technology Limited company’s financial strengths?
The company has shown consistent growth in revenue and profit, coupled with reduced debt levels.
Where will the Standard Glass Lining Technology Limited IPO be listed?
It will be listed on both the BSE and NSE.
How will the Standard Glass Lining Technology Limited IPO proceeds be used?
Funds will be used for expansion, R&D, debt repayment, and general corporate purposes.
What are the risks of investing in Standard Glass Lining Technology Limited IPO?
Risks include dependency on specific industries, raw material cost volatility, and market competition.
What is the minimum investment for Standard Glass Lining Technology Limited IPO?
The minimum investment required is ₹14,980 at the upper price band.
How does Standard Glass Lining Technology Limited company stand out in the industry?
Its commitment to quality, innovation, and customer relationships sets it apart.
What is the listing date of Standard Glass Lining Technology Limited IPO?
Standard Glass Lining Technology Limited IPO is expected to be listed on January 13, 2025.
What makes Standard Glass Lining Technology Limited IPO an attractive investment?
Standard Glass Lining Technology Limited company’s strong financials, growth strategy, and established market presence make it a promising option for long-term investors.
Disclaimer: Investing in IPOs involves risks. Investors are advised to conduct their own research or consult financial advisors before making investment decisions.
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