The Standard Glasslined IPO is one of the most anticipated initial public offerings in January 2025. The company is a leading manufacturer of glass-lined equipment serving high-growth industries such as pharmaceuticals, specialty chemicals, and agrochemicals. This IPO offers investors an opportunity to participate in the growth story of a niche company in the engineering sector. This article provides a detailed review and analysis of. Standard glass lining IPO, We cover everything from the company’s background and financial situation to the pros and cons of investing.
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About Standard Glass Lining Technology Limited
Established in 1995, Standard Glass Laning Technology Limited specializes in manufacturing glass-lined reactors, storage tanks, heat exchangers and other corrosion-resistant equipment. These products are essential in industries that require high purity and chemical resistance, especially in pharmaceuticals and chemical processing.
The company operates a state-of-the-art manufacturing facility in Gujarat and is focused on quality, innovation and export expansion. The company’s customers include leading companies from India and abroad, making it a trusted supplier in global markets. The company aims to use the IPO funds to expand production capacity and strengthen its balance sheet.
Standard glass-lined IPO details
- IPO start date: January 6, 2025
- IPO deadline: January 8, 2025
- Price range: Stock ₹133 to ₹140 per share
- Face value: ₹10 per share
- Lot size: 107 shares and multiples thereof
- Issue size:
- Latest issue: ₹21 billion
- Offer price: ₹20 billion (14,289,367 shares)
- Listing exchange: BSE and NSE
The proceeds will be used to purchase machinery, expand production capacity and repay debt, indicating the company’s focus on business growth and financial stability.
financial performance
The company’s financials highlight its consistent growth and profitability. A summary of our key metrics for the year ending March 31, 2024 is as follows:
- Revenue: 549.68 million rupees
- Profit after tax (PAT): ₹60 billion
- Earnings per share (EPS): ₹3.52
- Return on Net Assets (RoNW): 20.74%
- Debt to equity ratio: 0.32
- EBITDA margin: 18.36%
- PAT margin: 10.92%
With a strong RoNW of 20.74% and low leverage, the company exhibits sound financial health and has long-term investment potential.
Valuation value and PER
At the upper price band of ₹140, the P/E ratio is approximately 39.77x based on EPS of ₹3.52. This is lower than the industry average P/E ratio of 55.24x, making the IPO attractively priced compared to its peers, including:
- GMM Powdler: P/E 30.6x
- HLE Glascoat Ltd: P/E 56.5x
- Thermax Co., Ltd.: PER 81.2x
The relatively low valuation provides investors with a margin of safety, especially considering the company’s growth potential.
Why invest in Standard Glass Lining IPO?
- Growing industry demand: The growing demand for glass-lined equipment in the pharmaceutical and chemical sectors offers significant growth potential.
- Strong financials: Healthy margins, consistent revenue growth, and strong RoNW reflect operational efficiency.
- Competitive rating: The IPO is attractively priced relative to its peers, offering potential upside.
- Export growth: The company has a growing international presence and is well positioned to take advantage of global market trends.
- Utilization of funds: Proceeds from the IPO will be used to expand production capacity and repay debt, driving long-term growth.
risk factors
- Fierce competition: The company operates in a competitive market with established players such as GMM Pfaudler and HLE Glascoat.
- Sector dependence: Revenues are heavily dependent on the pharmaceutical and chemical sectors, which are cyclical in nature.
- Operational challenges: Risks such as production delays, raw material price fluctuations, and supply chain issues may affect our results.
- Export risk: International trade policies and geopolitical tensions may affect the company’s export operations.
- Assessment risk: The valuation is attractive compared to peers, but the P/E ratio is high for a mid-sized company.
How to apply for a standard glass lining IPO
You can apply for Standard Glass Lining’s IPO using the following methods.
- ASBA (Applications supported by blocked amounts):
- Log in to your online banking account.
- Go to the IPO section and select “Standard Glass Lined IPO”.
- Enter your bid price and quantity.
- Please review your application and ensure you have sufficient funds in your account.
- UPI (Unified Payments Interface):
- Use a broker platform that supports UPI-based IPO applications.
- Link your UPI ID and authorize your payment obligations.
Also read: How can I invest in Pre-IPO stocks?
Should you invest in a standard glass-lined IPO?
Standard Glass Lined IPOs combine growth potential with financial stability. Its strong financial performance, competitive valuation, and strategic use of IPO proceeds make it an attractive investment for those with a moderate to high risk appetite.
However, investors should also consider the risks associated with market competition and sector dependence.
For long-term investors looking to diversify into niche engineering fields, this IPO could be a good addition to their portfolio. Conservative investors may want to wait and evaluate performance after listing.
