The Standard Glass Lining IPO is one of the most anticipated public offerings in January 2025. As a leading manufacturer of glass-lined equipment, the company caters to high-growth industries such as pharmaceuticals, specialty chemicals, and agrochemicals. This IPO provides investors an opportunity to participate in the growth story of a niche player in the engineering sector. In this article, we provide a detailed review and analysis of the Standard Glass Lining IPO, covering everything from the company’s background and financials to investment pros and cons.
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About Standard Glass Lining Technology Limited
Established in 1995, Standard Glass Lining Technology Limited specializes in manufacturing glass-lined reactors, storage tanks, heat exchangers, and other corrosion-resistant equipment. These products are essential for industries requiring high purity and chemical resistance, particularly in pharmaceutical and chemical processing.
The company operates a state-of-the-art manufacturing facility in Gujarat, with a focus on quality, innovation, and export growth. Its clientele includes leading companies in India and abroad, making it a trusted supplier in the global market. With its IPO proceeds, the company aims to expand its production capacity and strengthen its balance sheet.
Standard Glass Lining IPO Details
- IPO Opening Date: January 6, 2025
- IPO Closing Date: January 8, 2025
- Price Band: ₹133 to ₹140 per equity share
- Face Value: ₹10 per share
- Lot Size: 107 shares and multiples thereof
- Issue Size:
- Fresh Issue: ₹210 crore
- Offer for Sale: ₹200 crore (14,289,367 shares)
- Listing Exchange: BSE and NSE
The funds raised will be used for purchasing machinery, capacity expansion, and debt repayment, signaling a focus on operational growth and financial stability.
Financial Performance
The company’s financials highlight its consistent growth and profitability. Here’s a summary of key metrics for the fiscal year ending March 31, 2024:
- Revenue: ₹549.68 crore
- Profit After Tax (PAT): ₹60 crore
- Earnings Per Share (EPS): ₹3.52
- Return on Net Worth (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 demonstrates sound financial health, making it a potential long-term investment.
Valuation and P/E Ratio
At the upper price band of ₹140, the P/E ratio is approximately 39.77x, based on an EPS of ₹3.52. This is lower than the industry average P/E of 55.24x, making the IPO attractively priced compared to peers such as:
- GMM Pfaudler Ltd: P/E of 30.6x
- HLE Glascoat Ltd: P/E of 56.5x
- Thermax Ltd: P/E of 81.2x
The relatively lower valuation provides a margin of safety for investors, especially given the company’s growth potential.
Reasons to Invest in Standard Glass Lining IPO
- Rising Industry Demand: Growing demand for glass-lined equipment in the pharmaceutical and chemical sectors offers significant growth potential.
- Strong Financials: Healthy margins, consistent revenue growth, and a strong RoNW reflect operational efficiency.
- Competitive Valuation: The IPO is priced attractively compared to peers, offering potential upside.
- Export Growth: The company’s increasing international presence positions it to capitalize on global market trends.
- Utilization of Funds: Proceeds from the IPO will be used for capacity expansion and debt repayment, driving long-term growth.
Risk Factors
- High Competition: The company operates in a competitive market with established players like GMM Pfaudler and HLE Glascoat.
- Sector Dependence: Revenue is heavily reliant 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 could impact performance.
- Export Risks: International trade policies and geopolitical tensions could affect the company’s export business.
- Valuation Risks: While the valuation is attractive compared to peers, the P/E ratio is on the higher side for a mid-sized company.
How to Apply for Standard Glass Lining IPO
You can apply for the Standard Glass Lining IPO through the following methods:
- ASBA (Application Supported by Blocked Amount):
- Log in to your net banking account.
- Navigate to the IPO section and select “Standard Glass Lining IPO.”
- Enter your bid price and quantity.
- Confirm your application and ensure sufficient funds in your account.
- UPI (Unified Payments Interface):
- Use a broker platform supporting UPI-based IPO applications.
- Link your UPI ID and approve the payment mandate.
Also Read: How to invest in Pre-IPO Stocks?
Should You Invest in Standard Glass Lining IPO?
The Standard Glass Lining IPO offers a mix of growth potential and 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.
Long-term investors looking to diversify into the niche engineering sector, this IPO could be a good addition to their portfolio. Conservative investors may want to wait and assess the company’s performance post-listing.
Disclaimer: The above article is for educational purposes only and should not be considered as investment advice. Please consult a financial advisor before making any investment decisions.
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Thanks for resuming these analyses. You insights are always great and quite informative to make any decisions. Wish you a very happy and great new year 2025
Thanks for your comment Prashanth. Happy New Year 2025
//GMM Pfaudler Ltd: P/E of 30.6x//
is this correct?
No. Its just comparison with peers to check if this IPO is over priced or under priced compared to peers
Hi Suresh
Thank you for sharing the article. we are really missing your insights of IPO. please keep posting…..
Sure Vijayan
It is definitely useful and it helps us to take a better informed decision.
Many thanks for restarting it.
Thanks Kamalji
Your IPO analysis was always all round and informative. Thanks for starting it again.
Can you please consider every 3-4 month analysing Unlisted Stocks, like the way you discuss IPO. There stainghth and weakness and valuations. It will help to buy them longterm(considering when they will IPO and post IPO 6 months hold).
Please let me know is there any way to directly contact you.
Thank Suhas. It is difficult to cover unlisted stocks as the information is not publicly available and we need to make lot of assumptions and it may not show appropriate picture. Also buying them from offline market is also tedious process, hence I regular investors may not find such info useful. Let me try.
Thks for restarting Suresh ji !
Thank you Tom. Let me know if I need to cover any specific article in coming weeks. If yes, pls comment on our other article “Suggest a topic”. Happy to cover it.
Sir, thank you so much for starting this in 2025. I was really missing your IPO insight. Happy New Year !!
Hello Anand, There are thousands of readers who have been messaging me in the last few quarters either on this blog or on FB or on Twitter asking me to restart IPO reiews, hence I restarted from now. I hope readers would find this useful.
Happy new year 2025.
Dear Mr, Suresh,
Your accurate analysis is indeed very helpful to take investment decisions in IPOs. It would be greta if you could start articles ,say on a monthly basis on Post listing of IPOs that got listed say over the past quarter or past six months. This could be useful for investors (like me!) who may not always be lucky to get an allotment in many IPOs.
Let me check the feasibility of this Krishnakanth. There are too many IPOs keep coming, hence don’t want to clutter this blog with IPO reviews + again re-review of IPOs.