Standard Glass Lining's IPO fully subscribed in 20-minutes; GMP surges
What's the story
Standard Glass Lining Technology's IPO saw overwhelming demand, getting fully subscribed within 20 minutes of opening today. By 2:00pm, bids reached 8.26 times the offer, with 16.94 crore shares sought against 2.08 crore available. Ahead of the public offering, the company raised ₹123 crore from anchor investors. Priced at ₹133-140 per share, the IPO closes on January 8 and seeks to ₹410 crore.
Subscription details
Retail and NII categories fully subscribe to IPO
The retail investor quota for Standard Glass Lining's IPO has been subscribed over 10 times, while the non-institutional investors (NII) category has been subscribed 13.74 times. The IPO's allotment is expected on January 9, while its listing is scheduled for January 13. Currently, unlisted shares of Standard Glass Lining are trading at ₹237 apiece in the gray market, suggesting a listing gain of nearly 70% for investors.
Market endorsement
Brokerage firms endorse Standard Glass Lining's IPO
Several brokerage firms have rated the IPO a 'subscribe' for the long-term. Anand Rathi Research noted Standard Glass Lining's specialization in engineering equipment manufacturing for India's pharmaceutical and chemical sectors. The company's advanced technological capabilities and strategically located manufacturing facilities were also noted as strengths. Geojit Financial Services shared the same sentiment, citing the company's healthy margins, consistent revenue growth, diverse product portfolio with a focus on customization, and inorganic growth plans as reasons to subscribe for long term.
Growth projection
SBI Securities projects robust growth for Standard Glass Lining
SBI Securities has also assigned a 'subscribe for long-term' rating to the IPO, forecasting that Standard Glass Lining will grow its revenue 20-25% in the medium term with geographical and product expansion. The company plans to earn 20% of its revenue from exports by 2026, up from the current 0.5%. "While comparing with its close peers, the issue is fairly valued with superior margin profile," SBI Securities said.
IPO composition
Standard Glass IPO: A blend of fresh issuance and OFS
The ₹410.05-crore Standard Glass Lining IPO comprises fresh equity shares worth ₹210 crore and an offer for sale (OFS) of up to 1.43 crore shares by promoters and other selling shareholders. The company intends to use ₹130 crore from the fresh issue for debt repayment, ₹30 crore for investment in its wholly-owned subsidiary S2 Engineering Industry, and toward strategic investments or acquisitions, machinery purchase, and general corporate purposes.