The shares of Standard Glass Lining Technology Ltd. made a stellar debut on the stock exchanges on Monday, January 13, 2025, marking the first mainboard IPO of the year. The stock opened at ₹172 on the National Stock Exchange (NSE), reflecting a premium of 23% over its issue price of ₹140. On the Bombay Stock Exchange (BSE), it listed at ₹176, commanding an even higher premium of 26%.
Strong Grey Market Premium (GMP) Performance
Ahead of its debut, the shares of Standard Glass Lining were trading at a grey market premium (GMP) of ₹50 in the unlisted market. By the final bidding day, the GMP had surged to ₹91, indicating potential listing gains of around 36% for investors. This strong performance underscored the robust demand for the company's shares even before they hit the bourses.
Exceptional IPO Subscription
The Hyderabad-based company's IPO, open for bidding between January 6 and January 8, garnered overwhelming interest, being subscribed a massive 183.18 times at its close. The category for qualified institutional buyers (QIBs) was oversubscribed 331.60 times, while the portion for non-institutional investors (NIIs) saw subscriptions 268.50 times over. Retail investors also showed strong participation, with their quota being subscribed 64.99 times.
Key IPO Details
The IPO offered shares in a price band of ₹133-₹140 per share, with a minimum lot size of 107 shares. The public offer raised a total of ₹410.05 crore, comprising a fresh issue of ₹210 crore and an offer-for-sale (OFS) component of ₹200.05 crore.
Utilisation of IPO Proceeds
Standard Glass Lining plans to utilise the proceeds from the fresh issue to strengthen its financial and operational standing. The allocation includes:
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₹130 crore: For debt repayment.
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₹30 crore: Investment in its wholly-owned subsidiary, S2 Engineering Industry.
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₹20 crore: Strategic investments or acquisitions to drive inorganic growth.
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₹10 crore: Purchase of machinery and equipment.
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Remaining funds: General corporate purposes.
Comprehensive Solutions Provider
Standard Glass Lining Technology Ltd. is renowned for its comprehensive solutions in the pharmaceutical and chemical manufacturing sectors. The company offers end-to-end services, including design, engineering, manufacturing, assembly, installation, commissioning, and establishing standard operating procedures for its clients on a turnkey basis. Its ability to manage the entire production process in-house sets it apart in the industry.
Some of its key clients include:
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Aurobindo Pharma
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Cadila Pharmaceuticals
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Granules India Ltd.
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Macleods Pharmaceuticals
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Piramal Pharma
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Suven Pharmaceuticals
This diverse clientele highlights the company's strong foothold in the pharmaceutical industry.
Market Performance and Broader Trends
The listing of Standard Glass Lining comes amid a broader market rally. On the same day, other prominent stocks also saw gains:
| Company | Value (₹) | Change (₹) | % Change |
|---|---|---|---|
| IndusInd Bank | 963.50 | 25.90 | 2.76 |
| Axis Bank | 1055.00 | 14.30 | 1.37 |
| Britannia Industries | 4973.35 | 34.15 | 0.69 |
| Tata Consultancy Services | 4282.95 | 17.30 | 0.41 |
| Shriram Finance | 534.05 | 2.05 | 0.39 |
Strategic Vision and Growth Prospects
Standard Glass Lining’s strategic use of IPO proceeds signals its ambition to expand both organically and inorganically. With ₹30 crore earmarked for investments in its subsidiary and ₹20 crore allocated for acquisitions, the company is poised to strengthen its market position and diversify its offerings.
The investment in machinery and equipment, worth ₹10 crore, is expected to enhance its manufacturing capabilities. Additionally, the debt repayment of ₹130 crore will improve the company’s financial health, reducing interest expenses and increasing profitability.
IPO Lead Managers
IIFL Securities Ltd. and Motilal Oswal Investment Advisors Limited acted as the book-running lead managers for the IPO. KFin Technologies was the registrar, ensuring a smooth allotment process.
Conclusion
The successful listing of Standard Glass Lining Technology Ltd. on both NSE and BSE not only reflects the company’s strong fundamentals but also investor confidence in its growth potential. With strategic plans to utilise the IPO proceeds and a robust client base, the company is well-positioned to capitalise on opportunities in the pharmaceutical and chemical sectors.
As the first mainboard IPO of 2025, Standard Glass Lining has set a positive tone for the year’s primary market activities, and its stellar debut is likely to inspire confidence in upcoming public offerings.
With inputs from agencies
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