Upcoming IPO: Standard Glass Lining Technology files DRHP for IPO with SEBI

Telangana-based Standard Glass Lining Technology Ltd, has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Standard Glass Lining Technology offers comprehensive solutions that involve design, engineering, production, assembly, installation, and commissioning, as well as developing standard operating procedures for pharmaceutical and chemical firms on a turnkey basis.

Issue details 

The initial public offering (IPO), which has a face value of ₹10 per share, consists of a fresh ₹250 crore issue as well as an offer by founders and other selling shareholders to sell up to 18.44 million equity shares.

The amount of equity shares up for sale is as follows: up to 5.20 million by M/s S2 Engineering Services; up to 4.90 million by Kandula Ramakrishna; up to 4.13 million by Kandula Krishna Veni; up to 7.65 lakh by Nageswara Rao Kandula; up to 5.04 lakh by M/s Standard Holdings; up to 5 lakh by Katragadda Venkata Ramani; up to 3.50 lakh by Venkata Siva Prasad Katragadda; up to 4.50 lakh by Venkata Sandeep Gopineedi; up to 3.50 lakh by Mahitha Katragadda; and up to 3.50 lakh by Katragadda Harini.

The proceeds from its fresh issuance to the extent of ₹10 crore will be utilized for funding of capital expenditure requirements of our Company towards purchase of machinery and equipment; ₹130 crore for repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the Company and investment in its wholly owned Material Subsidiary, S2 Engineering Industry Private Limited, for Repayment or prepayment, in full or in part, of all or a portion of certain Outstanding borrowings availed by S2 Engineering Industry Private Limited, from banks and financial institutions; ₹30 crore for Investment in its wholly owned Material Subsidiary, S2 Engineering Industry Private Limited, for funding its capital expenditure requirements towards purchase of machinery and equipment; ₹20 crore for funding inorganic growth through strategic investments and/or acquisitions; and general corporate purposes.

Based on revenue in Fiscal 2024, the DRHP lists the firm as one of India's top three producers of specialist engineering equipment composed of nickel alloy, stainless steel, and glass-lined. For the same time period, it is also among India's top three providers of pipes and fittings lined with polytetrafluoroethylene (PTFE). In terms of revenue growth over the last three fiscal years, it has outpaced other companies in its industry.

Revenue from operations at Standard Glass Lining Technologies increased by 9.26% from ₹497.59 crore in fiscal 2023 to ₹543.67 crore in fiscal 2024. This increase was mostly attributable to higher overall product sales, higher product sale prices, higher service and comprehensive maintenance contract sales, and higher profit after taxes, which rose from ₹53.42 crore in fiscal 2023 to ₹60.01 crore in fiscal 2024.

The registrar of the offer is KFin Technologies Limited, while the book-running lead managers are IIFL Securities Limited and Motilal Oswal Investment Advisors Limited. It is suggested that the equity shares be listed on the NSE and BSE.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.