Hyderabad: Hyderabad-based Standard Glass Lining Technology Limited, one of India’s top five specialized engineering equipment manufacturers for the pharmaceutical and chemical sectors, has announced its Initial Public Offering (IPO).
The IPO will open for subscription on January 6, 2025, and close on January 8, 2025.
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IPO Details
- Price Band: ₹133 to ₹140 per equity share of face value ₹10 each.
- Bid Lot: Minimum of 107 equity shares, and in multiples of 107 shares thereafter.
- IPO Structure:
- Fresh Issue: Up to ₹210 crore.
- Offer for Sale (OFS): Up to 1,42,89,367 equity shares by the promoter selling and promoter group, along with other selling shareholders.
Utilization of IPO Proceeds
- Capital Expenditure:
- ₹10 crore for purchasing machinery and equipment.
- ₹30 crore for the capital expenditure of its wholly owned subsidiary, S2 Engineering Industry Private Limited.
- Debt Repayment:
- ₹130 crore to repay or prepay certain outstanding borrowings of the company and its subsidiary.
- Inorganic Growth:
- ₹20 crore for strategic investments and/or acquisitions.
- General Corporate Purposes: Allocation of the remaining funds for corporate growth and operational needs.
IPO Process and Allocation
The offer will be made through a book-building process:
- Up to 50% allocated to Qualified Institutional Buyers (QIBs).
- At least 15% allocated to Non-Institutional Investors (NIIs).
- At least 35% reserved for Retail Individual Investors (RIIs).
The IPO will be managed by IIFL Capital Services Limited and Motilal Oswal Investment Advisors Limited, while KFin Technologies Limited will serve as the registrar of the issue.
Company Highlights
- Manufacturing Facilities: Operates across eight strategically located manufacturing units in Hyderabad, covering over 400,000 sq. ft. of built-up/floor area.
- Specialized Capabilities: The company excels in designing, engineering, manufacturing, assembly, installation, and commissioning solutions for pharmaceutical and chemical manufacturers.
- Production Excellence: Over the last decade, the company has supplied more than 11,000 products, showcasing its in-house capabilities in the active pharmaceutical ingredient (API) and fine chemical manufacturing sectors.
Strategic Growth and Vision
The IPO funds will bolster the company’s ability to expand its manufacturing capacity, reduce debt, and explore growth opportunities through strategic investments and acquisitions. This move is expected to enhance its market presence and cater to the increasing demand for specialized engineering solutions in India.
