Subscribe or Avoid Standard Glass Lining IPO :The first IPO of the year 2025 is going to open next week on 6 January 2025. The IPO of engineering equipment manufacturing company Standard Glass Lining Technology is the first IPO to be launched this year. It can be subscribed till 8 January 2025. Anchor investors will be able to bid in it on 3rd January. The size of the IPO is Rs 410.05 crore. Whereas the company has fixed the price band for IPO at Rs 133-140 per share. The lot size in the IPO is 107 shares.
Jhunjhunwala Stocks: These 2 stocks of Jhunjhunwala portfolio will bring you income, if you buy now then expect returns up to 29%.
GMP: Premium in gray market 61%
There is a craze in the gray market regarding the IPO of Standard Glass Lining Technology. The unlisted stock of the company is trading at a premium of Rs 86 in the gray market. This is a 61 percent premium compared to the upper price band of IPO of Rs 140.
About IPO
The size of the IPO of Standard Glass Lining is Rs 410.05 crore. In this, fresh equity shares worth Rs 210 crore will be issued. Whereas 1,42,89,367 shares will be sold through offer for sale. Standard Glass Lining Technology has reduced the size of its sale offer to about 1.43 crore equity shares from the earlier planned 1.84 crore shares. Share allotment under IPO will take place on January 9, while the company’s shares will be listed on BSE and NSE on January 13. The quota for retail investors in IPO is 35% reserved. Whereas 50% share in IPO is reserved for QIB. Whereas 15% quota has been reserved for NII.
NFO: UTI Mutual Fund launches Quant Fund, you can do SIP with minimum Rs 500, what will be the investment strategy
Long term subscription advice
Brokerage house SBI Securities has advised to subscribe for the long term in the IPO of Standard Glass Lining Technology. The brokerage says the company is valued at FY2424 P/E and EV/EBITDA multiple of 47.8x/28.6x, based on the upper price band on post-issue capital. The company witnessed strong CAGR growth of 50.5%, 53.1% and 54.5% in its Revenue, EBITDA and PAT between FY22-FY24 to Rs 543.7 crore, Rs 94.9 crore and Rs 60 crore, respectively.
The company’s growth outlook is strong, as the company’s revenue is expected to grow between 20-25% in the mid-term with geographical and product expansion. The company is targeting to achieve 20 percent revenue from exports by 2026, whereas currently it is 0.5%. When compared with its nearest competitors, the issue is fairly valued with a better margin profile.
New Year Picks: Axis Securities lists best 7 themes and 12 stocks for 2025, investors can get returns up to 46%
What are the main risks?
• Raw Material Sourcing List
• Manufacturing facility risk
• Customer specific industry risk
• Challenge of retaining customers
2025 Top Picks: Motilal Oswal selected top 10 stocks for the new year, can get returns up to 36% from current price
Company’s growth strategy
• Aim to continue expanding and improving the existing product portfolio, as well as entering additional end user industries.
• Capacity expansion by enhancing the capacities of existing manufacturing plants as well as setting up new manufacturing plants.
• Taking advantage of increasing demand from international markets to increase exports.
• Growing organically through strategic acquisitions and alliances.
(Disclaimer: The advice to invest in stocks has been given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
