Standard Glass Lining Share Market Listing Today : The IPO of engineering equipment manufacturing company Standard Glass Lining Technology was a profitable deal for investors. Even though there is a huge decline in the market today, the company’s stock has made a strong debut. This stock was listed on BSE at a price of Rs 176, while the IPO price was Rs 140. In this sense, the stock has given a return of 26 percent or Rs 36 per share on listing. While the IPO had received strong subscription from investors, there were also indications of its strong listing from the gray market. Brokerage houses are also positive on the company’s outlook.
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SGLTL IPO Subscription: 185.48 times subscription
The IPO of Standard Glass Lining Technology was subscribed more than 185 times overall. The size of the IPO was Rs 410.05 crore, while it received bids of Rs 53,238.58 crore.
About 50 percent of the IPO was reserved for Qualified Institutional Buyers (QIB) and it was filled a total of 327.76 times. About 35 percent of this was reserved for retail investors and it was filled 65.71 times overall. While the remaining 15 percent was reserved for Non-Institutional Investors (NII) and it was filled a total of 275.21 times.
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10 positive factors with the company
Brokerage house Ventura Securities has listed some positive factors regarding the IPO of Standard Glass Lining Technology Limited (SGLTL).
1. Standard Glass Lining Technology Limited (SGLTL) is one of the leading manufacturers of special engineering components for the pharmaceutical and chemical sectors in India, ranking among the top 5 in terms of revenue in FY24.
2. With strong in-house capabilities across the value chain, the company is excelling in design, engineering, manufacturing, assembly, installation and commissioning.
3. SGLTL is a leading player in the production of glass-lined, stainless steel and nickel alloy based equipment, as well asPTFE-lined pipelines and fittings, ranking among the top 3 suppliers in India for these products.
4. The company’s diversified portfolio includes more than 65 products for the pharma and chemical industries, while 15 are under development.
5. SGLTL provides customized solutions for complex, large-scale projects, using alloys with thicknesses ranging from 1 mm to 60 mm.
6. The company’s ability to carry out customized processes ensures that it is in a strong position to serve its end users. Due to which its role as a major supplier in this sector is strengthened.
7. SGLTL operates 8 manufacturing facilities spread over 400,000 square feet in Hyderabad, capable of manufacturing reactors, receivers and storage tanks ranging from 30 liters to 40,000 liters. The company can manufacture 300-350 units per month, which also includes a dedicated facility to manufacture 30 Agitated Nutsche Filter Drier (ANFD) per month.
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8. As part of its growth strategy, the company is expanding capacity in the 150 mm thickness segment, targeting industries such as oil & gas, edible oil and heavy engineering, which offers significant growth potential.
9. The company has established long-term relationships with 347 customers, which include leading companies like Aurobindo Pharma, CCL Foods & Beverages and Laurus Labs. The company has achieved repeat business from more than 80% of its top 20 customers over the last few years, contributing to a strong and consistent revenue flow.
10. Through FY 2024, the company continues to leverage these relationships and its reputation for timely, high-quality deliveries to maintain and expand its market position.
growth outlook strong
Brokerage house SBI Securities says that the company’s growth outlook is strong, as the company’s revenue is likely 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.
SGLTL: What is the main risk?
• Raw Material Sourcing List
• Manufacturing facility risk
• Customer specific industry risk
• Challenge of retaining customers
(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.)
