Standard Glass Lining Tech files IPO papers with Sebi to raise funds

Standard Glass Lining Technology Ltd, which manufactures specialised engineering equipment for pharmaceutical and chemical sectors, has filed preliminary papers with capital markets regulator Sebi to raise funds through an Initial Public Offering (IPO).

The Telangana-based company's IPO is a combination of fresh issuance of shares worth Rs 250 crore and an Offer For Sale (OFS) of up to 1.84 crore equity shares by promoters and other selling shareholders, according to the Draft Red Herring Prospectus (DRHP).

Those selling shares in the OFS include -- S2 Engineering Services, Standard Holdings, Kandula Ramakrishna, Kandula Krishna Veni, Nageswara Rao Kandula, Katragadda Venkata Ramani and Venkata Siva Prasad Katragadda.

The company may consider raising up to Rs 50 crore in the pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.

Proceeds from the fresh to the extent of Rs 130 crore will be used for payment of a debt, Rs 30 crore for investment in a wholly-owned subsidiary, S2 Engineering Industry, Rs 20 crore for funding inorganic growth through strategic investments or acquisitions Rs 10 crore for purchase of machinery and equipment and a portion will also be used for general corporate purpose.

Standard Glass Lining Technology offers comprehensive solutions that encompass design, engineering, manufacturing, assembly, installation, and commissioning, as well as establishing standard operating procedures for pharmaceutical and chemical manufacturers on a turnkey basis.

The company's product portfolio includes essential equipment used in the production of pharmaceutical and chemical products. It has 443 customers, including end-users in the pharmaceutical, chemical, paint, biotechnology, and food and beverage sectors.

Some of its pharma clients include the likes of Aurobindo Pharma Ltd, Cadila Pharmaceutical Ltd, Deccan Fine Chemicals (India) Private Limited, Laurus Labs Ltd, Granules India Ltd, Macleods Pharmaceuticals Ltd, Natco Pharma Ltd, Piramal Pharma Ltd, Suven Pharmaceuticals Ltd, and Tagros Chemicals India.

In terms of financial, Standard Glass Lining Technology's revenue from operations increased by 9.26 per cent to Rs 543.67 crore in fiscal 2024 from Rs 497.59 crore in fiscal 2023. Further, profit after tax rose by 12.33 per cent to Rs 60 crore in fiscal 2024 from Rs 53.42 crore in fiscal 2023.

IIFL Securities and Motilal Oswal Investment Advisors are the book-running lead managers to the proposed public issue. The equity shares are proposed to be listed on BSE and NSE.