A Strong Start to 2025 IPOs
The Standard Glass Lining IPO, the first mainboard initial public offering of 2025, opened for subscription on January 6 and was fully subscribed within an hour. The IPO has generated significant investor interest, reflecting strong demand across retail and institutional segments. Scheduled to close on January 8, the IPO has a price band of ₹133 to ₹140 per share and aims to raise ₹410.05 crore.
Subscription Details: Overwhelming Response
Oversubscription Rates
As of 11:30 AM on January 6, the IPO was subscribed 4.24 times, receiving bids for 8.83 crore shares against 2.08 crore shares on offer:
- Retail Investors: Subscribed 5.69 times.
- Non-Institutional Investors (NIIs): Subscribed 6.29 times.
- Qualified Institutional Buyers (QIBs): Yet to fully disclose participation.
Subscription Period
The IPO will remain open for subscription from January 6 to January 8, 2025.
IPO Structure and Price Band
Issue Size
The ₹410.05 crore IPO comprises:
- Fresh Issue: ₹210 crore worth of new equity shares.
- Offer-for-Sale (OFS): 1.43 crore shares being divested by existing shareholders, including:
- S2 Engineering Services
- Standard Holdings
- Prominent individuals like Venkata Siva Prasad Katragadda, Kandula Ramakrishna, Nageswara Rao Kandula, and others.
Price Band and Lot Size
- Price Band: ₹133–₹140 per share.
- Lot Size: Retail investors must apply for a minimum of 107 shares, requiring an investment of ₹14,980 at the upper price band.
Investor Reservation
- Retail Investors: 35% of the net issue.
- Qualified Institutional Buyers (QIBs): 50% of the net issue.
- Non-Institutional Investors (NIIs): 15% of the net issue.
Anchor Investors: A Boost Before the IPO
Before the IPO launch, Standard Glass Lining secured ₹123 crore from anchor investors. Prominent participants include:
- ICICI Prudential Mutual Fund
- Tata Mutual Fund
- Kotak Mutual Fund
- Amansa Holdings
- Massachusetts Institute of Technology
- Motilal Oswal Mutual Fund
The company allocated 87.86 lakh shares to these entities at the upper price band of ₹140 per share.
Key Dates for Investors
- Subscription Period: January 6–8
- Basis of Allotment: January 9
- Refund Initiation: January 10
- Demat Transfer: January 10
- Listing Date: January 13 (on BSE and NSE)
Utilization of IPO Proceeds
The funds raised from the fresh issue will be used for:
- Subsidiary Investments: To support the growth of subsidiary businesses.
- Debt Reduction: Clearing existing liabilities to improve financial health.
- Inorganic Growth: For acquisitions and partnerships.
- Equipment Purchases: Enhancing operational capacity.
- Corporate General Purposes: For day-to-day operations and strategic initiatives.
About Standard Glass Lining Technology
Company Overview
Standard Glass Lining Technology specializes in providing turnkey solutions for pharmaceutical and chemical manufacturers, covering design, engineering, installation, and commissioning.
Clientele
The company boasts an impressive list of clients, including:
- Suven Pharmaceuticals
- Cadila Pharmaceuticals
- Macleods Pharmaceuticals
- Piramal Pharma
- Aurobindo Pharma
- Granules India Ltd
Market Position
The company has established itself as a reliable provider of engineering and installation solutions, catering to high-demand industries such as pharmaceuticals and chemicals.
Should You Invest in Standard Glass Lining IPO?
Pros of Investing
- Strong Demand: The IPO’s oversubscription within an hour reflects strong market confidence.
- Established Client Base: Partnerships with leading pharmaceutical and chemical companies ensure steady demand.
- Strategic Fund Utilization: Focus on debt reduction and capacity expansion signals sustainable growth.
- Anchor Investor Backing: Participation from major institutional investors adds credibility.
Risks to Consider
- Market Volatility: The stock market’s performance could impact post-listing gains.
- Competition: The pharmaceutical and chemical engineering sector is competitive.
Expert Recommendation
Investors are advised to consider the IPO’s strong fundamentals, robust client base, and strategic use of proceeds. Retail investors can apply for shares, keeping long-term growth potential in mind.
Conclusion: A Promising Start to 2025 IPOs
The Standard Glass Lining IPO has set a strong precedent for the year, reflecting investor confidence and the company’s solid market reputation. With significant oversubscription, strategic fund allocation, and anchor investor backing, the IPO is poised to deliver promising results post-listing. Retail and institutional investors alike are likely to view this as a lucrative opportunity in the pharmaceutical and chemical manufacturing support sector.A Strong Start to 2025 IPOs
The Standard Glass Lining IPO, the first mainboard initial public offering of 2025, opened for subscription on January 6 and was fully subscribed within an hour. The IPO has generated significant investor interest, reflecting strong demand across retail and institutional segments. Scheduled to close on January 8, the IPO has a price band of ₹133 to ₹140 per share and aims to raise ₹410.05 crore.
Subscription Details: Overwhelming Response
Oversubscription Rates
As of 11:30 AM on January 6, the IPO was subscribed 4.24 times, receiving bids for 8.83 crore shares against 2.08 crore shares on offer:
- Retail Investors: Subscribed 5.69 times.
- Non-Institutional Investors (NIIs): Subscribed 6.29 times.
- Qualified Institutional Buyers (QIBs): Yet to fully disclose participation.
Subscription Period
The IPO will remain open for subscription from January 6 to January 8, 2025.
IPO Structure and Price Band
Issue Size
The ₹410.05 crore IPO comprises:
- Fresh Issue: ₹210 crore worth of new equity shares.
- Offer-for-Sale (OFS): 1.43 crore shares being divested by existing shareholders, including:
- S2 Engineering Services
- Standard Holdings
- Prominent individuals like Venkata Siva Prasad Katragadda, Kandula Ramakrishna, Nageswara Rao Kandula, and others.
Price Band and Lot Size
- Price Band: ₹133–₹140 per share.
- Lot Size: Retail investors must apply for a minimum of 107 shares, requiring an investment of ₹14,980 at the upper price band.
Investor Reservation
- Retail Investors: 35% of the net issue.
- Qualified Institutional Buyers (QIBs): 50% of the net issue.
- Non-Institutional Investors (NIIs): 15% of the net issue.
Anchor Investors: A Boost Before the IPO
Before the IPO launch, Standard Glass Lining secured ₹123 crore from anchor investors. Prominent participants include:
- ICICI Prudential Mutual Fund
- Tata Mutual Fund
- Kotak Mutual Fund
- Amansa Holdings
- Massachusetts Institute of Technology
- Motilal Oswal Mutual Fund
The company allocated 87.86 lakh shares to these entities at the upper price band of ₹140 per share.
Key Dates for Investors
- Subscription Period: January 6–8
- Basis of Allotment: January 9
- Refund Initiation: January 10
- Demat Transfer: January 10
- Listing Date: January 13 (on BSE and NSE)
Utilization of IPO Proceeds
The funds raised from the fresh issue will be used for:
- Subsidiary Investments: To support the growth of subsidiary businesses.
- Debt Reduction: Clearing existing liabilities to improve financial health.
- Inorganic Growth: For acquisitions and partnerships.
- Equipment Purchases: Enhancing operational capacity.
- Corporate General Purposes: For day-to-day operations and strategic initiatives.
About Standard Glass Lining Technology
Company Overview
Standard Glass Lining Technology specializes in providing turnkey solutions for pharmaceutical and chemical manufacturers, covering design, engineering, installation, and commissioning.
Clientele
The company boasts an impressive list of clients, including:
- Suven Pharmaceuticals
- Cadila Pharmaceuticals
- Macleods Pharmaceuticals
- Piramal Pharma
- Aurobindo Pharma
- Granules India Ltd
Market Position
The company has established itself as a reliable provider of engineering and installation solutions, catering to high-demand industries such as pharmaceuticals and chemicals.
Should You Invest in Standard Glass Lining IPO?
Pros of Investing
- Strong Demand: The IPO’s oversubscription within an hour reflects strong market confidence.
- Established Client Base: Partnerships with leading pharmaceutical and chemical companies ensure steady demand.
- Strategic Fund Utilization: Focus on debt reduction and capacity expansion signals sustainable growth.
- Anchor Investor Backing: Participation from major institutional investors adds credibility.
Risks to Consider
- Market Volatility: The stock market’s performance could impact post-listing gains.
- Competition: The pharmaceutical and chemical engineering sector is competitive.
Expert Recommendation
Investors are advised to consider the IPO’s strong fundamentals, robust client base, and strategic use of proceeds. Retail investors can apply for shares, keeping long-term growth potential in mind.
A Promising Start to 2025 IPOs
The Standard Glass Lining IPO has set a strong precedent for the year, reflecting investor confidence and the company’s solid market reputation. With significant oversubscription, strategic fund allocation, and anchor investor backing, the IPO is poised to deliver promising results post-listing. Retail and institutional investors alike are likely to view this as a lucrative opportunity in the pharmaceutical and chemical manufacturing support sector.