January 6, New Delhi [India]: One of India’s top five producers of specialist technical equipment for the chemical and pharmaceutical industries is Standard Glass Lining Technology Limited. For its first IPO, it has set the price range of Rs133 to Rs140 per equity share with a face value of Rs10 apiece, based on revenue in Fiscal 2024.

The Company’s Initial Public Offering (“IPO” or “Offer”) will go live for subscriptions on Monday, January 6, 2025, and end on Wednesday, January 8, 2025. Investors may place bids for multiples of 107 equity shares following the minimum of 107 equity shares.

The initial public offering (IPO) consists of a combination of new issuance up to Rs 210 crore and an offer by promoters, promoter groups, and other selling shareholders to sell up to 1,42,89,367 equity shares.

The proceeds of its new issuance, up to Rs 10 crore, will be used to finance the company’s capital expenditure needs for the acquisition of machinery and equipment; Rs 130 crore for the repayment or partial prepayment of all or a portion of certain outstanding borrowings that the company has taken out, as well as investment in its wholly owned Material Subsidiary, S2 Engineering Industry Private Limited, for the repayment or partial prepayment of all or a portion of certain outstanding borrowings that S2 Engineering Industry Private Limited has taken out from banks and financial institutions; Rs 30 crore for investment in its wholly owned Material Subsidiary, S2 Engineering Industry Private Limited, to finance its capital expenditure requirements for the acquisition of machinery and equipment; Rs 20 crore for funding inorganic growth through strategic investments and/or acquisitions; and general corporate purposes.

The capabilities of Standard Glass Lining Technology include turnkey solution design, engineering, production, assembly, installation, and commissioning as well as standard operating procedure establishment for chemical and pharmaceutical enterprises. Its basic equipment, which falls into three categories—Reaction Systems, Storage, Separation, and Drying Systems, and Plant, Engineering, and Services (including various auxiliary parts)—is used in the production of chemical and pharmaceutical goods. According to a F&S Report, it is also among the top three producers of specialist technical equipment made of glass, stainless steel, and nickel alloys in India in terms of sales in Fiscal 2024. In terms of revenue in Fiscal 2024, it is among the top three providers of pipes and fittings lined with polytetrafluoroethylene (“PTFE”) in India. Throughout the last three fiscal years, it has been the industry’s fastest-growing firm in terms of sales.

The business has the capacity to produce all of the essential specialized technical tools needed for the production of fine chemical goods and active pharmaceutical ingredients (“API”). It has provided more than 11,000 goods in the last ten years. As of June 30, 2024, 30 of the roughly 80 pharmaceutical and chemical businesses in the NSE 500 index are among its most notable clients. Strategically situated in Hyderabad, Telangana, the “Pharma Hub” of India, its eight manufacturing facilities span more than 400,000 square feet of built-up/floor space and produced 40.00% of all Indian bulk drugs in Fiscal 2024.

The issue’s registrant is KFin Technologies Limited, while the book-running lead managers are IIFL Capital Services Limited and Motilal Oswal Investment Advisors Limited.

At least 15% of the offer will be available for allocation to non-institutional investors, at least 35% of the offer will be available for allocation to retail individual bidders, and no more than 50% of the offer will be proportionately available for allocation to qualified institutional buyers through the book-building process.

Reference Notes:

The IPO’s issue size is determined by the pricing range’s upper and lower ends.