The Initial Public Offering (IPO) of Standard Glass Lining Technology Ltd saw an overwhelming response, getting fully subscribed within minutes of its launch on Monday.
As per NSE data, the IPO received bids for 6.70 crore shares against the 2.08 crore shares on offer, reflecting a subscription rate of 3.22 times. The Retail Individual Investors (RIIs) category was oversubscribed 4.47 times, while non-institutional investors subscribed 4.42 times.
Last Friday, the company raised ₹123 crore from anchor investors ahead of the IPO. The issue, priced between ₹133 and ₹140 per share, is set to close on January 8.
The public issue, worth ₹410.05 crore, includes a fresh equity issuance of ₹210 crore and an Offer for Sale (OFS) of 1.43 crore shares by promoters and other shareholders. According to the Red Herring Prospectus (RHP), major shareholders selling shares through the OFS include S2 Engineering Services, Kandula Ramakrishna, Kandula Krishna Veni, and others.
Funds from the fresh issue will be allocated as follows:
- ₹130 crore for debt repayment
- ₹30 crore for investment in its subsidiary, S2 Engineering Industry
- ₹20 crore for strategic investments or acquisitions
- ₹10 crore for purchasing machinery and equipment
- Remaining funds for general corporate purposes
The company specializes in providing turnkey solutions for pharmaceutical and chemical manufacturers, covering design, engineering, manufacturing, installation, and operational setup.
Its clientele includes major pharmaceutical companies like Aurobindo Pharma, Cadila Pharmaceutical, Granules India, Macleods Pharmaceuticals, Piramal Pharma, and Suven Pharmaceuticals.
IIFL Capital Services Ltd and Motilal Oswal Investment Advisors Ltd are the lead managers for the IPO, with KFin Technologies as the registrar. The shares will be listed on the BSE and NSE.
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