Standard Glass Lining Technology IPO

Standard Glass Lining IPO will open for subscription on January 6th, 2024. The IPO will close on January 8th. Issue size of the IPO is Rs 410.05 crore. The IPO is a mainboard IPO. Post the IPO, the stock will get listed on BSE and NSE. Listing date is 13th January, 2024.

IPO price band is Rs 133 – 140 per share. Minimum bid lot size is 107 shares. Minimum investment required is therefore Rs 14,980.

The Company

Standard Glass Lining manufactures specialized engineering equipment. The equipment made by it find application in the pharmaceutical and chemical industries. It makes equipment for reaction systems; storage, separation and drying system; and plant, engineering and services components. It is among the biggest suppliers of polytetrafluoroethylene (PTFE) pipes in India.

Financial performance

Net profit of the company in FY 22 stood at Rs 25.1 crore; in FY 23 it stood at Rs 53.4 crore; in FY 24 it was Rs 60 crore. Net profit margin of the company in FY 22 stood at 10.41%; in FY 23 it was 10.68%; in FY 24 it was 10.92%. Return on Equity (ROE) of the company in FY 22 was 54.89%; in FY 23 it was 47.56%; in FY 24 it was 20.74%. Return on Capital Employed (ROCE) of the company in FY 22 was 42.03%; in FY 23 it was 43.43%; in FY 24 it was 10.81%. Total debt-to-equity ratio of the company in FY 22 was 1.01; in FY 23 it was 0.53; in FY 24 it was 0.32. Net debt-to-equity ratio of the company in FY 22 was 1.01; in FY 23 it was 0.49; in FY 24 it was 0.19. The company has reduced its leverage or debt over the three-year period.

Valuation

Diluted Earnings Per Share (EPS) of the company in FY 22 was Rs 2.22; in FY 23 it was Rs 3.49; in FY 24 it was Rs 3.52. Average basic EPS of the company over the three-year period stood at 3.076. Assuming that the company will be able to have an EPS over the next year, around its average EPS of the past three years, the Price-to-Earnings (P/E) ratio of the IPO, at the upper end of the IPO price band, comes to 45.51.

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