Agarwal Float Glass IPO (SME) Overview

Agarwal Float Glass IPO consists of an offering of 21,90,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 42 per equity share. The shares will be listed on NSE Emerge Platform. Company is engaged in the business of trading of glass and specialised glass products by procuring quality products from manufacturers and selling it either through sales managers or directly to customers.

  • Company forms a part of the Agarwal Group which has a legacy of more than two decades.
  • Promoters, Uma Shankar Agarwal and Mahesh Kumar Agarwal had set up the Agarwal Group in 1997 by setting up a sole proprietorship under the name of ‘Agarwal Glass House’ in Rajasthan for trading of glass and glass products.
  • Products find applications in office buildings, hotels, institutions, banks, insurance companies, shopping malls and diplomatic residences. Some of its key products include toughened glass, frosted glass, leaguered glass, figure glass, insulated glass, bullet resistant glass etc.

Agarwal Float Glass IPO: Financials

Particulars/Rs. LacsH1fy23202220212020
Revenue from operations2,356.304,210.223,162.743,208.85
Profit after Tax267.75101.6824.738.83
Share Capital202.14202.14202.14202.14
Net Worth595.43327.68226.02201.3
Earnings per Share13.255.031.220.44
Net Asset Value per equity share29.4616.2111.189.96
Total Borrowings1167.911141.781175.31120.38
Post issue Share Capital724   
FV10   
IPO price42   
EPS FY221.40   
PE Fy2229.91   
EPS annualized7.40   
PE5.68   
Market cap in Lacs3041   
Market Cap/sales0.72   

Agarwal Float Glass IPO: Salient Points

  • The issue and the net issue will constitute 30.23% of the share capital.
  • The Company proposes to utilize the funds which are being raised through this Issue towards the following objects:
    • Funding the working capital requirements of the company
    • General Corporate Purposes
  • Company is a wholesaler of glass and glass products,
  • Business operations are located in Rajasthan and we are carrying our business mainly with market players from Rajasthan itself.
  • Company has entered into agreements for fund based and non-fund-based borrowings with HDFC Bank Limited.
  • Company is dependent upon our suppliers and distributors, namely Saint-Gobain India Private Limited, Sisecam Flat Glass India Private Limited, Gold Plus Glass Industry Limited, Asahi India Glass Limited and Gujarat Guardian Limited,, for delivering quality products to our customers.
  • Social media reports low or negligible GMP.
  • PE ratio is 30x (fy22 earnings)  and 6x (fy23 annualized)
  • I do not intend to apply in Agarwal Float Glass IPO.
  • SME IPO are more risky.
  • Please do your own diligence as SME IPOs are more volatile and risky than mainboard IPOs and need more funds.

  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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