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Standard Glass Lining Technology Limited is a manufacturer of engineering equipment for the pharmaceutical and chemical sectors.
Standard Glass Lining IPO is looking to raise Rs 410.05 crores. The issue is a combination of fresh issue of aggregating to Rs 210 crores and offer for sale aggregating to Rs 200.05 crores.

About Standard Glass Lining Technology Limited

• Standard Glass Lining Technology Limited (SGL) is a prominent manufacturer of specialized engineering equipment for the pharmaceutical and chemical sectors in India.
• Established in 2012 it is headquartered in Hyderabad, .
• The company focuses on producing glass-lined reactors, storage tanks, and other critical equipment, serving a diverse clientele that includes major pharmaceutical companies.
• SGL operates eight manufacturing facilities with a total area exceeding 400,000 sq. ft., strategically located in Hyderabad, which is recognized as a major hub for pharmaceutical production in India.
• The company has the capacity to produce over 300 glass-lined vessels per month, ranging from 63 to 40,000 liters.
• Their capabilities include designing, engineering, manufacturing, assembly, installation and commissioning solutions as well as establishing standard operating procedures for pharmaceutical and chemical manufacturers on a turnkey basis.
• Their portfolio comprises core equipments used in the manufacturing of pharmaceutical and chemical products, which can be categorised into:
  • ‍Reaction Systems
  • Storage, Separation and Drying Systems
  • Plant,Engineering and Services (including other ancillary parts)
• The Promoters of the Company are Nageswara Rao Kandula, Kandula Krishna Veni, Kandula Ramakrishna, Venkata Mohana Rao Katragadda, Kudaravalli Punna Rao and M/s S2 Engineering Services

Financials : Standard Glass Lining IPO

Anchors: Standard Glass Lining IPO

• Standard Glass Lining Technology Limited successfully secured approximately ₹123.02 crore from a group of anchor investors. Notable participants in this round include:
  • Amansa Holdings
  • Clarus Capital
  • ICICI Prudential Mutual Fund
  • Kotak Mahindra Trustee
  • Tata Mutual Fund
  • Massachusetts Institute of Technology (MIT)

Salient Points: Standard Glass Lining IPO

• The Indian chemical manufacturing industry is projected to grow at a 9% CAGR and reach Rs 70 bn by FY26. Pharma capital spending is expected to be in range of Rs 120-150 bn annually until FY27.
• Offer for sale of Rs. 200 cr by promoter. Their 72.5% to drop to 60% post IPO.
• Use of IPO Proceeds:
  • Capital Expenditure: Up to ₹10 crore will be allocated for purchasing machinery and equipment.
  • Debt Repayment: Up to ₹130 crore will be used to repay or prepay outstanding borrowings.
  • Investment in Subsidiaries: ₹30 crore will be invested in its wholly-owned Material Subsidiary and S2 Engineering Industry Private Limited for capital expenditure.
  • Inorganic Growth: ₹20 crore will be used for strategic investments and acquisitions.
  • General Corporate Purposes: Remaining funds will be used for general corporate needs.
• One of the top five specialized engineering equipment manufacturers for pharmaceutical and chemical sectors in India with products across entire value chain
• Customized and innovative product offering across the entire pharmaceutical and chemical manufacturing value chain
• Strategically located manufacturing facilities with advanced technological capabilities
• Long term relationships with marquee clientele across sectors
• Consistent track record of profitable growth
• The company serves 347 clients as of September 2024.This includes names like Aurobindo Pharma, Laurus Labs, Natco Pharma, and Piramal Pharma.
• It has established long-term relationships with 13 of its top 20 customers, spanning over three years.
• Revenue Bifurcation By Industry:
  Pharmaceuticals: 81.79%
  Chemicals: 12.54%
  Others (Food and Beverages, Paint, Biotech): 5.67%
• Revenue Bifurcation by Product segment:
  Reaction Systems: 56.71%
  Storage, Separation & Drying Systems: 30.08%
  Plant, Engineering & Services: 13.21%

• Standard Glass Lining Technology Limited stands out as a key player in the specialized engineering equipment market for pharmaceuticals and chemicals in India. :
• Peers

• PE FY25 (annualized) 38.5x. PE FY24 46.5x.
• Standard Glass Lining Technology Limited stands out as a key player in the specialized engineering equipment market for pharmaceuticals and chemicals in India. 
• Revenue from Operations grew 50.45% between FY 2022 to FY 2024. The company has been the fastest-growing company in the industry as compared to peers in the past 3 years.
• The company’s growth has been bolstered by its inorganic acquisitions of Stanpumps Engineering Industries, S2 Engineering Services, Higenic Flora Polymers, Yashasve Glass Lining Industries and C.P.K Engineers Pvt. Ltd.
• I intend to apply in Standard Glass Lining IPO. Company should benefit from rising pharma & chemical capex. It is a key player in the specialized engineering equipment to these segments. Issue looks quite promising. Long term outlook positive.
• GMP as per social media ruled about 97 (69%).
• This post is exploratory and educational purposes only.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared 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. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.