Telangana-based Standard Glass Lining Technology Limited, one of the top five specialised engineering equipment manufacturer for pharmaceutical and chemical sectors in India, in terms of revenue in Fiscal 2024, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The Company had filed its IPO papers with Sebi on July 24, 2024.
The IPO, with a face value of ₹10 each, is a mix of fresh issuance of Rs 250 crore and an offer for sale of up to 18.44 million equity shares by promoters and Other Selling Shareholders.
The company, in consultation with the book-running lead managers, may consider an issue of specified securities, aggregating to Rs 50 crores as Pre-IPO placement shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
The proceeds from its fresh issuance to the extent of Rs 10 crore will be utilized for funding of capital expenditure requirements of our Company towards purchase of machinery and equipment; Rs 130 crore for repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the Company and investment in its wholly owned Material Subsidiary, S2 Engineering Industry Private Limited, for Repayment or prepayment, in full or in part, of all or a portion of certain Outstanding borrowings availed by S2 Engineering Industry Private Limited,
from banks and financial institutions; Rs 30 crore for Investment in its wholly owned Material Subsidiary, S2 Engineering Industry Private Limited, for funding its capital expenditure requirements towards purchase of machinery and equipment; Rs 20 crore for funding inorganic growth through strategic investments and/or acquisitions; and general corporate purposes.
Standard Glass Lining Technology offers comprehensive solutions that encompass design, engineering, manufacturing, assembly, installation, and commissioning, as well as establishing standard operating procedures for pharmaceutical and chemical manufacturers on a turnkey basis.
According to the DRHP, the company ranks among India’s top three manufacturers of specialized engineering equipment made from glass-lined, stainless steel, and nickel alloy based on revenue in Fiscal 2024. Additionally, it is one of the top three suppliers of polytetrafluoroethylene (PTFE) lined pipelines and fittings in India for the same period.
Over the past three fiscal years, it has been the fastest-growing company in its industry in terms of revenue.
IIFL Securities Limited and Motilal Oswal Investment Advisors Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.
