Standard Glass Lining Plans To Raise Rs 600 Crore Via IPO; Files DRHP with SEBI

Hyderabad-based Standard Glass Lining Technology Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 600 crore through an initial public offering (IPO).
According to the DRHP, the IPO consists of a fresh issue of shares worth Rs 250 crore and an offer for sale of 18.444 million shares, totalling Rs 350 crore. The shares have a face value of Rs 10 each.

The company, which manufactures specialized engineering equipment for the pharmaceutical and chemical sectors in India, will utilize the funds raised through a 100% book-building process. The proceeds will be used for capital expenditure, loan repayment, funding inorganic growth, and general corporate purposes.

Promoters S2 Engineering, Kandula Ramakrishna, Kandula Krishna Veni, Nageswar Rao Kandula, Katragadda Mohan Rao, Katragadda Sivaprasad, and Kudaravalli Punna Rao, along with six members of the promoter group and two other shareholders, will sell part of their holdings in this offer.

"The offer price, floor price, and cap price will be determined in consultation with the Book Running Lead Managers (BRLMs) based on market demand," the company stated. The shares will be listed on both BSE and NSE.

In FY24, the company reported total revenues of Rs 543.67 crore, an increase from Rs 497.59 crore in FY23.

IIFL Securities and Motilal Oswal Investment Advisors are the merchant bankers for the issue.

Standard Glass Lining Technology Limited (SGL), based in Hyderabad, Telangana, specializes in manufacturing glass-lined, stainless steel, and high-alloy engineering equipment. It also supplies polytetrafluoroethylene (PTFE) lined pipelines and fittings, primarily serving the chemical, pharmaceutical, food, and fertilizer sectors. SGL operates eight manufacturing facilities spanning over 400,000 square feet in Hyderabad, with a production capacity of over 300 vessels per month, ranging from 63 to 40,000 liters.

Under the leadership of Managing Director Mr. Nageswara Rao Kandula, SGL boasts over three decades of expertise in creating glass-lined products that meet international standards for a wide range of chemically aggressive applications.

In November 2023, Asahi Glassplant Inc. (AGI Japan) announced a strategic investment of up to 200 Crores INR in Standard Glass Lining Technology Limited and its affiliated companies, initiating a long-term business partnership. AGI Japan, along with GL HAKKO and its affiliates, will acquire a minority stake in Standard Glass Lining Technology Limited, positioning this collaboration as a significant influence in the industries and regions where both the AGI Group and the Standard Group operate.

Under the definitive agreements, AGI Japan will play a crucial role in helping Standard enter the Japanese market. The partnership will utilize various strategies, including private label arrangements, co-branding initiatives, and the supply of components, all while maintaining the high-quality standards expected by AGI and its valued customers.