Standard Glass Lining Technology Secures Rs 123 Crore from Anchor Investors Before IPO Launch

Standard Glass Lining Technology has secured Rs 123 crore from anchor investors before its initial public offering (IPO) opens on January 6. The company has allocated 87.86 lakh shares to ten entities at Rs 140 per share, the top of the price range. This transaction totals Rs 123.01 crore, as stated in a circular on the BSE website.

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The IPO, priced between Rs 133 and Rs 140 per share, will close on January 8. The public issue is valued at Rs 410.05 crore, comprising a fresh equity issuance worth Rs 210 crore and an offer for sale (OFS) of up to 1.43 crore shares by promoters and other shareholders, according to the red herring prospectus.

Anchor Investors and Share Allocation

Anchor investors include ICICI Prudential Mutual Fund, Kotak Mutual Fund, Tata Mutual Fund, Motilal Oswal Mutual Fund, and others like Massachusetts Institute of Technology and Amansa Holdings. These investors have been allotted shares at the upper price band of Rs 140 each.

The funds from the fresh issue will be used for various purposes. Rs 130 crore is earmarked for debt repayment, while Rs 30 crore will be invested in a wholly-owned subsidiary, S2 Engineering Industry. Additionally, Rs 20 crore will support inorganic growth through strategic investments or acquisitions.

Utilisation of Funds

The company plans to use Rs 10 crore for purchasing machinery and equipment. A portion of the proceeds will also go towards general corporate purposes. The shares are set to be listed on both the BSE and NSE.

Shareholders selling through the OFS route include S2 Engineering Services, Kandula Ramakrishna, Kandula Krishna Veni, Nageswara Rao Kandula, Standard Holdings, Katragadda Venkata Ramani, and Venkata Siva Prasad Katragadda.

Company's Offerings and Clients

Standard Glass Lining Technology provides comprehensive solutions for pharmaceutical and chemical manufacturers. Their services include design, engineering, manufacturing, assembly, installation, commissioning, and establishing standard operating procedures on a turnkey basis.

The company's pharmaceutical clients feature prominent names such as Aurobindo Pharma, Cadila Pharmaceutical, Granules India Ltd., Macleods Pharmaceuticals, Piramal Pharma, and Suven Pharmaceuticals.

Management of the Issue

IIFL Capital Services Ltd., previously known as IIFL Securities Ltd., along with Motilal Oswal Investment Advisors Ltd., are the book-running lead managers for this issue. KFin Technologies serves as the registrar for the IPO.

This strategic move by Standard Glass Lining Technology aims to strengthen its financial position while expanding its market presence through strategic investments and acquisitions.