Standard Glass Lining Technology Ltd, which manufactures specialist technical equipment for the pharmaceutical and chemical industries, has filed preliminary paperwork with capital markets regulator Sebi to raise funds through an Initial Public Offering (IPO).
According to the Draft Red Herring Prospectus (DRHP), the Telangana-based company's IPO will include a fresh offering of Rs 250 crore in shares, as well as an Offer For Sale (OFS) of up to 1.84 crore equity shares by promoters and selling shareholders.
Ofs shares are being sold by S2 Engineering Services, Standard Holdings, Kandula Ramakrishna, Kandula Krishna Veni, Nageswara Rao Kandula, Katragadda Venkata Ramani, and Venkata Siva Prasad Katragadda. The company may consider raising up to Rs 50 crore through a pre-IPO placement. If such a placement is successful, the new issue size will be reduced.
The additional proceeds of Rs 130 crore will be used to repay debt, Rs 30 crore to invest in a wholly-owned subsidiary, S2 Engineering Industry, and Rs 20 crore to promote inorganic growth through strategic investments or acquisitions. Rs 10 crore will be used to purchase machinery and equipment, with a portion going for general corporate objectives. Standard Glass Lining Technology offers comprehensive solutions to pharmaceutical and chemical companies, including design, engineering, manufacturing, assembly, installation, and commissioning, as well as the formulation of standard operating procedures.
The company's product portfolio includes key equipment used in the manufacture of pharmaceutical and chemical products. It serves 443 clients from various industries, including pharmaceuticals, chemicals, paint, biotechnology, and food and beverage.
Some of its pharmaceutical clients include Aurobindo Pharma Ltd, Cadila Pharmaceutical Ltd, Deccan Fine Chemicals (India) Private Limited, Laurus Labs Ltd, Granules India Ltd, Macleods Pharmaceuticals Ltd, Natco Pharma Ltd, Piramal Pharma Ltd, Suven Pharmaceuticals Ltd, and Tagros Chemicals India.
In terms of finances, Standard Glass Lining Technology's operational revenue increased by 9.26% to Rs 543.67 crore in fiscal 2024, from Rs 497.59 crore in fiscal 2023. Furthermore, profit after tax rose by 12.33% to Rs 60 crore in fiscal 2024, up from Rs 53.42 crore in fiscal 2023. IIFL Securities and Motilal Oswal Investment Advisors are the book-running lead managers for the upcoming public offering. The equity shares are scheduled to be listed on the BSE and NSE.
