Standard Glass Lining Technology Mobilizes Rs 123 Crore from Anchor Investors Ahead of IPO
In a significant move ahead of its initial public offering (IPO), Standard Glass Lining Technology Ltd has successfully mobilized Rs 123 crore from a diverse group of anchor investors. This announcement comes as the company prepares for its public subscription, which is set to open on January 6 and conclude on January 8. The IPO is generating considerable interest in the market, reflecting the growing demand for innovative solutions in the pharmaceutical and chemical sectors.
Anchor Investors and Share Allocation
The anchor investors participating in this funding round include notable names such as ICICI Prudential Mutual Fund, Kotak Mutual Fund, Tata Mutual Fund, and Motilal Oswal Mutual Fund, among others. According to a circular released on the Bombay Stock Exchange (BSE) website, Standard Glass Lining Technology has allotted approximately 87.86 lakh shares to ten entities at a price of Rs 140 per equity share, which is at the upper end of the price band. This allocation aggregates to a total transaction size of Rs 123.01 crore, showcasing strong institutional confidence in the company.
IPO Details and Structure
The upcoming IPO has a price band set between Rs 133 and Rs 140 per share. The total issue size is Rs 410.05 crore, which comprises a fresh issuance of equity shares worth Rs 210 crore and an offer for sale (OFS) of up to 1.43 crore shares by promoters and other selling shareholders. The red herring prospectus (RHP) outlines the details of the offering, which is expected to attract significant investor interest.
Prominent shareholders participating in the OFS include S2 Engineering Services and several members of the Kandula family, among others. This move allows existing shareholders to monetize a portion of their holdings while providing new investors with an opportunity to participate in the company’s growth story.
Utilization of Proceeds
The proceeds from the fresh issue are earmarked for several strategic initiatives. A substantial portion, Rs 130 crore, will be allocated for debt repayment, which is crucial for strengthening the company’s balance sheet. Additionally, Rs 30 crore will be invested in S2 Engineering Industry, a wholly-owned subsidiary, to enhance its operational capabilities. The company also plans to allocate Rs 20 crore towards inorganic growth through strategic investments or acquisitions, while Rs 10 crore will be used for the purchase of machinery and equipment. A portion of the funds will also be directed towards general corporate purposes, ensuring that the company is well-positioned for future growth.
Comprehensive Solutions for the Pharmaceutical Sector
Standard Glass Lining Technology specializes in providing comprehensive solutions for pharmaceutical and chemical manufacturers. The company’s offerings encompass design, engineering, manufacturing, assembly, installation, and commissioning, along with the establishment of standard operating procedures on a turnkey basis. This holistic approach positions the company as a key player in the industry, catering to the diverse needs of its clients.
The company has established a robust client base, including prominent names such as Aurobindo Pharma, Cadila Pharmaceuticals, Granules India Ltd, Macleods Pharmaceuticals, Piramal Pharma, and Suven Pharmaceuticals. These partnerships underscore the company’s reputation for delivering high-quality solutions tailored to the specific requirements of the pharmaceutical sector.
Management and Listing
The IPO is being managed by IIFL Capital Services Ltd and Motilal Oswal Investment Advisors Ltd, both of which are serving as book-running lead managers. KFin Technologies has been appointed as the registrar for the issue. Upon completion of the IPO, the shares of Standard Glass Lining Technology will be listed on both the BSE and the National Stock Exchange (NSE), providing investors with a platform to trade the shares in the secondary market.
Conclusion
As Standard Glass Lining Technology gears up for its IPO, the mobilization of Rs 123 crore from anchor investors highlights the strong market confidence in the company’s growth potential. With a clear strategy for utilizing the proceeds and a solid foundation in the pharmaceutical and chemical sectors, the company is poised for a successful public offering. Investors will be closely watching the subscription results as the company embarks on this new chapter in its journey.