Standard Glass Lining Technology Limited
Standard Glass Lining Technology Limited
SGLTL
₹14,231 /-
Min. Investment
107/- Shares
IPO Listing Details
Listed On
13 Jan 2025
Issue Price
₹140.00
Listing Price
₹ 172.00
Listing Gains
₹ 32.00 (+22.86%)
Min. Investment
₹ 14,231 /-
Apply Dates Range
06 Jan 25 – 08 Jan 25
Price Range
₹ 133 – ₹ 140
Lot Size
107
Issue Size
410.05Cr
Standard Glass Lining Technology Limited
Standard Glass Lining Technology Limited (SGL), founded in 2012 and based in Hyderabad, India, is a specialized engineering equipment manufacturer catering to the pharmaceutical and chemical sectors. The company operates under the leadership of Managing Director Nageswara Rao Kandula and has six promoters, including Kandula Krishna Veni and Kudaravalli Punna Rao. SGL’s product portfolio includes glass-lined reactors, storage vessels, and other industrial process equipment. With a strong focus on innovation and quality, the company has shown consistent financial growth, reporting an EBITDA of ₹1,009.19 million for FY 2024 and a return on equity of 20.74%. SGL is now going public with a 100% book-built IPO to raise ₹2,100 million, aiming to expand its manufacturing capabilities and strengthen its market position.
| Founded In | September 6, 2012 |
| Industry Type | manufacturer for pharmaceutical |
| Managing Director | Kandula Nageswara Rao |
| P/E Ratio (post) | 38.5 |
| Price-to-Sales Ratio | 12 |
| EBITDA | ₹1,009.19 |
| Return on Equity | 20.74% |
| Revenue Growth | 9.26% YoY |
| Free Cash Flow | — |
| Debt-to-Equity Ratio | 0.32 |
| Earnings per Share | ₹1.89 |
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Standard Glass Lining Technology Limited (SGL), incorporated in 2012 and headquartered in Hyderabad, India, is a specialized engineering equipment manufacturer catering to the pharmaceutical and chemical industries. The company operates under the leadership of Managing Director Nageswara Rao Kandula and has six promoters, including Kandula Krishna Veni and Kudaravalli Punna Rao. SGL offers end-to-end customized solutions, producing glass-lined reactors, storage vessels, and other industrial process equipment. With a monthly capacity of 150-200 glass-lined vessels, SGL ranks among India’s top three manufacturers in this sector and is the only supplier capable of manufacturing stainless-steel glass-lined reactors up to 10KL capacity.
The company’s operations are supported by eight manufacturing facilities located in Telangana, strategically positioned near Hyderabad’s pharmaceutical hub. SGL serves as a key supplier of GMP-compliant accessories for stainless steel glass-lined equipment. It has established itself as one of the top five specialized engineering equipment manufacturers in India by revenue in Fiscal 2024.
SGL’s business model emphasizes operational efficiency, leveraging advanced technological capabilities and engineering expertise. Its competitive edge lies in delivering large, complex projects with a wide range of equipment as a single point of contact. The company’s strong market position is reflected in its robust financials, with an EBITDA of ₹1,009.19 million for FY 2024 and a return on equity of 20.74%. SGL now seeks to expand its manufacturing capabilities through a ₹2,100 million IPO, comprising a fresh issue and an offer for sale. This move aims to strengthen its foothold in the domestic and global markets while maintaining its reputation for innovation and quality.
Shareholding Pattern
| Category | Before IPO % (pre-issue) | After IPO % (post-issue) |
|---|---|---|
| Promoters | 65.31% | 45.83% |
| Promoter’s Group | 7.17% | 22.5% |
| Public | 27.51% | 33.33% |
| Total | 100.00% | 100% |
Promoter Holding Details
Total Promoter Holding: The promoters collectively hold a significant majority stake of 65.31% in the company, with the top three promoters (Kandula Ramakrishna, Kandula Krishna Veni, and M/s S2 Engineering Services) holding over 60% of the equity shares.
| Promoter | Shares | Equity % |
|---|---|---|
| Kandula Ramakrishna | 46,934,651 | 25.44% |
| Kandula Krishna Veni | 39,580,716 | 21.45% |
| M/s S2 Engineering Services* | 24,030,000 | 13.02% |
| Nageswara Rao Kandula | 7,650,000 | 4.15% |
| M/s Standard Holdings** | 5,040,000 | 2.73% |
| Venkata Mohana Rao Katragadda | 1,800,000 | 0.98% |
| Kudaravalli Punna Rao | 500,000 | 0.27% |
| Total | 120,495,367 | 65.31% |
Pros
SGL emphasizes technological expertise and engineering capabilities, enabling it to deliver large, complex projects as a single point of contact for clients.
The company offers a wide range of specialized engineering equipment, including reactors, storage vessels, heat exchangers, and agitators, catering to diverse industrial needs.
SGL has demonstrated consistent financial growth, with an EBITDA of ₹1,009.19 million for FY 2024 and a return on equity (ROE) of 20.74%. Revenue growth of 9.26% YoY from FY 2023 to FY 2024 reflects steady business expansion.
The company operates eight manufacturing facilities near Hyderabad, a hub for pharmaceutical industries, providing logistical advantages and proximity to key clients.
SGL is one of the top three manufacturers of glass-lined reactors and storage vessels in India, with a significant presence in the pharmaceutical and chemical sectors. It is the only supplier in India capable of manufacturing stainless steel glass-lined reactors up to 10KL capacity.
Cons
None of the directors on the board have prior experience serving on the board of a listed entity, which may pose challenges in adapting to regulatory compliance and corporate governance requirements post-IPO.
The company’s revenue is heavily reliant on the pharmaceutical and chemical sectors, making it vulnerable to downturns or regulatory changes in these industries.
SGL operates in a competitive manufacturing sector where attracting and retaining skilled personnel is challenging, potentially impacting operational efficiency and innovation.
As a first-time issuer, the company may face difficulties in meeting stringent SEBI listing regulations and maintaining effective internal controls required for a publicly listed entity.
The price band and market valuation are based on various assumptions, and there is no guarantee that the stock will trade at or above the issue price after listing. Additionally, the current market prices of securities listed in previous IPOs managed by the BRLMs are below their issue prices in some cases.
Most Ask Questions?
What is the industry type of Standard Glass Lining Technology Limited?
The company is a specialized engineering equipment manufacturer for the pharmaceutical and chemical sectors
Who is the Managing Director of Standard Glass Lining Technology Limited?
Nageswara Rao Kandula
What are the dates for the IPO?
The IPO opens on January 6, 2025, and closes on January 8, 2025
Has Standard Glass Lining Technology Limited made any public or rights issue in the last 5 years?
No, the company has not made any public issue as defined under the SEBI ICDR Regulation, during the last 5 years immediately preceding the date of this Red Herring Prospectus
What is the objective of the IPO?
The objects of the Offer are as follows: Funding of capital expenditure requirements of our Company towards purchase of machinery and equipment and Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company and investment in our wholly
What is the range of acquisition cost for the selling shareholders?
The average cost of acquisition of the Equity Shares for the Selling Shareholders ranges from ₹ 1.00 to ₹ 68.90
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer. The author has no business relationship with any company whose stock is mentioned in this article.