The initial public offering of Standard Glass Lining Technology Ltd. has seen strong interest in the unlisted market days ahead of its launch. The Standard Glass Lining IPO, which is set to open on Jan. 6., commanded a grey market premium of Rs 86 as of 9:29 am on Jan. 3, according to InvestorGain. If the current GMP trends are sustained till the date of listing, shares of Standard Glass Lining Technology Ltd. are likely to make market debut at Rs 226, marking a strong 61.43% premium over the upper price band. However, the trends might change when the Standard Glass Lining IPO opens for subscription.
Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.
Standard Glass Lining IPO: Price Band and Offer Size
A book-building issue, Standard Glass Lining IPO is a mix of a fresh issue of 1.5 crore shares worth Rs 210 crore and an offer for sale of 1.43 crore shares totalling Rs 200.05 crore. With the Standard Glass Lining IPO price band set at Rs 133 to Rs 140 at a face value of Rs 10 per share, the total offer size is valued at Rs 410.05 crore.
The company has reserved 50% of the net issue for qualified institutional buyers and up to 35% of the shares on offer for retail investors. Non-institutional investors can bid for up to 15% of the shares on offer for subscription.
Retail investors may bid in the Standard Glass Lining IPO with a minimum lot size of 107 shares, totalling an investment of Rs 14,980 for a single application.
Standard Glass Lining has appointed IIFL Securities Ltd and Motilal Oswal Investment Advisors Ltd. as the book-running lead managers for the issue whereas Kfin Technologies Ltd. is its registrar.
The bidding window for Standard Glass Lining Technology IPO will be open between Jan. 6 and Jan. 8 with share allotment on Jan. 9. Anchor investment round for Standard Glass Lining Technology IPO will open on Jan. 3.
Shares of Standard Glass Lining Technology Ltd. are scheduled to make their market debut on the National Stock Exchange and BSE on Jan. 13.
Use of Proceeds
In its red herring prospectus, Standard Glass Lining Technology Ltd. has proposed to use the net proceeds from the issue to settle debt, fund inorganic growth, and meet general corporate requirements. The company will also use the money in capex to purchase machinery and equipment and invest in its wholly owned material subsidiary, S2 Engineering Industry Pvt.
Standard Glass Lining Technology Ltd. Business
Standard Glass Lining Technology Ltd. specialises in manufacturing engineering equipment for the pharmaceutical and chemical sectors. Founded in 2012, the company also provides turnkey solutions, including design, engineering, manufacturing, assembly installation, and standard operation.
The Hyderabad-based company has a diversified customer base that includes end users operating in a range of sectors, including pharma, chemical, biotechnology, pain, and food and beverages.
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
. Read more on IPOs by NDTV Profit.A book-building issue, Standard Glass Lining IPO is a mix of a fresh issue of 1.5 crore shares worth Rs 210 crore and an offer for sale of 1.43 crore shares totalling Rs 200.05 crore. Read MoreIPOs, Markets
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