Mumbai: Standard Glass Lining Technology Limited (SGLTL) is coming out with its Initial Public Offering (IPO) priced at Rs 133 and Rs 140 per equity share – aggregating to Rs 410 crores – which will open on January 6, 2025 and close on January 8, 2025.
The IPO is a mix of fresh issue upto Rs 210 crore and an Offer for Sale of upto 1,42,89,367 equity shares by the Promoter Selling and Promoter Group and other Selling Shareholders.
Nageshwara Rao Kandula, Managing Director, (SGLTL), said here recently that the company is one of the top five specialized engineering equipment manufacturers for the pharmaceutical and chemical sectors in India.
He said that of the proceeds from the fresh issue, Rs 10 crore will be used for funding the company’s capital expenditure requirements towards purchase of machinery and equipment, Rs 130 crore for repayment/prepayment, in full or part, of all or a portion of certain Outstanding borrowings availed by S2 Engineering Industry Private Limited from banks and financial institutions.
While Rs 30 crore would be used for investment in its wholly-owned Material Subsidiary, S2 Engineering Industry Private Limited for funding its capital expenditure requirements towards purchase of machinery and equipment, Rs 20 crore would go towards funding inorganic growth through strategic investments and/or acquisitions, and general purposes.
Replying to questions, he said the company is expecting 12% to 15% exports growth in 2025 from 5% in 2024, besides Net Profit from 11% FY2024 to 15% in FY2025 off its nine plants in Hyderabad with the 10th plant coming up soon.
While the Japanese are involved in the company’s equipment and exports, the company intends to introduce robotic technology through a Rs 100 crore CAPEX plan and also to give relevant support in the “nuclear’ sector, he added.
Anjaneyulu Pathuri, Chief Financial Officer, (SGLTL), said the company remained debt-free and the present is witnessing global companies choosing to buy its equipment rather than from China earlier.
“We propose to buy new machinery and equipment to build up additional capacity for our glass lining, stainless steel and nickel alloy equipment operations,” he said.
IIFL Capital Services Limited, and Motilal Oswal Investment Advisors Limited are the book running lead managers, and KFin Technologies Limited is the registrar of the issue.
