## Standard Glass Lining Technology Ltd IPO: A Comprehensive Analysis

The Standard Glass Lining Technology Ltd (SGLTL) IPO, a ₹410.05 crore Mainline IPO, concluded its subscription period from January 6th to 8th, 2025. The IPO comprised a fresh issue of ₹210 crore and an offer for sale (OFS) of ₹200.05 crore. Shares were priced within a band of ₹133-₹140, with a minimum lot of 107 shares costing ₹14,980.

### Company Overview and Financials:

Established in September 2012, SGLTL specializes in manufacturing technical equipment for the pharmaceutical and chemical sectors. Their offerings encompass design, manufacturing, installation, and commissioning of solutions, including glass-lined, stainless steel, and nickel-alloy equipment, and PTFE-lined piping. SGLTL boasts a diverse clientele, including 30 of the approximately 80 pharmaceutical and chemical companies listed in the NSE 500 Index (as of June 30, 2024). The company has demonstrated strong financial performance, with a 10% revenue increase and a 12% rise in profit after tax (PAT) between FY23 and FY24. SGLTL’s revenue grew significantly from ₹240.2 crore in FY22 to ₹543.7 crore in FY24, exhibiting a Compound Annual Growth Rate (CAGR) of 50.5%, while PAT increased from ₹25.1 crore to ₹60.0 crore (CAGR of 55%). This growth is attributed to strategic partnerships and acquisitions.

### IPO Performance and Grey Market Premium (GMP):

The SGLTL IPO was oversubscribed by a massive 182.57 times. The Qualified Institutional Buyers (QIBs) category was oversubscribed 331.60 times, Non-Institutional Investors (NIIs) 267.99 times, and Retail Investors 63.99 times. The Grey Market Premium (GMP), while fluctuating, settled around ₹91 per share on the final day of bidding. This suggested a potential listing price of around ₹231, a 65% premium over the upper price band. It’s crucial to remember that GMP is unofficial and not indicative of actual listing price.

### Investment Analysis and Conclusion:

At the upper price band of ₹140, SGLTL’s price-to-earnings (P/E) ratio is approximately 38.5x (annualized FY25). This valuation, considering the company’s strong financial performance, growth prospects within the expanding pharmaceutical and chemical sectors, and diverse product portfolio, suggests a potentially attractive long-term investment opportunity. However, potential investors should conduct their own thorough due diligence before investing.