Standard Glass IPO shares to list on Jan 13; analysts recommend buy, sell or hold strategy

Standard Glass shares to list on NSE, BSE on Jan 13.

Standard Glass IPO shares are set to list on BSE and the National Stock Exchange (NSE) on January 13, following a huge demand of 183 times to its Rs 410-crore issue in the primary market. The analysts expect a mega listing with a premium exceeding 60 percent over its issue price.

The shares of the Standard Glass Lining Technology issue with a price band of Rs 133-140 per share were allotted to the successful bidders on January 9 on the official website of the registrar, KFin Technologies Limited.

Prathamesh Masdekar, Research Analyst at StoxBox noted that the company is set for an impressive market debut on January 13 with expectations of a 64 percent premium over its upper price band.

It is one of the few companies in India offering end-to-end customized solutions in the specialized engineering equipment used in the pharma and chemical sectors. It's comprehensive product portfolio consists of over 65 products & offerings across the pharma and chemical industries and is also developing 15 more products.

The company is further looking to expand capacity and is venturing into the 150 MM thickness segment, providing a gateway to sectors like Oil & Gas, Edible oil, Heavy engineering, etc. The company intends to continue strengthening its existing product portfolio in line with its capabilities and further diversify into products with increased growth and profitability prospects.

Masdekar added, "The company is targeting 20% of revenue from exports by 2026 v/s present 0.5% contribution. We thus recommend that investors allotted shares consider holding their positions from a medium to long-term perspective."

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Narendra Solanki, Head of Fundamental Research - Investment Services at Anand Rathi Shares, added at the upper price band company is valuing at P/E of 43.01x, with an EV/EBITDA of 30.08x and market cap of Rs 27,928 million post issue of equity shares and return on net worth of 20.74 percent. "We suggest investors to HOLD the issue as a Long term view on IPO according to their risk appetite."

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