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Background

Standard Glass Lining Technology Limited is a leading engineering equipment manufacturer in India, specializing in serving pharmaceutical and chemical industries. It offers a wide range of products, including glass-lined, stainless steel, and PTFE-lined equipment, along with end-to-end solutions like design, installation, and turnkey project management. With eight manufacturing facilities in Hyderabad and a strong global presence, the company caters to diverse industries, deriving over 75% of its revenue from pharmaceuticals and maintaining strategic partnerships to drive innovation and growth.

Details of the Issue:

The public issue consists of Offer for Sale aggregating up to Rs 200 Cr and fresh issue up to Rs 210 Cr. Net proceeds shall be utilized towards:

* Funding of capex for purchase of machinery and equipment – 40 Cr

* Repayment of borrowings – 130 Cr

* Funding inorganic growth through strategic investments – 20 Cr

Investment Rationale:

* Leading Engineering Equipment Manufacturer

* Innovative and Customized Product Offerings

* Strategically Located Manufacturing Facilities with Advanced Technology

* Strong Relationships with Marquee Clients Across Sectors

* Consistent Track Record of Profitable Growth

Valuation and Recommendation: -

Standard Glass Lining Technology Limited is a leading player in engineering equipment manufacturing. With its market position, technical expertise, and reliable customer base, the company offers good potential for investors. With a 50% revenue CAGR (FY22-24) surpassing the peer average of 19% and an EBITDA margin of 17% exceeding the industry average, its ROCE (17%) and ROE (15%) remain competitive, It’s P/E ratio of 47 appears reasonable compared to the industry average of 58. Considering its high growth potential, efficient operations, and reasonable pricing, we recommend a Subscribe rating for this IPO.

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SEBI Registration number is INH0000017660