IPO Details
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About Gold Plus Glass Industry Ltd IPO
The IPO of Gold Plus Glass Industry Ltd is a 100% book-built issue. It comprises a fresh issue and an offer for sale. While the fresh issue size aggregates up to ₹500 crore, the offer for sale is up to 15,667,977 equity shares.
Objectives of Gold Plus Glass Industry Ltd IPO
The company plans to utilise the IPO proceeds for:
- Repayment/prepayment of all or certain of its borrowings
- General corporate purposes
Gold Plus Glass Industry IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Aggregates up to ₹500 crore |
Offer for Sale | Up to 15,667,977 equity shares |
EPS (Basic) in ₹ for FY 23 | 28.70 |
Gold Plus Glass Industry IPO Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-Institutional Bidders | Not less than 15% of the net offer |
Retail Individual Bidders | Not less than 35% of the net offer |
Industry Outlook
Strong industrial growth, led by the manufacturing sector, saw Index of Industrial Production (“IIP”) accelerate to 4.2% year-on-year in April 2023 from 1.7% year-on-year in March, primarily led by growth in the manufacturing sector.
Demand for float glass is estimated to have grown from 1.9 MT in Fiscal 2016 to 3.8 MT in Fiscal 2023, implying a 10% CAGR. Demand for float glass is expected to rise to 4.9 MT - 5.2 MT in Fiscal 2026 from 3.8 MT in Fiscal 2023, at a CAGR of 10% - 12%.
Demand for float glass is expected to rise to 4.9 MT -5.2 MT in Fiscal 2026 from 3.8 MT in Fiscal 2023, at a CAGR of 10% -12%. Demand revival after the pandemic and faster economic growth should support demand for float glass up to Fiscal 2026 and beyond. Domestic demand is significantly greater than domestic supply, 184 translating into a growth opportunity for domestic manufacturers.
Company Information
Gold Plus Glass Industry Ltd is the second-largest float glass manufacturer in India with 22% share of manufacturing capacity for float glass as of September 30, 2023. The company is among the only two manufacturers in India with fungible production lines capable of manufacturing a comprehensive range of clear and value-added glass from a single manufacturing facility.
Gold Plus Glass Industry Competitive Strengths
Leading Player in the High-Growth Indian Glass Industry Having Significant Barriers to Entry
The company is a multi-locational glass manufacturer in India currently with three commercially operational fungible production lines, with an aggregate capacity of 2,050 TPD across two strategically located manufacturing facilities in northern and southern India.
It commenced commercial production in 2009, and has grown its brand and expansive distribution network to become one of the leading companies in India in float glass manufacturing, with a comprehensive range of clear and value-added glass.
Strategically Located Manufacturing Facilities with Large Capacity and Advanced Infrastructure
The company operates two strategically located facilities in India for manufacturing all its clear and value-added glass products. Their manufacturing facility located at Roorkee, Uttarakhand is spread over an area of 97.40 acres and operates two fungible production lines capable of producing both clear and value-added glass. Typically, production line 1 with an annual capacity of 200,750 TPA (equivalent to 550 TPD) is dedicated to manufacturing value-added glass, while production line 2 with an installed capacity of 255,500 TPA (equivalent to 700 TPD) is dedicated to manufacturing clear glass products.
Its multi-locational manufacturing presence allows it competitive advantages such as cost efficiency and enables it to leverage its existing network.
Comprehensive Product Portfolio Catering to a Wide Range of Industries
The company’s product portfolio comprises clear glass and value-added glass catering to a wide range of end-user industries including construction, automotive, and industrial sectors, with a variety of applications such as exterior and interior spaces of residential and commercial buildings, furniture, infrastructure projects, windshields, sun-roofs and white goods.
Risks of Gold Plus Glass Industry Ltd
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The company currently operates two manufacturing facilities, located at Roorkee, Uttarakhand and at Belgaum, Karnataka. Any slowdown or disruption in its manufacturing operations in any of its manufacturing facilities could have a material and adverse impact on its business operations and financial performance.
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The company does not have long-term agreements with their suppliers for raw materials, and an inability to procure the desired quality, quantity of their raw materials in a timely manner and at reasonable costs, or at all, may have a material adverse effect on their business, results of operations, financial condition, and cash flows.
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The company’s business is dependent on the sale of its products to its business associates with whom it may not have long-term arrangements. Any failure to continue its existing arrangements could negatively affect its business and results of operations.
Gold Plus Glass Industry Limited Key Financials
Here are the key financials for Gold Plus Glass Industry IPO:
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter for FY 23 | Gold Plus Glass Industry Ltd | Asahi India Glass Ltd | Borosil Renewables |
|---|---|---|---|
Total Income (in ₹ crore) | 1442.495 | 4035.150 | 913.778 |
P/E | NA | 35.93 | 117.55 |
Return on Net Worth (in %) | 19.70 | 17.59 | 7.57 |
EPS (Basic) in ₹ | 28.70 | 15.01 | 5.34 |
IPO Registrar and Book Running Lead Managers
KFin Technologies Ltd is the registrar of Gold Plus Glass Industry Ltd IPO. The book running lead managers are IIFL Securities Ltd, Kotak Mahindra Capital Company Limited, SBI Capital Markets Limited, and Axis Capital Ltd.
Business Model
The company produces a range of value-added glass products including silver glass, frosted glass, mirrors, tinted glass, solar control reflective glass for a wide range of applications. It also produces processed glass such as toughened glass, heat-strengthened glass, ceramic insulated glass, PVB laminated glass and bullet-resistant glass, among others. Its product portfolio comprises clear glass, 28 kinds of value-added glass products and 11 kinds of processed glass products.
Company Growth Trajectory
Revenue from operations of Gold Plus Glass Industry Ltd increased from ₹852.551 crore in FY 21 to ₹1421.930 crore in FY 23. Its EBITDA margin increased from 18.45% in FY 21 to 26.71% in FY 23.
Market Position
The company is India’s second-largest float glass manufacturer. It had 22% share of manufacturing capacity for float glass as of September 30, 202. As of September 30, 2023, it had 2,029 business associates, including 737 distributors, 252 processors and 1,040 retailers, across 24 states and six union territories in India.
Gold Plus Glass Industry Ltd Profit & Loss
| Parameter | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
Total Income (in ₹ crore) | 1442.495 | 1435.328 | 869.432 |
Profit/(loss) Before Tax (in ₹ crore) | 290.190 | 334.067 | 15.893 |
Profit after Tax | 217.154 | 248.667 | 57.646 |
EBITDA (in ₹ crore) | 379.861 | 462.646 | 157.316 |
EPS (Basic) in ₹ | 28.70 | 32.87 | 7.62 |
Gold Plus Glass Industry Ltd Cash Flow Statement
| Parameter | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
Profit/(loss) Before Tax (in ₹ crore) | 290.190 | 334.067 | 15.893 |
Net Cash from Operating Activities (in ₹ crore) | 135.362 | 458.029 | 130.415 |
Net Cash Used in Investing Activities (in ₹ crore) | (909.537) | (226.505) | (19.094) |
Net Cash Flow From / (Used in ) Financing Activities (in ₹ crore) | 470.797 | 63.897 | (103.456) |
Cash and Cash Equivalents at the End of the Period (in ₹ crore) | 2.612 | 305.990 | 10.569 |
How to Check Allotment Status of Gold Plus Glass Industry Ltd IPO?
You can check the allotment status of Gold Plus Glass Industry Ltd IPO through the BSE website or through the registrar’s portal. To know the status from the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down.
- Enter your application number or PAN number
- Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status
To check status through registrar’s portal:
- Visit the website of KFin Technologies Ltd
- Choose IPO allotment status from Products’ dropdown
- Click on any of the links
- Select the IPO
- Input either your application number, PAN number or Demat number
- Enter captcha and click on Submit
How To Apply for Gold Plus Glass Industry Ltd IPO?
Here are the steps to apply for Gold Plus Glass Industry Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Gold Plus Glass Industry IPO FAQs
What is the Gold Plus Glass Industry Ltd IPO?
The IPO of Gold Plus Glass Industry Ltd is a 100% book-built offer comprising a fresh issue and an offer for sale.
When will the IPO of Gold Plus Glass Industry Ltd go live?
The exact dates of the IPO are yet to be known.
From where can I read about the Gold Plus Glass Industry Ltd and its IPO?
You can read more about Gold Plus Glass Industry Ltd from the company’s draft red herring prospectus here
