Gold Plus Glass Industry files DRHP for IPO
Gold Plus Glass Industry Ltd has filed draft red herring prospectus with SEBI to raise funds through an initial public offering. The IPO will be a combination of a fresh issue and an offer for sale (OFS). It will include a fresh issue of Rs.300 crore and an offer-for-sale (OFS) of up to 1,28,26,224 (1.28 crore) equity shares. These shares will be offered by the promoters of the company and the early investors in the company as per the DRHP filing.
Let us look at the OFS portion first. The two promoters of Gold Plus Glass Industry, Suresh Tyagi and Jimmy Tyagi, will offer up to 10.20 lakh shares each. In addition, early PE investors, PI Opportunities Fund-I, will sell the largest chunk of 1.079 crore equity shares in the OFS.
The OFS does is neither equity dilutive nor EPS dilutive. However, it improves the floating stock of the company post the IPO and enables liquidity post listing.
The company also plans to use the fresh issue proceeds of Rs.300 crore towards funding debt repayments and prepayments as well as for smoothing its working capital cycles. Some fresh funds will also be set aside for general corporate purposes.
The fresh issue portion of the IPO will be capital dilutive and it will also be EPS dilutive. However, the fresh issue component will result in fresh funds coming into the company.
Gold Plus Glass Industry is one of the leading float glass makers in India, which is a lighter version compared to the tougher reinforced glasses. Gold Plus Glass has a 16% share of manufacturing capacity in fiscal 2021 out of the total float glass industry.
The products made by Gold Plus Glass cater to a completely wide range of end-use industries which include automotive, construction and industrial sectors; in a range of applications.
In terms of application, float glass finds application in the building industry and in commercial glazing applications. In buildings, float glass is used for smaller windows in domestic housing, while larger windows use toughened glasses.
The commercial glazing segment is increasingly using float glass in commercial applications as it gives the impression of being outside with the benefits of being protected from the elements inside.
The issue will be lead managed by IIFL Securities, Axis Capital, Jefferies India and SBI Capital Markets acting as the book running lead managers (BRLMs) to the issue. The IPO will be listed on the NSE and the BSE.
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