Agarwal Toughened Glass Lists at 25% Premium, Hits High of ₹138 on NSE SME

Agarwal Toughened Glass Limited, a prominent manufacturer of toughened glass for a variety of industrial and commercial applications, made its market debut on Wednesday, 5th December 2024, on the NSE SME platform.

Agarwal Toughened Glass Listing Details

• Listing Time & Price: At the market opening, Agarwal Toughened Glass shares were listed at ₹135 on the NSE SME platform, marking a strong and positive start for the company’s public journey. 
• Comparison to Issue Price: The listing price represents a 25% premium over the IPO issue price. The IPO was priced in the range of ₹105 to ₹108, with the final issue price is fixed at ₹108 per share. 
• Percentage Change: By 10:00:30 AM IST, the stock surged to ₹138, extending its gains to 28% above the issue price.

Agarwal Toughened Glass First-Day Trading Performance

• Price Range: The stock reached a high of ₹138 and a low of ₹135 during early trading, with the VWAP (Volume Weighted Average Price) at ₹136.50. 
• Market Capitalisation: As of 10:00:30 AM IST, the company’s market capitalization stood at ₹85.67 crore. 
• Trading Volume: The traded volume was 1.12 lakh shares, with a total traded value of ₹1.52 crore.

Agarwal Toughened Glass Market Sentiment and Analysis 

• Market Reaction: Strong demand for the stock has been evident, with buying interest pushing the stock to its high, and buy orders outpacing sell orders. 
• Subscription Rate: The IPO was well-received, with a subscription rate of 8.75 times overall, with Non-Institutional Investors (NII) subscribing 14.2 times, Retail Investors at 6.5 times, and Qualified Institutional Buyers (QIB) at 3.2 times. 
• Trading Range: The stock has been trading within a band of ₹135 to ₹138 during the first few hours of listing.
   

Agarwal Toughened Glass Growth Drivers and Challenges

Expected drivers of future performance:

• Robust product demand in construction, automotive, and residential segments 
• Strategic expansion plans to cater to new markets 
• Leveraging renewable energy for sustainability 
• Strong brand reputation and established market presence in the Indian glass manufacturing industry 

Potential challenges:

• Reliance on raw material costs, which may be susceptible to price volatility 
• Competition from larger, well-established players in the glass and building materials sector 
• Regulatory compliance and environmental standards that may impact cost structures 

Agarwal Toughened Glass Utilization of IPO Proceeds 

Agarwal Toughened Glass plans to utilize the IPO funds for:

• Expansion of production capacity 
• Purchasing advanced machinery and equipment for its manufacturing unit 
• Meeting working capital needs 
• General corporate purposes 

Agarwal Toughened Glass Financial Performance

The company has shown strong growth:

• Revenue: The company reported revenue of ₹40.50 crore in FY2024, a marginal increase from ₹40.60 crore in FY2023. 
• Profit After Tax (PAT): PAT increased significantly by 795.66%, reaching ₹8.69 crore in FY2024, compared to ₹0.97 crore in FY2023. 
• Growth in the First Half of FY2025: The first half of FY2025 showed revenue growth to ₹22.55 crore with a PAT of ₹5.12 crore, reflecting the company’s healthy trajectory. 

As Agarwal Toughened Glass embarks on its listing journey, the market is expected to monitor the company’s performance closely, especially its ability to expand its product offering and sustain growth amidst market competition.