Gold Plus Glass Industry Files DRHP with SEBI to Launch IPO

Delhi based Gold Plus Glass Industry backed by Premji Invest has taken a step towards raising funds through an initial public offering (IPO). On Monday, the company submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI).

Details of Offering

The IPO includes a mix of fresh issuance of equity shares worth ₹500 crore and an offer for sale (OFS) of 1.57 crore equity shares by promoters and investors. Promoters Suresh Tyagi and Jimmy Tyagi will be selling ₹10.2 lakh equity shares each in the OFS while investors PI Opportunities Fund - I and Kotak Special Situations Fund will offloade 1.03 cr shares and 33.5 lakh shares respectively.

Promoters currently hold 70.44% equity stake on a fully diluted basis in the company, while public shareholders, including PI Opportunities Fund - I and Kotak Special Situations Fund, hold 29.56% shareholding. PIOF 1 holds 1,77,47,484 CCPS, which will be converted to equity shares prior to filing of the RHP (red herring prospectus), while KSSF holds 30,00,000 CCDs, convertible to a maximum of 1,00,08,000 equity shares.

Operational Overview

Gold Plus Glass Industry is one of India's two manufacturers with fungible production lines capable of manufacturing clear and value added glass from a single facility. As of September 2023, it operates three fungible production lines with a combined capacity of 2,050 tonnes per day (TPD) across two locations in northern and southern India. The company recently completed phase-II expansion with the solar glass line commencing trial production in December 2023 and commercial production expected to start in February 2024.

The company plans to utilize ₹400 crore of net fresh issue proceeds to repay its debt, with total outstanding borrowings standing at ₹1,389.9 crore as of September 2023. In the six months ending September, Gold Plus Glass Industry reported revenue of ₹834 crore and a profit of ₹42.5 crore, indicating a robust financial performance.

Product Portfolio

Gold Plus Glass Industry caters to a range of end use industries, including automotive, construction and industrial sectors offering a diverse portfolio comprising clear glass, 11 types of processed glass products and 28 types of value added glass products The company's products enjoy widespread applications in various industries.

In April 2022, the company had filed draft papers with SEBI for an IPO and received regulatory approval. But, the IPO was not launched at that time. IIFL Securities, Axis Capital, Kotak Mahindra Capital Company and SBI Capital Markets are the book running lead managers to the issue, indicating strong support for the offering.

Final Words

The IPO filing by Gold Plus Glass Industry represents a milestone for the company as it seeks to raise funds for expansion and debt repayment. With a diverse product portfolio robust operational setup and strong financial performance the company is poised for growth in the glass manufacturing industry.