The popularity of SME IPOs is increasing day by day in our country, so it is important for investors to understand whether Agarwal Toughened Glass India Limited SME IPO is suitable for their investment goals or not.
This SME IPO is an important step for Agarwal Toughened Glass India Limited so that the company can increase its growth and presence in India as well as international markets.
About the Company
History and Company Background:
Agarwal Toughened Glass India Limited was established in 2009 in Jaipur, Rajasthan (India), to promote high-performance reflective architectural glass. This is a high-technology company with more than 25 years of experience in the areas of special glass, advanced materials, and state-of-the-art technologies.
Agarwal Toughened Glass India Limited Products:
Agarwal Toughened Glass India Limited manufactures toughened glass, which includes products such as laminated, frosted, and bulletproof glass. This company also fulfills the requirements of construction, automotive, and electronics industries.
Key milestones and achievements:
Business Process:
The following flowchart explains the business process of Agarwal Toughened Glass India.
Details of the SME IPO
IPO Size and Structure:
Date | Nov 28, 2024-Dec 02, 2024 |
Price Range | ₹105 – 108 |
Minimum Quantity | 1200 shares |
Minimum Amount | ₹126000 |
Symbol | AGARWALTUF |
SME IPO Amount:
Agarwal Toughened Glass India Limited SME IPO aims to raise a total of ₹ 62.64 crores.
Purpose of the IPO:
Agarwal Toughened Glass India Limited is raising money through this SME IPO to expand its production, to buy new machinery, to repay its debt, and to meet working capital needs.
Key Dates and Timelines:
Event | Tentative Date |
---|---|
Opening Date | Nov 28, 2024 |
Closing Date | Dec 02, 2024 |
Basis of Allotment | Dec 03, 2024 |
Initiation of Refunds | Dec 03, 2024 |
Credit of Shares | Dec 04, 2024 |
Listing Date | Dec 05, 2024 |
Based on these important dates, you can plan your investment and allotment process for the IPO accurately.
Stock Exchange Listing:
The Agarwal Toughened Glass IPO will be listed on the NSE SME (National Stock Exchange Small and Medium Enterprises) platform.
Glass Industry Market Overview
Industry Analysis:
India’s glass industry is growing rapidly due to increasing demand in sectors such as construction, automotive, and solar energy.
Glass Industry Market Size:
This sector is worth around ₹25,000 crore and is expected to grow at a CAGR of 7-8% in the next 5 years.
Industry Competitors:
Agarwal Toughened Glass India Limited competes with many domestic and foreign players. Organized players include companies like Saint-Gobain, Borosil Ltd, Asahi India Glass Ltd, Sejal Glass Ltd, and Triveni Glass Ltd.
Market Position:
Over the past few years, Agarwal Toughened Glass India Limited has established itself as a reputable, high-quality, and trustworthy brand, for which we have won numerous accolades. As a result, Agarwal Toughened Glass India Limited is now one of the top companies in the Indian glass market.
The key components in their plan to tackle the tough competition are customer relations, reputation, employee talent, market coverage, quality, cost, distribution, technical capability, etc. Their unique selling point is that they provide value at the end of the supply chain.
Financial and Valuation Analysis
Financial Metrics of Agarwal Toughened Glass India Limited:
- Revenue Growth: In FY24, the company reported revenue of ₹23.49 crores, showing a slight decrease of 0.25% from ₹40.50 crores in FY23
- Profit Margins: The company demonstrated significant profitability growth, with PAT (Profit After Tax) rising by an impressive 795.66% from FY23 to FY24
- Cash Flow: Positive operating cash flow has been reported, supporting its growth.
- P/E Ratio: The company’s P/E ratio is 14.77x, significantly below the industry average of 110.70x, indicating an undervaluation based on earnings
Valuation Analysis:
Based on a peer comparison with competitors like Saint-Gobain, Asahi India Glass Ltd, and Borosil Ltd, Agarwal Toughened Glass India Ltd’s IPO pricing appears undervalued.
Promoters Shareholding Pattern
Promoter | % of Shares |
---|---|
Anita Agarwal | 14.42 |
Mahesh Kumar Agarwal | 28.79 |
Uma Shankar Agarwal | 3.73 |
Sharda Agarwal | 37.05 |
Subscription Status:
As of today, 29th November 2024, Agarwal Toughened Glass India Limited’s SME IPO subscription status is 0.72 times.
You can check the IPO subscription status by visiting the NSE or BSE website. Here, you will find information on how many times this IPO has been subscribed.
Agarwal Toughened Glass India Limited SME IPO GMP
The latest GMP (Gray Market Premium) for the Agarwal Toughened Glass India Limited SME IPO is ₹ 9. With a price band of ₹ 108, the estimated listing price for the Agarwal Toughened Glass India Limited SME IPO is ₹ 117 (issue price + today’s GMP). The expected profit/loss percentage per share is 8.33%.
How to Check Allotment?
To check your IPO allotment, you can visit the following registrar’s website of the company and enter your PAN number, application number, or Demat account number. You can also check the allotment status on the NSE and BSE websites.
You can use the following links to check the status:
Final Verdict
Agarwal Toughened Glass India Limited’s SME IPO presents a balanced opportunity for investors. The company’s strong financial growth, robust business model, and strategic market position make it an attractive option for those seeking exposure to high-growth small and medium enterprises. Here are the key considerations:
Why You Should Consider This IPO:
- Strong Growth Potential: Consistent revenue growth and a promising industry outlook.
- Use of Funds: Proceeds aimed at strategic objectives such as expansion, debt repayment, and innovation, indicating a clear growth roadmap.
- Experienced Management: A leadership team with a proven track record and industry expertise.
- Attractive Valuation: Compared to peers, the IPO is priced fairly, offering a chance for significant value appreciation.
Risks to Keep in Mind:
- Industry Risks: Regulatory changes and market volatility may impact performance.
- SME Segment Risks: Lower liquidity in SME stocks can lead to higher volatility post-listing.
Who Should Invest?
- Retail Investors looking for long-term capital appreciation in growing companies.
- Experienced Investors with a higher risk tolerance, as SME IPOs can be volatile.
- Investors willing to hold shares for medium to long-term periods to realize the full growth potential.
Final Recommendation:
Investors should carefully assess their risk tolerance, financial goals, and the IPO details before making a decision. Consulting a registered financial advisor is essential for personalized guidance.
FAQs
What is an SME IPO, and how is it different from a regular IPO?
An SME IPO is a public offering specifically designed for small and medium enterprises. It typically involves smaller issue sizes and is listed on platforms like NSE Emerge or BSE SME. Compared to regular IPOs, SME IPOs require investors to buy shares in larger lots and may involve higher risks due to lower liquidity and less-established businesses
What are the benefits of investing in SME IPOs?
Investing in SME IPOs allows investors to:
- Gain early access to high-growth companies.
- Diversify their portfolios with small-cap stocks.
- Potentially earn high returns if the company succeeds in scaling operations.
What are the risks involved in SME IPOs?
The risks include:
- Higher volatility due to lower trading volumes.
- Uncertain growth trajectories for smaller companies.
- Greater vulnerability to market and economic downturns.
Are SME IPOs riskier than regular IPOs?
Yes, SME IPOs generally carry higher risks compared to regular IPOs due to the smaller size of the companies, less established market positions, and limited financial history. These companies may be more susceptible to market fluctuations and economic challenges.
Are SME IPOs suitable for beginners?
SME IPOs are typically more volatile and carry higher risks, making them better suited for experienced investors or those with a higher risk tolerance. Beginners should approach with caution and consider consulting a financial advisor.
Can I buy SME IPO shares after the listing day?
Yes, you can buy SME IPO shares after the listing, just like any other publicly traded stock, by placing an order through your broker or online trading platform. However, liquidity may be lower than for stocks listed on major exchanges, and prices can be more volatile.
What is the Grey Market Premium (GMP), and why is it important?
GMP reflects the premium at which IPO shares trade in the unofficial grey market before listing. It indicates market sentiment and potential listing performance but is not a guarantee of returns.