Glen Industries launches Rs 63 cr SME IPO: Check brokerage views, latest GMP & more

Glen Industries, known for its sustainable packaging solutions, has launched its Rs 63 crore initial public offering (IPO) today, July 8. The subscription window will close on July 10. This IPO is entirely a fresh issue of 64,96,800 equity shares, with a price band set between Rs 92 and Rs 97 per share.

Retail investors must apply for a minimum of two lots, equivalent to 2,400 shares, requiring a minimum investment of Rs 2,32,800. Small Non-Institutional Investors (sNII) and Big Non-Institutional Investors (bNII) must apply for a minimum of three lots, valued at Rs 3,49,200. A total of 1.53 lakh shares have been reserved for employees at a Rs 5 discount per share.

The primary objective of the IPO is to fund the establishment of a new manufacturing facility, with Rs 47.73 crore allocated for this purpose. The remaining funds will cover IPO expenses and general corporate needs. Glen Industries aims to significantly expand its operations, leveraging its existing clientele that includes major brands like Coca-Cola, Dabur, ITC, and Amul.

Glen Industries is positioned to capitalize on the structural shift toward sustainable packaging, supported by favourable regulatory developments such as ban on single-use plastics and rising ESG consciousness. It diversified and certified product portfolio comprising PLA and paper-based packaging is well-aligned with the compliance requirements of large QSR, beverage, and dairy players, said Arihant Capital Markets.

"Its technological capabilities, including high-speed, energy-efficient machinery and in-house customization, provide a differentiated value proposition and enable premium positioning. With strong demand visibility in end-user industries growing at double-digit CAGR and improving operating leverage," it said with a 'subscribe' rating on the issue. 

In the financial year ending March 31, 2025, Glen Industries reported a net profit of Rs 18.27 crore with a revenue of Rs 171.28 crore. For the previous financial year 2023-24, the company recorded a net profit of Rs 8.58 crore on revenue of Rs 145.22 crore. This impressive growth trajectory positions Glen Industries as a promising investment opportunity with a market capitalisation projected at Rs 233.40 crore post-IPO.

Glen Industries plans to achieve Rs 500 crore in revenue post-commissioning of its new facility by FY26, with a long-term goal of Rs 1,000 crore by 2030. The company already exports to over 19 countries, including the US, UK, and Australia.

Based on the annualized earnings of FY25 the issue is priced at a, P/E of 9.33 times, said Kunvarji Wealth. "We recommend subscribe to this IPO with medium to long term view Glen Industries manufactures and markets a wide variety of food packaging and service items. Both its top and bottom lines showed increase over the periods under review."

Higher profits for FY24 and beyond raise questions about the company's viability because it competes in a highly fragmented market. Recent financial results suggest that the issue is fully priced, it said.

The grey market premium for Glen Industries shares is currently Rs 25, indicating potential listing gains of 26 per cent for investors. The company successfully raised Rs 17.46 crore from 12 anchor investors, including prominent funds like Paradise Moon Investment Fund and HDFC Bank, by allotting 18 lakh shares at Rs 97 each.

The IPO is being managed by GYR Capital Advisors as the book-running lead manager and Kfin Technologies as the registrar. Giriraj Stock Broking is the market maker for the IPO, with 3,25,200 equity shares reserved for them. Glen Industries' shares are expected to list on the BSE SME platform on Tuesday, July 15.

Key dates for the IPO include its opening on July 8, closing on July 10, with the basis of allotment expected by July 13. The initiation of refunds and credit of shares to investors' Demat accounts is slated by July 14, with the listing on July 15. Investors should confirm their UPI mandate by the cut-off time to ensure successful participation.