Gold Plus Glass Files for ₹600 Crore IPO to Expand & Reduce Debt

12 Feb 2024 , 10:57 AM

Delhi-based Gold Plus Glass Industry has initiated the process to raise capital through an initial public offering, as evidenced by the preliminary papers filed with the capital markets regulator SEBI.

The IPO comprises a combination 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 intend to sell ₹10.2 Lakh equity shares each in the OFS, while investors PI Opportunities Fund – I and Kotak Special Situations Fund plan to offload 1.03 Crore shares and 33.5 lakh shares respectively.

Currently, promoters hold 70.44 percent equity stake (on a fully diluted basis) in the company, while public shareholders, including PI Opportunities Fund – I (PIOF 1) and Kotak Special Situations Fund (KSSF), own 29.56 percent shareholding.

PIOF 1 holds 1,77,47,484 CCPS (compulsory convertible preferential shares), which will be converted to equity shares prior to filing the RHP (red herring prospectus) with the Registrar of Companies (RoC). Additionally, KSSF holds 30,00,000 CCDs (compulsorily convertible debentures), convertible to a maximum of 1,00,08,000 equity shares.

Ahead of the RHP filing, the company may contemplate a further issuance of equity shares worth ₹100 Crore through pre-IPO placement.

Gold Plus Glass stands out as one of the only two manufacturers in India with fungible production lines capable of manufacturing clear and value-added glass from a single manufacturing facility.

Operating three fungible production lines with an aggregate capacity of 2,050 tonnes per day (TPD) across two locations in northern India at Roorkee, Uttarakhand, and in southern India at Belgaum, Karnataka, the company recently completed phase-II of its planned expansion. The solar glass line, which commenced trial production in December 2023, is expected to begin commercial production in February 2024.

Of the net fresh issue proceeds amounting to ₹400 Crore, Gold Plus Glass intends to utilize ₹400 Crore for repaying its outstanding borrowings, which stood at ₹1,389.9 Crore as of September 2023.

IIFL Capital Services, Axis Capital, Kotak Mahindra Capital Company, and SBI Capital Markets have been appointed as the book running lead managers to the issue.