IPO Review: Standard Glass Lining IPO vs Quadrant Future Tek IPO vs Capital Infra IPO. Which one should you apply for? | Stock Market News

IPO Review: With three significant initial public offerings available on the mainboard — Standard Glass Lining Technology IPO, Quadrant Future Tek IPO, and Capital Infra Trust InvIT — and all of them witnessing strong interest, investors are left wondering which one should they bet on.

Analysts delve into the details of each issue to assist investors in making informed decisions about which IPO they should select.

Standard Glass Lining Technology’s IPO is valued at ₹410.05 crore, comprising a fresh issue of equity shares, totalling ₹210 crore and an Offer For Sale (OFS) of up to 1.43 crore shares from promoters and other selling shareholders, as stated in the Red Herring Prospectus (RHP).

Quadrant Future Tek IPO is a ₹290-crore initial public offering that is entirely a fresh share sale, with no OFS component. 

Capital Infra Trust IPO includes a fresh issue of up to ₹1,077 crore, along with an OFS of up to ₹501 crore by the sponsor-selling unitholder, Gawar Construction, bringing the total offering to ₹1,578 crore.

Expert Take: Standard Glass Lining IPO vs Quadrant Future Tek IPO vs Capital Infra Trust IPO

Mohit Gulati, the CIO and managing partner of ITI Growth Opportunities Fund, believes that Quadrant Future Tek is emerging as a compelling investment in the railway technology sector, with robust financial performance and significant market potential. The KAVACH project, aimed at enhancing passenger safety and reliability, could be a game-changer for the company’s revenue streams, justifying its premium valuation at a P/E ratio of around 42x for FY27, Gulati said.

On the other hand, Capital Infra Trust’s IPO stands out as an opportunity to engage in India’s infrastructure growth through a quasi-fixed income product, yet potential investors should be cautious, according to the analyst as recent revenue decline, along with construction risks and the trust’s limited operational history, warrant careful consideration. It may be wise to wait for a more favourable price point to achieve a better risk-to-reward ratio, Gulati advised.

Lastly, Standard Glass Lining Technology has shown strong financial growth and received a positive reception at its launch, suggesting an optimistic outlook. “However, investors must remain vigilant about the risks associated with its smaller scale compared to peers and the competitive environment. For those looking to invest, a 12 to 18-month horizon could be beneficial,” said he.

Arun Kejriwal, founder of Kejriwal Research and Investment Services, noted that Capital Infra Trust InvIT, having a fixed-income instrument component, is likely to appeal to different investors than Quadrant Future Tek IPO or Standard Glass Lining IPO. He emphasised that Capital Infra is more comparable to Bharat Highways InvIT and Embassy REIT, not to the other two.

Kejriwal explained that engineering and precision sector, whereas Quadrant Future Tek specialises in developing software-driven systems for the Indian railway. 

“Their work for the Indian railway includes a security system named KAVACH, which prevents accidents between two locomotives by ensuring they don’t come closer than a predetermined distance. Regardless of fault, this system aims to avert accidents. Therefore, a comparison between these companies is also unwarranted,” he added.

Standard Glass IPO’s main competitors include GMM Pfaudler and HLE Glascoat, both of which are publicly listed. The unique aspect of Standard Glass Lining is its partnership with a Japanese firm that holds a 10% equity stake, allowing them access to a special type of glass, which enhances the quality of equipment manufacturing, according to the market analyst.

Additionally, they have partnered with another firm for manufacturing chillers, which are employed in chemical processes requiring temperature control, giving them a competitive advantage, he said.

Comparing the two issues, Quadrant Future Tek has received a substantial order of ₹980 crore that they are yet to fulfil. However, before this, the company’s revenue was relatively minor, observed Kejriwal. While the railway order is significant, execution and delivery will be crucial before making any premature conclusions, he said, adding that it remains necessary to monitor performance post-listing and to observe results over one or two quarters. Given the technology they possess, Standard Glass IPO is expected to perform well and should position them favourably, he added.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.