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

IPO Review: With three significant initial public offerings available on the mainboard—D-Street Standard Glass Lining Technology IPO, Quadrant Future Tek IPO, and Capital Infra Trust InvIT—all of them witnessing strong interest during their first and second days, analysts delve into the details of each to assist investors in making informed decisions about which one to select.

Standard Glass Lining Technology’s initial public offering (IPO) is valued at ₹410.05 crore, comprising a fresh issue of equity shares totaling ₹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).

The Quadrant Future Tek IPO is a ₹290-crore initial public offering that consists solely of a fresh issue, with no component for sale.

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

Here’s what experts say – 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.

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. The 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 favorable price point to achieve a better risk-to-reward ratio.

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.

Arun Kejriwal, founder of Kejriwal Research and Investment Services, mentioned that these three firms include a fixed income instrument, which is Capital Infra Trust InvIT. Thus, individuals considering this company are unlikely to evaluate the other two (Quadrant Future Tek IPO and Standard Glass Lining IPO) and vice versa. When comparing Capital Infra, one would look at Bharat Highways Invit, Embassy REIT, and similar entities. Essentially, Quadrant Future Tek IPO and Standard Glass Lining IPO are not comparable to Capital Infra Trust InvIT.

Focusing on the Standard Glass Lining IPO, it operates in the engineering and precision sector, whereas Quadrant Future Tek specializes 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.

It’s crucial to clarify the distinctions here. The main competitors of Standard Glass include GMM Pfaudler Ltd and HLE Glascoat Ltd, both of which are publicly listed. The unique aspect of Standard Glass Lining is their 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. Consequently, the Japanese company contributes superior technology to the collaboration. Additionally, they have partnered with another firm for manufacturing chillers, which are employed in chemical processes requiring temperature control, giving them a competitive advantage.

Comparing the two issues, Quadrant Future Tek has received a substantial order of ₹980 crore that they are yet to fulfill. However, prior to this, the company’s revenue was relatively minor. While the railway order is significant, execution and delivery will be crucial before making any premature conclusions. 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.

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.