Gold Plus Industry to Raise Rs. 1,200 Crore via IPO

Gold Plus Glass Industry is aiming to raise an amount of around Rs. 1,200 crores through an IPO. The company is in talks to use these funds on boosting its capacity.

In addition, this Premji Invest backed company has also engaged nearly half a dozen investment bankers, including Axis Capital and Jefferies, as per reports. It may file the draft red herring prospectus by late December or early January.

Here is more about this IPO.

About the Company

Gold Plus Glass Industry Limited is the only 100% Indian owned glass company. It produces an exquisite range of superior quality glass with its high-tech manufacturing plants. The company has located its plants in two locations, namely Roorkee, Uttarakhand and Kala Amb, Himachal Pradesh. In addition, Gold Plus also includes two float lines entailing a combined capacity of around 1250 MT per day.

This company is also famous for being the only company to receive BIS Certification for manufacturing clear float glass.

A Brief Overview of Gold Plus IPO

While there is not much detail available for this IPO, only the IPO size and the investment bankers are known. Gold Plus will root for a combination of an offer for sale and a fresh issue. Moreover, original shareholders of Gold Plus will look forward to monetising their company holdings. Also, the company promoters will possibly reduce their stake through this initial public offering.

Gold Plus is further planning to utilise the proceeds from this IPO to dilate its capacity for the manufacturing of float glass and solar glass. Float glass is used for domestic purposes and is a distortion-free material. On the other hand, solar panels use solar glass.

Did you know that its combined capacity to manufacture these glasses is 1,250 tonnes a day?

Interestingly, after this expansion, this capacity will increase to 1,900 tonnes a day.

Additionally, the company is establishing three manufacturing lines in the state of Karnataka. These establishments include two float glass and one solar glass production line. These production units will take around three years to develop fully. Also, the project expenditure will fall in the range of Rs. 2,200 to Rs. 2,300 crores. Gold Plus will fund this expenditure through the fresh issue. In addition, partial funding will be done through debt and internal accruals.

As per reports, the company has finalised the plot in Karnataka, and the project will resume within the schedule. When the entire expansion develops, the company will aim for a whopping revenue of Rs. 3,000 crores.

Bottom Line

Post pandemic, there has been a rising demand for float glass in the country. Gold Plus wants to seize this opportunity by becoming the largest domestic producer of float glass. Furthermore, the road ahead for Gold Plus Glass Industry looks clear with a plan to stretch share exports via local productions.

Frequently Asked Questions

1. What are the major players in the Indian glass industry?

Gujarat Guardian Glass, Saint-Gobain and Asahi Glass are among the major players in the glass industry.

2. What is the operating revenue of Gold Plus Glass Industry?

Operating revenue of Gold Plus is over Rs. 500 crores.

3. How much did the family office of Azim Premji invest in Gold Plus in 2018?

Earlier in 2018, Premji Invest funded Rs. 400 crores in Gold Plus.