Gold Plus Glass Industry is likely to file the draft red herring prospectus (DRHP) for its proposed IPO. The DRHP filing is likely to happen around late December or in early January, so the entire process will only start after that. Gold Plus Glass is backed by Premji Invest, the family office of Azim Premji of the Wipro Group.
While details are yet to be available, only the size is known and that Jefferies and Axis are among the investment bankers to the issue. The company will look at a combination of a fresh issue and an offer for sale, where the original promoters will look to partially monetize their holdings in the company.
The company is planning to use the fresh funds to expand its capacity to manufacture solar glass and float glass. In fact, the combined capacity of Gold Plus to manufacture solar glass and float glass currently stands at 1,250 tonnes per day. Post the expansion, this capacity will stand enhanced to 1,900 tonnes per day.
It is interesting to under the applications of float glass and solar glass. Solar glass is a high resistance glass that is used in solar panels that are used to produce electricity. It is a high-end form of glass. Float glass, on the other hand, is more of a distortion free material that finds extensive application in domestic use.
The total project cost for the expansion will be Rs.2,200 crore which will be funded partially through the fresh issue, partially through internal accruals and partially through debt. Float glass and solar glass factories typically have a gestation period of 2-3 years. It will invest in 1 solar glass line and 2 float glass lines in all.
Once the entire expansion goes on stream, Gold Plus targets annual revenues of Rs.3,000 crore. It also sees a huge export market for this glass. Currently, in the float glass and solar glass segment, there are established players like Saint Gobain, Asahi Glass and Gujarat Guardian. Amidst rising global demand, Gold Plus wants to emerge the largest Indian producer of specialized glass.
Premji Finvest had allocated Rs.400 crore for a stake in Gold Plus in the year 2018. Its current value is not known.