In an era increasingly focused on sustainable practices, companies at the forefront of eco-friendly packaging stand out. This detailed analysis delves into the GLEN Industries Ltd. IPO, exploring its business model, financial strength, IPO specifics, and its crucial Shariah compliance status.
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Crucial Shariah Status
For investors guided by Islamic financial principles, it’s important to note that GLEN Industries Ltd. is currently categorized as Non-Shariah Compliant.
This classification primarily stems from the company’s financial ratios, specifically the interest-bearing debt to total assets, which stands at 46.45%, exceeding acceptable Shariah limits. While the company’s core business of manufacturing eco-friendly packaging products is permissible, its financial structure, including the level of interest-bearing debt, leads to this non-compliant status.
Additionally, certain screening notes reveal that some loans from related parties, such as directors and others, amounting to ₹3,325 lakhs (₹33.25 crores), are interest-free and have been deducted from total borrowings. The company also has a significant portion of illiquid assets to total assets ratio, which is 78.26%.
Therefore, for Muslim investors prioritizing strict Shariah compliance, GLEN Industries Ltd. IPO may not be considered a permissible investment avenue due to its financial structure.
About GLEN Industries Ltd.: Leading the Way in Sustainable Packaging
Incorporated in 2007, GLEN Industries Limited (GIL) is a prominent entity engaged in the manufacturing of eco-friendly food packaging and service products. The company specializes in producing thin-wall food containers and compostable straws, serving key sectors such as Hotels, Restaurants, Cafés/Catering (HoReCa), the beverage industry, and general food packaging. GLEN is committed to meeting growing demand with a new 90,000 sq. ft. manufacturing facility in Dhulagarh, equipped with advanced machines and skilled staff to enhance production and quality.
Journey & Evolution:
Under the leadership of Mr. Lalit Agrawal, the company’s journey began with ballpoint pens in 1998, strategically diversifying into thin-wall food containers in 2010. By 2019, the thin-wall food container business transitioned to GLEN Industries Limited, which also saw the company venture into manufacturing compostable straws (both PLA and paper), and later U-shaped compostable straws in 2022. Gradually becoming an industry leader and partnering with top HoReCa and beverage brands across India, GLEN utilizes cutting-edge machinery and technology sourced from Japan, Taiwan, and China, ensuring a zero human-contact production process adhering to stringent hygiene standards.
Global Reach and Product Portfolio:
GLEN Industries exports products to over 25 countries across North America, Europe, Australia, the Middle East, Africa, and the Far East, adapting to local preferences. The company is a 2-star export house awarded by the Govt. of India and is an Authorised Economic Operator Tier 2 (MSME) certified by Indian Customs.
- Thin-Wall Food Containers: Production capacity expanded from 80 MT/month in 2011 to 665 MT/month by 2022.
- Compostable Straws: Ventures into paper and PLA straws in 2019, with U-shaped straws introduced in 2022. The company produces 15.0 million pieces per day of compostable straws (including 12 million pcs per day of U-shaped straws).
Competitive Strengths:
- Experienced Promoters, management, and operating team
- Established relationships with customers
- Advanced in-house processing facilities with focus on cost competitiveness
- Robust Quality Assurance
- Strong Customization Capabilities
GLEN Industries Ltd. IPO: Key Details
The Initial Public Offering of GLEN Industries Ltd. is structured as a Bookbuilding Issue. The IPO opened on Tuesday, July 8, 2025, and is scheduled to close on Thursday, July 10, 2025. The total issue size is 64,96,800 shares, aggregating up to ₹63.02 Crores, entirely a fresh issue of capital.
- IPO Open Date: July 8, 2025 (Tuesday)
- IPO Close Date: July 10, 2025 (Thursday)
- Listing Date: Tuesday, July 15, 2025 (Tentative)
- Face Value: ₹10 per share
- Issue Price Band: ₹92 to ₹97 per share
- Lot Size: 1,200 Shares
- Total Issue Size: 64,96,800 shares (aggregating up to ₹63.02 Crores)
- Sale Type: Fresh Capital
- Reserved for Market Maker: 3,25,200 shares (aggregating up to ₹3.15 Crores) – Giriraj Stock Broking Private Limited
- Net Offered to Public: 61,71,600 shares (aggregating up to ₹59.86 Crores)
- Employee Discount: ₹5.00
- Issue Type: Bookbuilding IPO
- Listing At: BSE SME
- Share Holding Pre Issue: 1,75,64,570 shares
- Share Holding Post Issue: 2,40,61,370 shares
- Tentative Allotment: Friday, July 11, 2025
- Initiation of Refunds: Monday, July 14, 2025
- Credit of Shares to Demat: Monday, July 14, 2025
- Cut-off time for UPI mandate confirmation: 5 PM on July 10, 2025
Financial Performance: A Snapshot of GLEN Industries Ltd.
GLEN Industries Limited has demonstrated robust financial growth. The company’s revenue increased by eighteen percent (18%) and profit after tax (PAT) rose by a significant one hundred thirteen percent (113%) between the financial year ending March 31, 2024, and March 31, 2025. This consistent growth highlights efficient management and expanding market penetration.
As of March 31, 2025, the company reported total assets of ₹214.36 crores, with revenue at ₹171.28 crores. Profit After Tax stood at ₹18.27 crores, while EBITDA was ₹40.43 crores. Net Worth increased to ₹40.21 crores, and Reserves and Surplus reached ₹40.80 crores. Total Borrowing as of the same date was ₹132.83 crores. For comparison, on March 31, 2024, assets were ₹160.31 crores, revenue was ₹145.22 crores, PAT was ₹8.58 crores, EBITDA was ₹24.87 crores, Net Worth was ₹26.65 crores, Reserves and Surplus were ₹39.16 crores, and Total Borrowing was ₹88.83 crores. Looking back to March 31, 2023, assets were ₹137.07 crores, revenue was ₹119.59 crores, PAT was ₹1.49 crores, EBITDA was ₹13.89 crores, Net Worth was ₹18.07 crores, Reserves and Surplus were ₹30.67 crores, and Total Borrowing was ₹81.65 crores.
Key Performance Indicator (KPI): GLEN Industries Ltd.
Key Performance Indicators offer insights into GLEN Industries Ltd.’s efficiency and valuation, as of Monday, March 31, 2025. The market capitalization of GLEN Industries IPO is ₹233.40 Crores.
The Return on Capital Employed (ROCE) is 16.94 percent. The Debt to Equity ratio stands at 2.28. The Return on Net Worth (RoNW) is 45.43 percent. The Profit After Tax (PAT) Margin is 10.70 percent, and the EBITDA Margin is 23.60 percent. The Price to Book Value ratio is 0.22.
Objects of the Issue: Purpose of the IPO Funds
GLEN Industries proposes to utilize the Net Proceeds from the issue towards the following key objectives:
- ₹47.73 crores for setting up a new manufacturing facility at Purba Bardhaman, Jamalpur, Gram Panchayat: Jougram, Mouza – Jaugram, JL no 114, West Bengal 713166.
- The remaining funds will be allocated for general corporate purposes.
Grey Market Premium (GMP)
The Grey Market Premium (GMP) for GLEN Industries IPO on 6th July 2025 was currently ₹25, representing 25.77% over the issue price. This unofficial indicator reflects market sentiment and can fluctuate.
Conclusion and Investor Outlook
GLEN Industries Ltd. stands as a significant player in the growing eco-friendly food packaging sector, demonstrating consistent financial growth and a clear strategy for expansion through new manufacturing capabilities. While the company’s commitment to sustainable products and its strong market position are notable, potential investors should carefully consider the financial metrics, including the Shariah compliance status, as part of their comprehensive research. An informed investment decision is best made after thorough research aligned with individual investment goals and risk tolerance.
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SEBI Disclaimer: Investment in securities markets are subject to market risks, read all the related documents carefully before investing. The information provided in this article is for educational and informational purposes only and does not constitute financial advice. Investors should consult with qualified financial professionals before making any investment decisions.