Sejal Architectural Limited – IPO

Business of Sejal Architectural Glass Limited

Sejal Architectural Glass is in the business of processing glass with facilities for insulating, toughened, laminated and decorative glasses. The company’s plant is at Dadar and it commenced operations in 2000-01. The company currently processes and markets glass and as a step towards backward integration now plans to set up a manufacturing facility for float glass.

Some of the well known customers of Sejal Architectural Glass are Reliance, L&T and the glass has been used in Bangalore International Airport, Inorbit Mall and Mumbai airport among others. The company also has a trading division which trades in various in house brands as well as other manufacturer products and deals in tiles, sanitary ware, mirrors, glass etc.

The demand drivers for float glass are the real estate sector, malls and shopping complexes, hospitality industry, SEZs and automobile sector. One can see that the company operates in a sector which feeds other growth sectors which are growing right now due to the rising GDP and the fast growing economy. 

Financials of Sejal Architectural Glass

The sales of the company have risen from Rs.1717.07 lakhs in the year 2003 to Rs. 3935.68 lakhs in the year ended 31st March 2007. The profit after tax for the same period has risen from Rs. 15.07 lakhs to Rs.276.33 lakhs. Growth in both the topline and the bottom line has been steady throughout the last five years.

The EPS for the year 2006-07 was Rs.3.11, Rs.2.88 the year before that and Rs. 3.33 in the year 2004-05.

Objects of the Issue

The IPO of Sejal Architectural Glass looks at raising money for backward integration by way of setting a manufacturing plant for float glass. The installed capacity for this plant would be 200,750 MT and would be set up at Bharuch district in Gujarat.


The company is in an attractive sector with a decent financial record albeit one which is not long. If the issue is priced moderately and the promoters leave something on the table for the investors this could be a good company to look at for the longer term.

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