Exxaro Tiles IPO Review 2021: 4 IPOs started on the same day, including Exxaro Tiles. A bull market is really on the ride in India. Exxaro Tiles IPO will hit the Indian markets from August 4th to August 6th. They aim to raise Rs. ₹161.09 crores through a public offering.
In this article, we look into important information on the Exxaro Tiles IPO and find out the possible prospects of the company.
Table of Contents
Exxaro Tiles IPO Review – About the Company
Founded in 2008, Exxaro Tiles is engaged in the manufacturing and marketing of vitrified tiles used majorly for flooring solutions. The company has a good product portfolio which consists of 1000+ designs.
They manufacture Double Charge Vitrified Tiles (double layer pigment) and Glazed Vitrified Tiles made from ceramic materials i.e. clay, quartz, and feldspar.
Headquartered in Gujarat, Exxaro Tiles has 2 manufacturing facilities at Vadodra and Talod over 1.5 lakh sq. meters. The company also has 6 display centers in 6 cities.
In addition to this, the company sells its products through a network of 2,000+ dealers. This furthers the company’s reach as the tile sector includes many companies with some holding dominant positions.
The company also supplies its products to large infrastructure projects like educational, commercial, hotels, hospitals, government, builders or developers, religious institutions, etc.
The company is also engaged in the export of tiles to various countries. These include the likes of Poland, Bosnia, the USA, etc. Currently, exports make up 14% of the company’s sales whereas the domestic market holds the rest.
In the coming year, the company aims to increase its export turnover share to 20%.
Grey Market Premium (GMP) of Exxaro Tiles IPO
The shares of Exxaro Tiles traded at around a 16% premium in the grey market before the IPO. The shares traded at a price of Rs. 140 giving them a premium of Rs. 20 over their issue price band of Rs 118-120 per share.
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Exxaro Tiles IPO Review – Key IPO Information
The promoters of the issuing company are Mr. Mukeshkumar Patel, Mr. Kirankumar Patel, Mr. Dineshbhai Patel, and Mr. Rameshbhai Patel. All of them have considerable experience in the tiles industry.
They have appointed Pantomath Capital Advisors Pvt Ltd as the lead managers to the issue. Link Intime India Pvt. Ltd. has been appointed as the registrar to the issue.
| Particulars | Details |
|---|---|
| IPO Size | ₹161.09 Cr |
| Fresh Issue | ₹134.23 Cr |
| Offer For Sale(OFS) | ₹26.86 Cr |
| Opening Date | Aug 4, 2021 |
| Closing Date | Aug 6, 2021 |
| Face Value | ₹10 per equity share |
| Price Band | ₹118 to ₹120 per equity share |
| Lot Size | 125 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date | Aug 17, 2021 |
Purpose of the Exxaro Tiles IPO
The proceeds from the IPO will be used for:
- To make repayment or prepayment of secured borrowings availed by the company.
- To meet working capital requirements.
- Meet general corporate purposes.
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In Closing
The IPO opens on 4th August and closes on 6th August 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Exxaro Tiles Ltd.
That’s all for this post. Do let us know what you think of the Exxaro Tiles IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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