Global Surfaces IPO Review: Global Surfaces Limited is coming up with its Initial Public Offering. The IPO will open for subscription on March 13th, 2023, and close on March 15th, 2023. In this article, we will look at the Global Surfaces IPO Review 2023 and analyze its strengths and weaknesses. Keep reading to find out!
About The Company
Incorporated in 1991, the company indulged in the business of processing natural stones and the creation of engineered quartz. The key products of the business include marbles, granites, and Quartzite which have different variations of products under them.
The products manufactured by the company have a wide range of applications which includes flooring, wall cladding, countertops, cut-to-size, and other items. The company sells its products domestically and internationally and both by both commercial and residential industries.
The company has units that are used for processing and manufacturing of its products situated at RIICO Industrial Area, Jaipur, Rajasthan, and the other at Mahindra World City SEZ, Jaipur, Rajasthan
Services Provided By The Company:
Global Surfaces Limited has a diversified products portfolio which includes:
● Marble: Fantasy Brown, River Blue, Marine Black, Calcutta Veneto, Ocean Blue.
● Granite: Azul Nuevo, Bianco Star, Blue Dunes, Blue Flower, Crema Petra, Dona Brown, Mona Lisa, Monte Cristo, Shadow Blue, Sparkle Grey, Sparkle Blue.
● Quartzite: Aurora, Kalmasa, Prismatic, and Stratum series.
Global Surfaces IPO Review – Financial Highlights
If we look at the financials of Global Surfaces Limited we find out that their assets have grown from Rs.128.72 crores in March 2020 to Rs.280.2 crores in September 2022.
Their revenues also follow a similar trend, it has grown from Rs.165.78 crore in March 2020 to Rs. 198.35 crore in March 2022. As of September 2022, the company’s revenue stands at Rs 99.24 crores for FY22-23.
Their profits have grown from Rs.20.8 crores in March 2020 to Rs.35.7 crores in March 2022. As of September 2022, the company’s profits stand at Rs.14.8 crores for FY22-23.
Balance Sheet Of The Company
(Source: RHP of the company)
Profit And Loss Statement Of The Company
(Source: RHP of the company)
(Source: RHP of the company)
Strengths Of The Company
- The company has maintained consistent growth year-on-year despite being impacted by COVID-19.
- The company manufactures a wide range of products with diverse designs
- The company has a well-established foothold in international markets and sold products across the USA, Canada, Australia, and the Middle East
- The company maintains a quality control process where they inspect the quality of raw materials and the finished product which ensures the manufacture of quality products and also reduces losses.
- The company constantly thrives on developing good quality and cost-efficient engineered quartz through its in-house R&D facility at Mahindra World City SEZ, Jaipur, Rajasthan.
Weaknesses Of The Company
- The company relies on a few of its customers for a major part of its revenues and it also doesn’t have a long-term agreement with its customers. Any failure to retain customers can have a huge impact on the revenues of the company.
- The company does not have any long-term agreements with its suppliers and any hindrance in procuring the desired quantity or quality of raw materials at a desired cost can impact its profitability.
- Underutilization of the firm’s production capacities can have an impact on the revenues of the business.
- The business always requires the company to have sufficient cash flows as it is a capital-intensive business. Any disruption in the cash flows can have an impact on the operations of the business.
- The Company, its directors, and its promoters have legal proceedings on them and any negative outcome of such proceedings can impact the reputation of the business, which in turn will have an impact on the company’s performance.
Global Surfaces IPO Review – GMP
The shares of Global Surfaces Limited traded at a premium of 28.57% in the grey market on March 9th, 2023. The shares tarded at Rs 180. This gives it a premium of Rs 40 per share over the cap price of Rs 140.
Key IPO Information
|IPO Size||11,070,000 shares|
|Fresh Issue||8,520,000 shares|
|Offer for Sale (OFS)||2,550,000 shares|
|Opening date||March 13, 2023|
|Closing date||March 15, 2023|
|Face Value||₹10 per share|
|Price Band||₹133 to ₹140 per share|
|Lot Size||100 Shares|
|Minimum Lot Size||1(100)|
|Maximum Lot Size||14(1400)|
|Listing Date||March 23, 2023|
Promoters: Mayank Shah and Sweta Shah
Book Running Lead Manager: Unistone Capital Private Limited
Registrar to the Offer: Bigshare Services Private Limited
The Objective Of The Issue
The net proceeds from this issue will be utilized for the following purposes:
- The proceeds from the fresh issue will be utilized by the company for financing capital expenditure of Global Surfaces FZE, which is a wholly-owned subsidiary of the company. The capital expenditure is in relation to the cost of setting up a manufacturing facility for engineered quartz at The Jebel Ali Free Zone, Dubai.
- General corporate purposes.
In this article, we looked at the details of the Global Surfaces IPO Review 2023. Analysts remain divided on the IPO and its potential gains. This is a good opportunity for investors to look into the company and analyze its strengths and weaknesses. That’s it for this post.
Are you applying for the IPO? Let us know in the comments below.
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