Exxaro Tiles Pvt. Ltd. IPO will hit D-street during the first week of August. It will be the first IPO from a ceramic tiles company in a decade. They have received the necessary SEBI approvals to float their offer through which they are trying to mobilize a fund of Rs 150-200 crores. Recently, IPOs have become a favourite way for corporations to receive capital fundings. After a few months’ pause, the IPO market has gathered steam again with a long list of companies waiting to hit the market.
The company, incorporated in 2008, is an industry leader offering over 1000 products in the range of double charge vitrified tiles, glazed vitrified tiles made from ceramic materials like clay, quartz, feldspar. Their two state-of-the-art manufacturing plants have the total installed capacity of producing 1,32,00,000 sq mt per annum.
Exxaro Tiles covers the entire Indian market, has six display centres in six cities, two marketing offices in New Delhi and Morbi, and exports to Poland, Bosnia, the USA, and others.
They had the highest operating margin in the industry during 2019-2020 at 20 percent and clocked Rs 10.9 crore profit on Rs 240 crore revenue during the same period.
What are the objectives of the issue?
Proceeds from the sale of fresh shares will be used for
- Prepayment and repayment of secured borrowings
- Financing working capital requirements
- Meet general corporate expenses
Before discussing the details of the offer, let’s consider the competitive strength of Exxaro Tiles.
- A well-diversified product portfolio of more than 1000 varieties of tiles in different categories
- PAN India market with presence in 27 states, six product showrooms in six cities and two marketing offices
- A strong network of 2000 plus distributors
- Global existence in 13 plus countries outside India
- They have one of the largest manufacturing plants of glazed vitrified tiles in India
Essential details of Exxaro Tiles IPO
Here is some critical information about the IPO offer you must know before you invest.
- IPO opening date: Yet to be announced
- IPO closing date: Yet to be announced
- Face value: Rs 10 for each equity share
- Market lot: Yet to be announced
- Minimum order quantity: Yet to be announced
- Issue size: Aggregating up to Rs 200 crore
- Offer for sale: Total of 2,238,000 equity shares
- Fresh issue: 11.18 million equity shares carrying a face value of Rs 10 per share
Additional information regarding Exxaro IPO
According to sources, the company is targeting a post-issue valuation of Rs 550 crore. They are also likely to issue 2.2 million shares to institutional investors through an anchor investment route.
Exxaro tiles demonstrated strong production performance and financials over the years in the fast-expanding ceramic tiles market. The industry clocked the highest returns for investors in the last two years.
Exxaro Tiles is trying to exploit the positive market condition through its initial public offering. Amid big IPO announcements, how their offer will fair is yet to be seen, but it is safe to say that the current market condition is exuberant and charged with high liquidity.
Frequently Asked Questions
Where will Exxaro Tiles IPO be listed?
The IPO will be listed on both NSE and BSE.
What is the maximum number of shares that a retail investor can apply for?
The minimum lot size and the maximum number of shares available to retail investors are yet to be announced.
What is the issue type of Exxaro Tiles IPO?
It is a book built issue IPO.