Updated: August 4, 2021 12:36:32 pm
Exxaro Tiles IPO: The initial public offering (IPO) of Exxaro Tiles will open for subscription on Wednesday, August 4, 2021, at a price band of Rs 118-120 per share of the face value of Rs 10 each. The offer will be available till Friday, August 6, 2021.
The Gujarat-based company is a leading manufacturer of vitrified tiles. Through the offer, Exxaro Tiles aims to raise Rs 161.08 crore through a fresh issue of up to 1,11,86,000 equity shares and an offer-for-sale (OFS) of up to 22,38,000 equity shares by Dixitkumar Patel.
The proceeds from the fresh issue will be utilised towards repaying/prepaying of borrowings, fund its working capital requirements besides utilising it for general corporate purposes.
Investors who wish to subscribe to the Exxaro Tiles IPO can bid in a lot of 125 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 15,000 to get a single lot of Exxaro Tiles. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Monday, August 9, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
Pantomath Capital Advisors is the book running lead manager to the IPO while Link Intime India is the registrar of the issue.
Before heading into the IPO, Exxaro Tiles raised nearly Rs 23.68 crore (Rs 23,67,99,000) from two anchor investors in lieu of 19,73,325 equity shares at Rs 120 each, data from the stock exchanges showed.
The anchor investors include Quant Mutual Fund and AG Dynamic Funds.
The research team at IIFL Securities in their IPO note have recommended a “Subscribe” to the offer.
IIFL Research in its report noted, “At higher price band of Rs 120, the company is demanding a PE multiple of 26.43x on FY21 earnings, which is much lower than the industry average of ~42.76x. Considering the future growth potential of the flooring solutions market, good return ratios (FY21 ROE at 11.88 per cent), record of timely execution of projects, strong dealership network and wide product portfolio, we recommend ‘Subscribe’ to the issue with long term perspective.”
The share allotment is likely to take place on August 11, 2021, and the shares are expected to be listed on August 17, 2021, according to the timeline given in the red herring prospectus (RHP).
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