Tag: Exxaro Tiles

Exxaro Tiles shares list at 5% premium over issue price

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Vitrified tiles maker Exxaro Tiles’ shares made a lukewarm debut on Dalal Street on Monday. On BSE, the Exxaro Tiles stock opened at Rs 126 apiece, indicating a premium of 5 percent over its issue price of Rs 120. On NSE as well, Exxaro shares started trading at Rs 126 apiece, marking a premium of 5 percent.

At 11:50 am, the Exxaro stock traded at Rs 127.50 apiece on BSE, up 6.5 from the issue price, having risen to as high as Rs 132.30 earlier in the day.

The Rs 161-crore initial public offer (IPO) of Exxaro Tiles was subscribed nearly 23 times at the end of the three-day bidding process. The IPO received 25.97 crore bids against the issue size of 1.15 crore shares.

Also read: Is the euphoria around IPOs fading?

The portion reserved for qualified institutional buyers was subscribed 13.74 times and that for non-institutional investors 2.01 times. The quota reserved for retail investors saw a 17.64 times subscription.

Also read: Exxaro IPO subscribed 23 times on final day

Shares under the Exxaro IPO were offered in the price band of Rs 118-120. The public offer comprised fresh issuance of shares worth Rs 134 crore and an offer for sale of shares worth Rs 27 crore.

Also read: IPOs that may hit Street this month

The company’s management plans to use the proceeds from the IPO to pay its existing long-term debt of around Rs 50 crore, and for working capital requirements and general corporate purposes.

Exxaro Tiles is into the manufacturing and marketing of vitrified tiles. Exxaro’s business operations are broadly divided into two categories: double charged vitrified tiles and glazed vitrified tiles. The company has two manufacturing plants, one each at Talod and Padra in Gujarat, with a combined installed production capacity of 1.32 crore square metres per annum.

Exxaro has a pan-India network of more than 2,000 registered dealers. It supplies its products to more than 12 countries.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Exxaro Tiles IPO subscribed 23 times on final day

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Vitrified tiles maker Exxaro Tiles’ initial public offer (IPO) was subscribed nearly 23 times on Friday, the last day of the three-day bidding process.

By the end of the day, the IPO had received 25.97 crore bids against the issue size of 1.15 crore shares, marking a subscription of 22.68 times, data from NSE showed.

The portion reserved for qualified institutional buyers was subscribed 13.74 times and that for non-institutional investors 2.01 times. The quota reserved for retail investors saw a 17.64 times subscription.

Gujarat-based Exxaro Tiles’ IPO was subscribed 10.29 times on Thursday, the second day of bidding, and nearly five times on the previous day.  It was fully subscribed within hours on Wednesday.

The IPO to raise Rs 161 crore had opened on Wednesday. Shares were offered in a price band of Rs 118-120.

Also read: IPOs in August 2021: Devyani, Krsnaa, Windlas and other IPOs that may hit Street this month

The IPO comprised fresh issuance of shares worth Rs 134 crore and an offer for sale of shares worth Rs 27 crore. At the upper end of the price band, bidding for one lot of 125 shares cost investors Rs 15,000.

Also read: Exxaro Tiles IPO opens for subscription. Should you consider it?

The company’s management plans to use the proceeds from the IPO to pay its existing long-term debt of around Rs 50 crore, and for working capital requirements and general corporate purposes.

Also read: Devyani International, Windlas Biotech IPOs open for subscription

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Exxaro Tiles IPO opens for subscription. Should you consider it?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Vitrified tiles maker Exxaro Tiles plans to raise Rs 161 crore through an initial public offer (IPO) that opened for subscription on Wednesday. The Gujarat-based company has set a price band of Rs 118-120 apiece for the public offer.

On Tuesday, Exxaro Tiles raised Rs 23.68 crore from two anchor investors, ahead of the IPO, allocating 19,73,325 shares at Rs 120 apiece.

The IPO comprises fresh issuance of shares worth Rs 134 crore and an offer for sale of shares worth Rs 27 crore. At the upper end of the price band, bidding for one lot of 125 shares will cost investors Rs 15,000.

The IPO will close for subscription on August 6. Three other companies — Windlas Biotech, Devyani International and Krsnaa Diagnostics — are also launching their IPOs today.

Also read: IPOs in August 2021: Devyani, Krsnaa, Windlas and other IPOs that may hit Street this month

Here’s what brokerages say about Exxaro Tiles’ IPO:

Angel Broking

In terms of valuations, the post-issue FY2021 PE works out to be 35.2x at the upper end of the issue price band, which is low compared to peers Somany Ceramics (43.7x) and Kajaria Ceramics (52.7x), said Amarjeet Maurya, AVP – Mid Caps, Angel Broking.

Exxaro has had better revenue growth compared to its peers over the FY18-21 period, said Maurya, who recommends ‘subscribing’ to the issue saying its valuation is reasonable.

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Religare Broking

The brokerage has a positive view on the company from a long-term perspective.

“Along with having a strong product portfolio and large dealer network, the company’s focus on innovation and quality products aided to gain a higher market share. Going forward, the company’s strategy is to enhance brand visibility, strengthen product portfolio, expand dealer network in India as well as globally,” Religare Broking said in a note.

Besides, Exxaro plans to set up a gas station for internal gas consumption and optimise its power and fuel costs (which account for 29-30 percent of its
revenue). This will help the company reduce external dependency as
well as improve operating margins, according to the brokerage.

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SMC Institutional Equities

The brokerage has a ‘subscribe’ rating on the IPO. The organised tiles industry has been gaining market share post GSP implementation and mid-sized companies have a higher growth potential going ahead, it said in a note.

Choice Broking

The brokerage has assigned an ‘avoid’ rating to the IPO.

“At Rs 120, the company is demanding a PE valuation of 35.3x (to its restated FY21 EPS of Rs 3.4). Considering the RoE of 5.6 percent, the demanded valuation seems to be highly stretched. There are already much better established peers in the listed space, which an investor can consider for investment,” Choice said in a note.

The brokerage has highlighted the following risks and concerns:

–Subdued economic activities, especially in the real estate sector
–Unfavorable movements in raw material prices
–Working capital-intensive business
–Rise in interest rates
–Competition

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Exxaro Tiles IPO to open on August 4. Here’s all you need to know

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gujarat-based Exxaro Tiles’ initial public offer (IPO) worth Rs 161 crore will open for subscription on Wednesday, August 4, and close on Friday, August 6. Under the IPO, Exxaro Tiles shares will be offered in the price band of Rs 118-120 apiece. Exxaro is a manufacturer of vitrified tiles used majorly for flooring solutions.

While 40 percent of the issue is reserved for retail investors, the quota for qualified institutional investors and non-institutional investors is set at 25 percent and 35 percent respectively.

Besides, the IPOs of three other companies, Windlas Biotech, Devyani International and Krsnaa Diagnostics, will open for subscription on the same day.

Also read: IPOs in August 2021: Devyani, Krsnaa, Windlas and other IPOs that may hit Street this month

Here are other important details to know about the Exxaro Tiles IPO:

IPO dates

The Exxaro Tiles IPO will open for subscription for three days, starting Wednesday, till August 6.

IPO size

The IPO comprises 1.34 crore shares, including fresh issuance worth Rs 134 crore and an offer for sale worth Rs 27 crore.

Lot size

Shares will be traded in lots of 125, and in multiples thereof. At the upper end of the price band, bidding for one lot of shares will cost investors Rs 15,000.

Company profile

Incorporated in 2008, Exxaro Tiles is into the manufacturing and marketing of vitrified tiles. Exxaro’s business operations are broadly divided into two categories: double charged vitrified tiles and glazed vitrified tiles. The company has two manufacturing plants, one each at Talod and Padra, with a combined installed production capacity of 1.32 crore square metres per annum.

It has a pan-India network of more than 2,000 registered dealers. The company also supplies its products to more than 12 countries including Poland, the UAE, Italy and Bosnia.

Listing

After the allotment, Exxaro Tiles shares will be listed on stock exchanges BSE and NSE.

Utilisation of funds

Exxaro plans to utilise the proceeds from the IPO towards repayment of debt, and for working capital requirements and general corporate purposes. The issue constitutes 30 percent of the company’s post-issue paid-up capital.

Book running lead manager

Pantomath Capital Advisors is the book running lead manager, and Link Intime India is the registrar.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Exxaro Tiles IPO price band fixed at Rs 118-120; issue to open on Aug 4

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Exxaro Tiles has fixed the price band for its Rs 161.08-crore initial public offering (IPO) at Rs 118-120 per share. The 32nd IPO to be launched so far this year will open for subscription on August 4 and will close on August 6.

Anchor investors’ book, if any, is expected to open for a day on August 3, a day before the offer opens for retail investors.

Exxaro Tiles’ IPO comprises a fresh issue of 1,11,86,000 equity shares and an offer for sale (OFS) of 22,38,000 equity shares by selling shareholder Dixitkumar Patel. At the higher price band, the total offer size comes to Rs 161.08 crore.

The company has reserved up to 2,68,500 equity shares for its employees.

The market lot size for the issue is 125 shares and a retail-individual investor can apply for up to 13 lots.

Pantomath Capital Advisors Private is the lead manager to the issue.

Meanwhile, Devyani International and Windlas Biotech will also be launching their IPOs on August 4.

Exxaro Tiles will utilise the net proceeds from the fresh issue for repaying debt (Rs 50 crore), and working capital requirements (Rs 45 crore).

Promoters Mukeshkumar Patel, Kirankumar Patel, Dineshbhai Patel, and Rameshbhai Patel — hold 55.19 percent equity stake in the company.

Exxaro Tiles is a Gujarat-based manufacturer of vitrified tiles. The company manufactures Double Charge Vitrified Tiles and Glazed Vitrified Tiles made from ceramic materials i.e. clay, quartz, and feldspar.

The company supplies its products to large infrastructure projects i.e. residential, educational, commercial, hotels, hospitals, government, builders or developers, religious institutions, etc.

It also exports tiles to different countries across the globe i.e. Poland, Bosnia, the USA, and others. For FY2021, the company’s revenue from exports contributed 13.88 percent to total revenue.

The company has two manufacturing facilities in Padra and Talod with an installed production capacity of 1,32,00,000 sq mt per annum.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow