Exxaro Tiles Ltd IPO

Current

IPO Synopsis

Exxaro Tiles IPO Synopsis

Exxaro Tiles is launching its Initial Public Offer on August 4th and the issue closes on August 6th. Exxaro Tiles IPO issue size if ₹161.09 Cr that comprises of a fresh issue of ₹134.23 Cr. (11,186,000 Equity Shares of face value of ₹10 each) and Offer for sale of 2,238,000 Eq Shares (aggregating up to ₹26.86 Cr). The Price band for Exxaro Tiles IPO is ₹118 to ₹120, lot size of 125 shares. 

Investors can subscribe to Exxaro Tiles IPO from August 4th at a minimum investment of Rs. 14,750. 

Exxaro Tiles Shareholding Pattern

% Shareholding

Pre- IPO(%)

Post-IPO(%)

Promoter & Promoter Group

56.09

42.07

Public

43.91

57.93

 

 

About Exxaro Tiles Ltd

Exxaro Tiles Limited is engaged in manufacturing and marketing of vitrified tiles used majorly for flooring solutions. The company commenced business as a partnership firm in 2007-08 as a manufacturer of frit, which is one of the raw materials used in manufacturing of tiles and have over the years, diversified, expanded and evolved into a manufacturer for vitrified tiles. The company’s business operations are broadly divided into two product categories i.e.

(1) Double Charge Vitrified Tiles - tiles that are fed through a press which prints the pattern with a double layer of pigment, 3 to 4 mm thicker than other types of tiles. This process does not permit complex patterns but results in a long-wearing tile surface, suitable for heavy traffic commercial projects, and

(2) Glazed Vitrified Tiles - Glazed vitrified tiles are flat slabs manufactured from ceramic materials such as clay, feldspar and quartz and other additives and fired at high temperatures to ensure high strength and low water absorption.

Key Points

Some of the competitive strengths are as follows

Widespread sales and dealers network:

As on date of the RHP, Exxaro Tiles has over 2,000 registered dealers and domestically the company has PAN India presence (24 states/ union territories based on sales made during Fiscal 2021). The company has maintained long term relationships with most of their dealers. The company’s dealer relationships are led primarily by its ability to develop new and trending designs, meet stringent quality and technical specifications and provide better pricing and delivery terms than that of competitors. As a result, the company has a history of high customer retention and has been manufacturing products for some of its customers since commencement of production at Unit I. 

Wide product portfolio comprising 1000+ designs:
As on March 31, 2021, Exxaro Tiles’ product portfolio consists of 1000+ designs which are categorized into various series and available over 6 sizes. The company engages in continuous product development and introduction of new designs to keep up with the trends and meet the customer requirements. Some of the key product development highlights include: (1) 3D Effect in Double Charge Vitrified Tiles (2) Replica of Natural Stones in Double Charge Vitrified Tiles, and (3) High transparent glaze in weight method for glazed vitrified tiles. Focus on innovation and quality are the key strengths for the success of the company over the years.

Risk Factors:

Some of the risk factors are as follows

•    Volatility in the supply and pricing of raw materials and stores & spares may have an adverse effect on business. 
•    The shortage or non-availability of power, fuel and water facilities may adversely affect vitrified tiles manufacturing process and have an adverse impact on results of operations and financial condition.
•    The business is dependent on the performance of the real estate, infrastructure and other related industries where the company’s products are utilized. Any uncertainty regarding these can have an impact on the demand and business.

Conclusion:
Considering the future growth potential of the flooring solutions market, record of timely execution of projects, strong dealership network and wide product portfolio, Exxaro Tiles Limited is an attractive investment option. However, if planning to invest in the Exxaro Tiles Limited IPO one should go through the company financials and gather huge information and plan their move accordingly.

How to Apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

    Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

    Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

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Frequently Asked Questions

An Initial Public Offering OR IPO is the process of issuing stock for sale for the first time by a private corporation to the public. A company can issue its stock for sale for the first time to raise money by issuing either debt or equity. In case, the company chooses the equity route, the first such offering of equity shares to the public via listing of the shares in the stock markets is called an IPO.

 

This is one of the processes that has to do with the pricing of the IPO. An IPO can be made either through book building method, the fixed price method or a combination of both.

While in book building the price at which securities will be offered/allotted is not known in advance to the investor (investor is aware of an indicative price range only), in the fixed price process price at which the securities are offered/allotted is known in advance to the investor.

When it comes to an IPO, there are 4 types of investors who can bid, as per SEBI guidelines. They are –

  1. Qualified institutional investors (QIIs)
  2. Anchor investors
  3. Retail investors and
  4. High net-worth individuals (HNIs)/Non-institutional investors (NII).

 

IPO subscription period is the period of time during which investors can promise to purchase shares of a security to be issued as initial public offering (IPO).

Check: IPO Application Process

For details about the new IPO application process, click here.

To apply in an IPO with 5paisa:

  • Login to the 5paisa website or mobile trading app
  • Go to the Current IPOs section
  • Select the IPO you wish to apply for
  • Enter IPO details like price, quantity (lots) and your UPI ID
  • Check details and Confirm
  • Approve the UPI notification received on your phone (in BHIM App or your net banking app)

A Red Herring Prospectus, or offer document, is filed by a company to SEBI. This document is very useful to as it provides detailed information about the company’s business operations, financials, promoters and the company’s objective for raising funds.

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