Exxaro Tiles Ltd IPO

Closed

Subscription Details

  • Open Date 04 Aug
  • Close Date 06 Aug
  • Lot Size 125
  • IPO Size ₹ ₹161.09 Cr
  • IPO Price Range ₹ 118 - 120
  • Min Investment ₹ 14,750
  • Listing Exchange NSE, BSE

Exxaro Tiles Ltd IPO Timeline

Open Date
04 Aug
Close Date
06 Aug
Basis of Allotment
11 Aug
Refunds
12 Aug
Credit to Demat Account
13 Aug
Listing Date
17 Aug

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

 

 

Exxaro Tiles Ltd IPO Subscription Status

Exxaro Tiles IPO Subscription Status

Category

Subscription Status
Qualified Institutional (QIB) 1.66Times
Non-Institutional (NII) 0.97 Times
Retail Individual 21.29 Times
Employee 1.56 Times
Total 10.40  Times

 

Exxaro Tiles IPO Subscription Details (Day by Day)

Date QIB NII Retail Employee Total
August 04, 2021 17:00 1.11x 0.65x 9.29x 0.74x 4.67x
August 05, 2021 17:00 1.66x 0.97x 21.29x 1.56x 10.40x

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.

Exxaro Tiles - Financials

 

Particulars (in crore)

FY21

FY20

FY19

Revenue from operations

242.25

240.74

255.14

EBITDA

37.82

42.96

47.34

PAT

8.91

11.25

15.22


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.

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