Exxaro Tiles IPO: Can the Company Sustain Intense Competition?
The D-street is bustling with IPOs and as many as four are opening for subscription on 4th August. In this article, let’s discuss the IPO of Exxaro Tiles, a tilemaker known for its widespread presence, innovative range of tiles redefining beauty and style, and putting in commendable efforts on the R&D front. Stay with us to read vital information that can help you evaluate the Exxaro Tiles IPO.
About Exxaro Tiles
Incorporated in 2008, Gujarat-based Exxaro Tiles started out as a partnership firm that manufactured frit, a raw material used in making tiles. After years of diversifying and expanding, the company has evolved to manufacture and market vitrified tiles, which are majorly used for flooring solutions.
The company’s product portfolio consists of over 1,000 designs of tiles that are available in six sizes. Of these Topaz Series, High Gloss Series, and Galaxy Series are some of the well-established ones. Apart from manufacturing, Exxaro Tiles also gets wall tiles outsourced to supply them to their clients.
Manufacturing and other facilities
Exxaro Tiles has two state-of-the-art manufacturing facilities in Padra and Talod, Gujarat with a combined installed production capacity of 1,32,00,000 sq. mt. per annum. Their glazed vitrified tiles manufacturing plant is one of the largest in the country. Exxaro also has six display centres in six cities and two marketing offices located in Morbi and Delhi.
Product categories of Exxaro Tiles
Exxaro’s products are broadly divided into two categories:
- Double charge vitrified tiles: these are long-wearing tiles that find application in heavy traffic commercial projects
- Glazed vitrified tiles: these are flat slabs manufactured using ceramic materials such as clay, feldspar, and quartz and are used in residences, corporate offices, and hotels due to their aesthetic appeal and high durability
Clients of Exxaro Tiles
As of Mar 2021, Exxaro had a large dealer network of over 2,000 registered dealers and a PAN India presence in 24 states and union territories. The company supplies their products to large infrastructure projects including residential, commercial, educational, hospitals, hotels, builders or developers, government, and religious institutions.
Exxaro Tiles also has a strong international presence, exporting to 12 countries including Poland, Bosnia, and the USA. For FY 2021, their revenue from exports contributed 13.88% to the total revenue.
- Mr. Mukeshkumar Patel
- Mr. Kirankumar Patel
- Mr. Dineshbhai Patel
- Mr. Rameshbhai Patel
Exxaro Tiles IPO details
- The Rs 161.09 cr-worth IPO is slated to open on 4thAug and close on 6thAug
- While the face value of each equity share is Rs 10, the IPO price band is set at Rs 118 to Rs 120 apiece
- The minimum bid lot is 125 shares and the maximum lots permitted for applying is up to 13 lots
- The company is looking to list on both BSE and NSE. The likely date of the issue is 17thAug 2021
- Of the IPO, up to Rs 134.23 cr will be a fresh issue and up to Rs 26.86 cr will be offer for sale (OFS)
Book running and lead managers of the issue
Pantomath Capital Advisors is the book running lead manager to the issue and Link Intime India Private Limited is the registrar.
Category-wise reservation of the IPO
- Up to 25% for qualified institutional buyers
- 35% for non-institutional buyers and
- Up to 40% for retail investors
Continue to read the valuation of Exxaro Tiles IPO, changes in the promoter holding, financials, strengths, strategies, and risks of Exxaro Tiles here.
