IPO of Exxaro Tiles Limited listed on Bourses
Chennai, August 16, 2021: Gujarat based Exxaro Tiles Limited, one of the leading manufacturer of vitrified tiles in India having one of the highest operating profit margins in the organized ceramic industry; listed at BSE and NSE at Rs. 126 per share, a 5% per cent premium over its issue price of Rs. 120. The shares of the company at day end closed at Rs. 132.25 per share on BSE and Rs. 132.30 per share on NSE. The initial public offering was offered at a lower price band of Rs. 118 per share and higher price band of Rs. 120.
As per BSE, the total quantity traded stood at 7.41 lac shares with a delivery quantity percentage of 100%. Quantity traded and delivery percentage at NSE was approx. 46.33 lacs shares. Total Turnover (BSE+NSE) on Day 1 stood at Rs 69.29 crores.
The Market Capitalization of the Company post today’s closing price stood at Rs. 591.70 crore as per BSE and Rs. 591.92 crore as per NSE.
The Offer was a complete offer for sale (“Offer for Sale”) at the upper price band of Rs. 120 per share, received bids of 25,84,73,750 shares against the offered 1,14,50,675 equity shares. The portion reserved for retail investors was subscribed 39.88 times. While the Qualified Institutional Buyer category was subscribed 17.67 times, the Non-Institutional Investor category was subscribed 5.36 times and Employee Reserved category was subscribed 2.53 times.
Key brokerage houses like Arihant Capital, SMC Global, Canara Bank Securities, HEM Securities have given recommendations of “Subscribe” to the issue for long term perspective while highlighting the key strengths of the company. Exxaro has two state-of-the-art manufacturing facilities which are located at Padra and Talod respectively in Gujarat with a combined installed production capacity of 132,00,000 sq. mt. p.a. Notably, Talod Unit is one of the single largest plant for manufacturing glazed vitrified tiles under one roof in India.
It is focused on R&D efforts by developing products which are innovative and in line with the trends. R&D efforts leads to 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.
Exxaro’s integrated model enables developing insights across the entire value chain right from product design, process development, and manufacturing to marketing. This helps the Company build brand faster and stronger, besides clocking high operating margins. Company’s Key Growth Drivers are strengthening brand value, Focus on spreading dealer network, Increase sales by enhancing manufacturing capacities and continues improvement in the operating efficiencies through technology enhancements and setting up own gas station.
Company Information
Promoted by Mukeshkumar Patel, Dineshbhai Patel, Rameshbhai Patel and Kirankumar Patel, Exxaro Tiles started off as a partnership firm in 2007-2008 to manufacturer frit and thereafter diversified and is now primarily engaged in the business of manufacturing and marketing of vitrified tiles used majorly for flooring solutions catering to residential and commercial segments. It currently has a 2000+ dealer network across 27 states. The Company operates two state-of-the-art manufacturing facilities which are located at Padra and Talod respectively in Gujarat. The Company has PAN India presence (27 states based on sales made during Fiscal 2020) and also has a global footprint in over 13 countries including Poland, UAE, Italy and Bosnia.
