Exxaro Tiles Files For Rs 160 Crore IPO With SEBI
The tiles company based in Gujarat has filed its DRHP (draft red herring prospectus) with SEBI (Securities and Exchange Board of India) for issuing shares to the public. The company aims to raise nearly Rs 160 crore via its IPO (Initial Public Offering).
The offer consists of up to 13,424,000 equity shares for the public, out of which 111, 86,000 shares will be newly issued, and 2,238,000 shares will be sold via offer-for-sale. Dixitkumar Patel is the existing shareholder and will contribute solely to the offer-for-sale.
The net proceeds of the offer are to be used for repayment of borrowings, funding the working capital and for general corporate purposes, the DRHP said. The firm will use Rs 500 million for repayment purposes, the DRHP added.
Further, the company believes that listing of Equity Shares will enhance their Company’s corporate image, brand name and create a public market for their Equity Shares in India.
The Gujarat-based company is engaged in manufacturing and marketing of vitrified tiles used majorly for flooring solutions. It 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 with four of its promoters named Mukeshkumar Patel, Dineshbhai Patel, Rameshbhai Patel and Kirankumar Patel.
On the domestic front, the company has made a PAN India presence in total of 27 states based on sales and also expanded its business overseas with over 13 countries including Poland, Bosnia and UAE.
The company in FY20 reported total revenue of Rs 2,407.42 million and profit after tax stood at Rs 112.59 million. Further, the company will play along existing market players like Kajaria Ceramics, Somany Ceramics and Asian Granito India.
Pantomath Capital Advisors is the lead running manager to the issue and the shares will listed on both NSE and BSE.
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