Under the IPO, the company will issue 111,86,000 equity shares and one of its shareholders will sell 2,238,000 shares.
The company proposes to utilize net proceeds from the fresh issue towards payment of borrowings and funding its working capital requirements besides utilizing it for general corporate purposes.
Exxaro Tiles and its shareholders plan to raise Rs 161 crore from investors at a price band of Rs 118-120. Those who wish to apply for the IPO can do so in a lot of 125 shares, meaning a maximum application size of Rs 15,000. The issue is priced at a PE multiple of 16.43 as of FY21 earnings.
Exxaro Tiles started off as a partnership firm in 2007-2008 to manufacture frit and thereafter diversified. It 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 claims to have a 2,000+ dealer network across 27 states.
The company operates two manufacturing facilities which are located at Padra and Talod in Gujarat. Pantomath Capital Advisors Private is the appointed lead manager to the issue.
