Vitrified Tiles Major: Price Band of Rs. 118 – Rs. 120 per equity share of face value of Rs. 10 each (“Equity Share”)
Bid/Offer Opening Date – Wednesday, August 04, 2021 and Bid/Offer Closing Date – Friday, August 06, 2021
Minimum Bid Lot is 125 Equity Shares and in multiples of 125 Equity Shares thereafter
The price earnings ratio based on diluted EPS for Fiscal 2021 for the Company at the upper end of the Price band is 26.43 as compared to the average industry peer group PE ratio of 42.76
Risks to Investors: • The one book running lead manager associated with the Offer have handled 30 public issues in the past three years, out of which 5 issues closed below the issue price on listing date. • The Price/Earnings ratio based on diluted EPS for Fiscal 2021 for the Company at the upper end of the Price band is 26.43 as compared to the average industry peer group PE ratio of 42.76. • Weighted Average Return on Net Worth for Fiscals 2021, 2020 and 2019 is 10.73%. • Average Cost of acquisition of promoters, namely Mr. Mukeshkumar Babubhai Patel is ₹ 14.88, Mr. Kirankumar Bhikhalal Patel ₹ 7.54, Mr. Dineshbhai Ramanlal Patel ₹ 4.69, Mr. RameshBhai Shivabhai Patel ₹ 23.95 respectively and for the Selling Shareholder namely Mr. Dixitkumar Patel is ₹ 5.49and the Offer Price at the upper end of the Price Band is ₹ 120 per Equity Share.
Mumbai, July 30, 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; will open the Bid/Offer period in relation to its initial public offering of Equity Shares (the “Offer”/ “IPO”) on Wednesday, August 04, 2021 and close on Friday, August 06, 2021. The price band for the Offer has been decided at Rs. 118 – Rs. 120 per Equity Share.
The Company and the Selling Shareholder may, in consultation with the book running lead manager (the “BRLM”), consider participation by Anchor Investors which shall be one Working Day prior to the Bid/Offer Opening Date, i.e. Tuesday, August 03, 2021
The Initial Public Offering of upto 13,424,000 equity shares, of face value of Rs 10 each, comprises of a fresh issue of upto 111,86,000 equity shares and an offer for sale of up to 2,238,000 equity shares by Mr. Dixitkumar Patel (“Selling Shareholder”).
The Company proposes to utilise the Net Proceeds from the Fresh Issue towards repay/prepayment of certain borrowings availed by the Company, funding its working capital requirements besides utilizing it for general corporate purposes.
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 and also has a global footprint in over 13 countries including Poland, UAE, Italy and Bosnia.
Pantomath Capital Advisors Private Limited is the appointed lead manager to the Issue.
All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the Red Herring Prospectus dated July 28, 2021 (“RHP”) filed with the Registrar of Companies, at Ahmedabad (“RoC”).
Disclaimers
EXXARO TILES LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public issue of its equity shares bearing face value of ` 10 each (“Equity Shares”) and has filed the RHP with the RoC and thereafter with SEBI and the Stock Exchanges. The RHP shall be available on the website of the SEBI at www.sebi.gov.in as well as on the websites of the Book Running Lead Manager: i.e. Pantomath Capital Advisors Private Limited at www.pantomathgroup.com. Investors should note that investment in equity shares involves a high degree of risk and for details relating to such risks, see “Risk Factors” on page 22 of the RHP. This press release is not an offer of securities for sale in Unites States or in any restricted jurisdiction. This information document/ press release may not be published or distributed in the United States or in any restricted jurisdiction. The shares of the Issuer Company have not been and will not be registered under United States Securities Act, of 1933, as amended (“U.S. Securities Act”) or any state securities laws in United States and may not be offered or sold within the United States or to, or for the account of Benefit of “U.S. persons” (as defined in Regulation S), except pursuant to an exemption from or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. State Securities laws.There will not and is not currently intended to be any public offering of securities in the United States. Accordingly, the Equity Shares are only being offered and sold outside the United States in reliance on Regulation S of the U.S Securities Act and the applicable laws of the jurisdiction where these offer and sales occur.
DISCLAIMER CLAUSE OF SECURITIES AND EXCHANGE BOARD OF INDIA(“SEBI”): SEBI only gives its observations on the offer documents and this does not constitute approval of either the Offer or the specified securities stated in the Offer Document. The investors are advised to refer to page 201 of the RHPfor the full text of the disclaimer clause of SEBI.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHPhas been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to the page 203 of the RHPfor the full text of the disclaimer clause of the BSE.
DISCLAIMER CLAUSE OF NSE (Designated Stock Exchange): It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page204 of the RHPfor the full text of the disclaimer clause of NSE.
This article is shared with Prittle Prattle News in the form of a Press Release.
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