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, received bids of 11,79,44,500 shares against the offered 1,14,50,675 equity shares, as per the 5:00 pm data available on the bourses.
The portion reserved for retail investors was subscribed 21.11 times. While the Qualified Institutional Buyer category was subscribed 1.65 times, the Non-Institutional Investor category was subscribed 0.93 times and Employee Reserved category was subscribed 1.56 times.
The Initial Public Offering of comprises of a fresh issue of up to 111,86,000 equity shares and an offer for sale of up to 2,238,000 equity shares by Selling Shareholders.
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.
Indian Ceramic Industry has been growing exponentially during last couple of years as the industry changes gears including continuous shift from un-organized to organized, shift in product focus with increasing share of Glazed Vitrified Tiles (GVT) and Polished Glazed Vitrified Tiles (PGVT), growing global penetration of large slabs, implementation of best in class technology and innovation to manufacture products suitable for global markets. Transformational changes such as GST, RERA, eway bill and the like have paved the way for moving the industry from un-organized to organize. This assumes significant importance as the industry has been dominated by un-organized segment.
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.
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