Exxaro Tiles IPO Sees Healthy Demand From Investors
- ByStartupStory | August 6, 2021
Vitrified tiles manufacturer Exxaro Tiles IPO sees healthy demand from investors as their stocks are subscribed 13.44 times on August 6, the final day of bidding. The subscription data available on exchanges showed that the offer has received bids for 15.38 crore equity shares against IPO size of 1.14 crore equity shares, garnering bids worth Rs 1,845.6 crore. It is a small IPO in size amongst others – Devyani International, Windlas Biotech and Krsnaa Diagnostics that are closing for subscription today. The portion set aside for qualified institutional buyers was subscribed 1.66 times and that of non-institutional investors had seen a 1.75 times subscription. Retail investors remained at the forefront in bidding as their portion was subscribed 27.21 times, while employees saw subscription of 1.67 times. Exxaro Tiles is engaged in the manufacturing and marketing of vitrified tiles with a market share of less than 1 percent, and is planning to raise Rs 161.08 crore through its public issue at higher end of price band of Rs 118-120 per share.
The company operates in a highly competitive field with various objects. It has also established presence across premium products such as double charge tiles and glazed vitrified tiles of the ceramic industry. Its Retail and institutional sales volume mix 85 percent and 15 percent respectively in FY21. “Exxaro Tiles’ profitability margin is better than its other peers in the industry. Its debt-to-equity (D/E) stood at 1.12x in FY2021 and post issue, D/E would stand at around 0.87x. The company would trade at P/E of 26.43x for FY21 which is attractive as compared to its peer competitors,” said Canara Bank Securities which recommended a ‘subscribe’ for listing gains.
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