Global Surfaces jumps on debut

Shares of Global Surfaces were currently trading at Rs 161 at 10:23 IST on the BSE, representing a premium of 15% compared with the issue price of Rs 140.

The scrip was listed at a price of Rs 163, at a premium of 16.43% as compared to the issue price.

So far, the stock has hit a high of 171.15 and a low of 156.30. On the BSE, over 3.29 lakh shares of the company were traded in the counter so far.

The initial public offer (IPO) of Global Surfaces was subscribed 12.21 times. The issue opened for bidding on 13 March 2023 and it closed on 15 March 2023. The price band of the IPO was fixed at Rs 133-140 per share.

The IPO comprised offer for sale (OFS) of 25,50,000 equity shares (14,00,000 equity shares by Mayank Shah and 11,50,000 equity shares by Sweta Shah, both promoter shareholders) and the fresh issue of 85,20,000 equity shares.

Of the net proceeds from the fresh issue, the company proposes to utilize about Rs 90 crore towards investment in Global Surfaces FZE (a wholly owned subsidiary) for part-financing its capital expenditure requirements in relation to the setting up of manufacturing facility for engineered quartz at The Jebel Ali Free Zone, Dubai, United Arab Emirates. The balance amount will be utilized for general corporate purposes.

Post IPO, the shareholding of Mayank Shah will stand at 55.46% and that of Sweta Shah will be 5.66%.

Global Surfaces is engaged in processing natural stones and manufacturing engineered quartz. Its products find application in the flooring, wall cladding, countertops, cut-to size and other items and are used in both commercial and residential industry. The company sells its products both within and outside India.

The operating units of the company are located at Jaipur, Rajasthan, with Unit I located at Riico Industrial Area at Bagru and Unit II at Jaipur Mahindra World City SEZ. The company currently has a processing/manufacturing capacity of 4,71,164 sq m (square meters) and 5,21,643 sq m of natural stones and engineered quartz, respectively.

The company reported a net profit of Rs 13.59 crore and net sales of Rs 97.98 crore for the six months ended on 30 September 2022.

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