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Exxaro Tiles IPO ends with modest subscription

Capital Market 

The issue received bids for 25.96 crore shares as against 1.14 crore shares on offer.

The initial public offer of vitrified tile manufacturer Exxaro Tiles received bids for 25.96 crore shares as against 1.14 crore shares on offer, according to stock exchange data. The issue was subscribed 22.68 times.

The qualified institutional buyers (QIBs) category was subscribed 17.67 times. The retail individual investors (RIIs) category was subscribed 40.10 times. The non-institutional investors (NIIs) category was subscribed 5.36 times.

The issue opened for bidding on Wednesday (4 August 2021) and it will close Friday (6 August 2021). The price band of the IPO was fixed at Rs 118-120 per share. The issue comprised of a fresh issue of up to 1,11,86,000 equity shares and an offer for sale of up to 22,38,000 equity 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.

Ahead of the IPO, Exxaro Tiles on 3 August 2021 finalized allocation of 19,73,325 equity shares to anchor investors, at Rs 120 per equity share, aggregating to Rs 23.68 crore.

Exxaro Tiles is engaged in manufacturing and marketing of vitrified tiles used majorly for flooring solutions. They commenced business as a partnership firm in 2007-08 as a manufacturer of frit, which is one of the raw materials used in manufacturing of tiles and have over the years, diversified, expanded and evolved into a manufacturer for vitrified tiles.

Their business operations are broadly divided into two product categories: Double Charge Vitrified Tiles (Double charge vitrified tiles are tiles that are fed through a press which prints the pattern with a double layer of pigment, 3 to 4 mm thicker than other types of tiles) and Glazed Vitrified Tiles (Glazed vitrified tiles are flat slabs manufactured from ceramic materials such as clay, feldspar and quartz and other additives and fired at high temperatures to ensure high strength and low water absorption). The company is promoted by Mukeshkumar Patel (CEO & Managing Director), Dineshbhai Patel, Rameshbhai Patel and Kirankumar Patel.

The company reported a net profit of Rs 152.23 crore and revenue from operations of Rs 2,551.45 crore in the twelve months ended 31 March 2021.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, August 09 2021. 14:02 IST