BackExxaro Tiles IPO fully subscribed within hours of opening
Exxaro Tiles IPO received 20.14 million bids against the issue size of 11.45 million shares
PremiumMumbai: Exxaro Tiles' initial public offer (IPO) was fully subscribed within a few hours of opening on Wednesday. Overall, the issue got subscribed nearly 1.76 times.
The IPO of the Gujarat-based company received 20.14 million bids against the issue size of 11.45 million shares, according to stock exchange data.
The retail investors' portion was subscribed 3.71 times, non-institutional investors subscribed 14%, while qualified institutional buyers' are yet to put in their bids. The employees portion was subscribed 6%.
Reliance Securities in an IPO note said, "The issue is valued at 35 times of FY21 earnings, which looks attractive compared to peers like Kajaria Ceramics and Somany Ceramics. However, the issue commands a premium compared to its core peer like Asian Granito. As stretched working capital cycle (WCC) has been the key reason for sharp underperformance of Asian Granito over the years, stretched WCC of Exxaro Tiles Ltd can also be a potential overhang for the stock."
The IPO price had been fixed at ₹118-120 apiece and it closes on 6 August. Earlier the firm had raised ₹23.86 crore from two anchor investors.
The initial public offering of 1.34 crore equity shares comprises a fresh issue of 1.11 crore equity shares and an offer for sale of 22.38 lakh equity shares by Dixitkumar Patel.
The offer includes a reservation of 2,68,500 equity shares for the company's employees, which will be issued at a discount of ₹12 to the final issue price.
The net proceeds from the fresh issue will be used for repaying certain borrowings, working capital requirements, and general corporate purposes.
Exxaro Tiles is engaged in manufacturing and marketing of vitrified tiles used majorly for flooring solutions.
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