The scrip has listed in T2T segment since its issue size is less than ₹250 crore.
The IPO was valued at 35x of FY21 earnings, which looked attractive compared to peers like Kajaria Ceramics and Somany Ceramics. However, the issue commanded a premium compared to its core peers like Asian Granito, analysts say.
"The organized tiles industry has been gaining market share post-GST implementation and midsized companies having stronger balance sheets and stable product portfolios are likely to deliver higher growth potential going ahead," said Arihant Capital in a note to its investors.
"We like the company backed by its widespread dealer network, in house manufacturing facility and wide product portfolio having 1000+ designs. Company is continuously focusing on enhancing brand value and continuing to improve operating efficiencies through technology enhancements and setting up its own gas station which will help in sustaining margin going ahead," Arihant Capital added.
The proceeds from the fresh issue will be used to pay debt, fund its working capital requirements and for general corporate purposes.
As of December 2020, the company had total secured borrowings (long term and short term) of ₹152.58 crore.
Exxaro is engaged in the manufacturing of double charged vitrified tiles (DCVT) and Glazed Vitrified Tiles (GVT). Exxaro unit 1 is based in Vadodara, Gujarat manufacturing Double Charge tiles with production capacity of 4.7 million square meter per annum.
Exxaro unit 2 located at Himmatnagar in Gujarat with vested infrastructure of 120 acres land bank at one location. The largest ever plant currently using 30 acre of land, state of the art machinery and facilities under one roof. Installed production capacity is 9.4 Million sq. m per annum
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