Gujarat-based Exocaro Tiles Limited(Formerly Known as Ricasil Ceramic Industries Pvt. Ltd.) is the leading manufacturer of vitrified tiles in India. The company was envisioned to be continuous to provide low carbon-high quality enterprises, delivering customized tiling solutions. Exxaro Tiles IPO will hit the market on 04 August 2021.
Table of Contents
About
Exocaro Tiles started and diversified as a manufacturer firm and then as a partnership firm in 2007-2008 and is now primarily involved in the manufacture of vitrified tiles and Is engaged in the business of marketing.
Flooring catering solutions for residential and commercial areas. It currently has a 2000+ dealer network in 27 states. It has a combined manufacturing capacity of 13.2 million square meters.
Exocaro has one of the highest operating profit margins in the ceramic industry, with EBITA close to 20% as of the current financial year.
At Exxaro tiles, they believes that “growth is never a chance, it is the result of passion and perseverance” With these founding ethics we have achieved astonishing growth.
Products
Their business is organised into two product categories:
- Vitrified Tiles with Double Charge are run through a press that prints the design with a double coating of pigment that is 3 to 4 mm thicker than other types of tiles. This method does not allow for intricate designs, but it does provide a long-lasting tile surface that is ideal for high-traffic commercial applications.
- Glazed vitrified tiles are flat slabs made from ceramic ingredients including clay, feldspar, and quartz, as well as additional additions, and fired at high temperatures to assure great strength and low water absorption. Glaze ingredients are applied to these tiles before they are fired.
Vision
Consistent with Exxaro tiles vision and values, the group strives to strengthen its existence in business with successful verticals. Since inception, honesty and integrity have always been essential elements for business sustainability at Exxaro tiles.
It is a professionally run enterprise committed to total customer satisfaction and passionate about conquering new horizons. For us, quality is not an act, it is a habit that has made Exxaro tiles a criterion in every area of its presence.
Clients
- Amul,
- Patanjali
- Lodha
- Welspun
- Baps
- Rajhas
- Samsung
- Puravankara
Issue
Exxora Tiles headquartered in Gujarat has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 160 Crores on 15 March 2021.
The Offer includes a fresh issue of 1,11,86,000 equity shares and an offer for sale (OFS) for 2,238,000 equity shares of face value of 10 per share, by the promoters.
They got approval from Securities and Exchange Board of India(SEBI) on 29 June, 2021 to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Dec-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 376.35 | 384.54 | 356.84 | 368.89 | |
| Total Revenue | 171.19 | 243.96 | 244.00 | 221.24 | |
| Profit After Tax | 10.85 | 11.25 | 8.91 | 9.14 | |
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 3.36 | 3.36 | 3 |
| Financial Year 2019 | 2.66 | 2.66 | 2 |
| Financial Year 2018 | 2.78 | 2.78 | 1 |
| Weighted Average | 3.03 | 3.03 | |
| (9 months) Dec. 31, 2020 | 3.23 | 3.23 | – |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives
Basis of The offer
- Production plants that are state-of-the-art and automation, with a major focus on design and reliability
- A large network of salespeople and dealers.
- A large product range with over 1000 designs.
- Professional leadership and a committed workforce.
Exxaro Tiles IPO Peer Comparison
| S. No. | Company Name | PE |
| 1 | Kajaria Ceramics Limited | 59.96 |
| 2 | Asian Granito India Limited | 13.58 |
| 3 | Somany Ceramics Limited | 124.65 |
| 4 | Orient Bell Limited | 44.46 |
| 5 | Murudeshwar Ceramics Limited | 88.00 |
Exxaro Tiles IPO Details
| IPO Opening Date | 04 August 2021 |
| IPO Closing Date | 06 August 2021 |
| Issue Type | Book Builting |
| Face Value | 10 per share |
| IPO Price | 118 to 120 per equity share |
| Market Lot | 120 |
| Min Order Quantity | 120 |
| Listing At | BSE, NSE |
| Issue Size | 160 Cr |
| Fresh Issue | 111,86,000 Shares |
| Offer for Sale | 2,238,000 Share |
Exxaro Tiles IPO Tentative Date
The Exxaro Tiles IPO opening date is 04 August 2021, and the closing date is 06 August 2021. The issue may list on 16 August 2021.
| IPO Open Date | 04 August 2021 |
| IPO Close Date | 06 August 2021 |
| Basis of Allotment Date | 11 August 2021 |
| Initiation of Refunds | 12 August 2021 |
| Credit of Shares to Demat Account | 13 August 2021 |
| IPO Listing Date | 16 August 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 45 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 40 | Minimum level of 1 lot, based on availability, for every shareholder. |
Exxaro Tiles IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Exxaro Tiles IPO.
Exxaro Tiles IPO GMP
Exxaro Tiles IPO Grey Market Premium is as follows and you can check GMP of other IPOs as well from links given below:
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| 15 August 2021 | 4 | 4300 | 500 |
| 14 August 2021 | 2.5 | 2500 | 300 |
| 13 August 2021 | 1 | 1900 | 250 |
| 12 August 2021 | 0 | 0 | 0 |
| 11 August 2021 | 2 | 850 | 100 |
| 10 August 2021 | 6 | 1300 | 150 |
| 09 August 2021 | 9 | 1500 | 200 |
| 08 August 2021 | 9 | 1200 | 150 |
| 07 August 2021 | 13 | 1800 | 250 |
| 06 August 2021 | 21 | 5500 | 600 |
| 05 August 2021 | 19 | 4500 | 500 |
| 04 August 2021 | 12 | 3200 | 350 |
| 03 August 2021 | 20 | 2500 | 300 |
| 02 August 2021 | 18 | 1750 | 200 |
| 01 August 2021 | 25 | 500 | 100 |
| 31 July 2021 | 57 | 1100 | 150 |
| 30 July 2021 | 60 | ||
| 29 July 2021 | No Trade | No Trade | No Trade |
Check Out The GMP Of other IPOs
Exxaro Tiles IPO Review
You can avoid this company’s IPO as Company has many issues including loan default. It is also going to list the trade to trade segment as it’s a small size IPO. If you know their business properly & ability to take risks then you can apply for long term only.
Exxora Tiles IPO Risk
- Uncertainty in the supply and cost of their raw materials, as well as their stores and parts, might hurt their business.
- Power, fuel, and water shortages or non-availability may have an impact on their vitrified tile production process.
- Their manufacturing activities are key to their operations, and any stoppage of their production plants may have a negative impact on their operations.
- The inability to grow or manage their distribution network for business purposes, or the loss of any key dealer, might have a negative impact on their operations.
- Clients’ orders may be delayed, changed, or cancelled, which might have a negative impact on their business.
Other Threats
- Their business might suffer if we don’t keep track of their inventory.
- For sustained expansion, their company requires a considerable amount of operating cash. The inability to manage their working capital needs might have a negative impact on the business.
- With their dealers and customers, they have not signed into any long-term or binding commitments. Their firm may be impacted if their clients decide not to get their necessities from them.
- Their company may suffer if they are unable to respond to shifting industry standards and customer trends.
- Any increase in interest rates will have a negative impact on its operating performance and expose their company to interest rate risk.
Exxora Tiles IPO Brokerage views
- Yes Securities : Avoid
- Choice Brokering: Avoid
- Axis Securities: Avoid
- IIFL Securities: Avoid
- Trade swift: Avoid
- Anand Rathi : Avoid
- ICICI Securities: Avoid
Exxora Tiles IPO Subscription
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| 04 August 2021 | 1 | 1.11 | 0.65 | 9.29 | 0.00 | 4.67 |
| 05 August 2021 | 2 | 1.66 | 0.97 | 21.29 | 0.00 | 10.29 |
| 06 August 2021 | 3 | 17.67 | 5.36 | 40.10 | 2.53 | 22.68 |
Promoters
- Mukeshkumar Patel
- Dineshbhai Patel
- Rameshbhai Patel
- Kirankumar Patel
Promoter Holding
| Pre Issue Share Holding | 55.16% |
| Post Issue Share Holding |
Exxora Tiles IPO Prospectus
Contact Details
At & Po.: Mahelav, Taluka: Talod,
District.: Sabarkantha – 383 305, Gujarat, India
Tel : +02772-350555
Email: [email protected]
Website: www.exxarotiles.com
Exxaro Tiles IPO Registrar
Link Intime India Private Ltd
Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai – 400083
Phone: +91-22-4918 6270
Email: [email protected]
Website: http://www.linkintime.co.in
Exxaro Tiles IPO Lead Manager(s)
- Pantomath Capital Advisors Private Limited
We hope we are able to answer all your questions about Exxora Tiles IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Exxaro tiles Limited
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Exxaro tiles Limited applications of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Exxaro Tiles IPO GMP today?
Exxaro Tiles IPO Grey Market Premium is INR 4.
Exxaro Tiles IPO Listing Date?
Exxaro Tiles IPO will listing on 16 August 2021.
Exxaro Tiles IPO Allotment Date?
Exxaro Tiles IPO Allotment Date is 11 August 2021.
Exxaro Tiles IPO Opening Date?
Exxaro Tiles IPO Opening Date is 04 August 2021.
Lot Size for Exxaro Tiles IPO?
Lot Size for Exxaro Tiles IPO Allotment is 120.
