Global Surfaces IPO

Global Surfaces Limited is specialises in the processing of natural stones and the creation of engineered quartz. Granite, limestone, marble, slate, quartzite, onyx, sandstone, travertine, and other materials that are mined from the earth are examples of natural stones that are created by intricate geological processes. Global Surfaces IPO will hit the stock market in September 2022.

About Global Surfaces

Since no two natural stones are exactly same and natural stones are renowned for their distinctiveness, aesthetic appeal, texture, color, and composition. On the other hand, engineered quartz, a composite material comprised of crushed stone bound by an adhesive, is an example of engineered stone utilized in the countertop business.

For an example, quartz crystals are fused with a resin binder to create the slabs used for countertops. The total market for natural and engineered stone was worth $60,148 million globally in 2021, and it is anticipated to increase to $105,265 million by 2030.

The natural stone category held a significant market share of 60% in 2021, contributing $35,999 million, while the engineered stone segment contributed $24,150 million annually.

Production Unit

For the processing and manufacture of Global Surfaces’s products, they have two facilities, one at Mahindra World City SEZ in Jaipur, Rajasthan and the other at RIICO Industrial Area, Bagru Extn, Bagru, Jaipur, Rajasthan.

The Unit I, which is around 20,488 square meters in size, is situated in Bagru, Jaipur, Rajasthan. This Unit, which is solely dedicated to processing natural stones including marble, granite, and quartzite, was purchased by them in 2004 as a stressed asset under the Recovery of the Debt Due to Banks and Financial Institutions Act, 1993.

The essential raw material (blocks of natural stone) is strategically adjacent to their Unit I, which helps them source the raw materials and lowers the cost of logistics and transportation.

Sales & Export

Global Surfaces’s products can be used for cut-to-size objects, wall cladding, countertops, and flooring. Their products are sold both inside and outside of India and are used in the commercial and residential sectors of the economy.

Their primary goal is exporting, and they have done so to the Middle East, Canada, Australia, and the United States. The business model is to continuously develop new designs to add to their product portfolio.

They interact with their customers on a regular basis through marketing and promotional efforts as well as events targeted at the industry.

In order to create and improve their products to satisfy consumer tastes and market expectations, Global Surfaces’ sales team closely collaborates with customers to gain their thoughts.

Global Surfaces IPO

Global Surfaces Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 11,070,000 Equity Shares on 17 June 2022.

The offer includes a fresh issue of INR 8,520,000 Equity Shares and there is offer for sale (OFS) of 2,550,000 by the promoters mentioned in the DRHP. They are not looking for a Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-22	31-Mar-21	31-Mar-20
Total Assets		236.48	159.00	128.73
Total Revenue		198.36	179.00	165.78
Profit After Tax		35.63	33.93	20.96

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2022	10.52	10.52	3
Financial Year 2021	10.02	10.02	2
Financial Year 2020	6.19	6.19	1
Weighted Average	9.63	9.63

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

They feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the offer price:

• Wide range of products and numerous designs.
• Presence that is well-known in international marketplaces.
• Promoter with experience and a focus on results.
• Combination of a motivated staff base with a youthful, experienced management team.
• Effective quality controls minimize loss.
• R&D setup for developing new products.

Global Surfaces Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Pokarna Limited	29.53

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the BSE on June 23, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.

Global Surfaces IPO Details

IPO Opening Date	September 2022
IPO Closing Date	September 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	11,070,000 Equity Shares
Fresh Issue	8,520,000 Equity Shares
Offer for Sale	2,550,000 Equity Shares

Global Surfaces IPO Date

Global Surfaces Limited IPO opening date is September 2022, and the closing date is September 2022. The Global Surfaces issue may list in September 2022.

IPO Opening Date	September 2022
IPO Closing Date	September 2022
Basis of Allotment Date	September 2022
Initiation of Refunds	September 2022
Credit of Shares to Demat Account	September 2022
IPO Listing Date	September 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Global Surfaces India Limited IPO 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 Global Surfaces IPO.

Global Surfaces IPO GMP

Global Surfaces Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
September 2022
September 2022
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September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Global Surfaces Limited IPO Review

Global Surfaces Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Global Surfaces IPO is good or bad.

Global Surfaces Limited IPO Risk

• They do not sign into long-term contracts with their clients, & should such contracts not be maintained, it could have a negative impact on their business.
• Their exports to the USA account for the majority of their income, thus any unfavorable changes in this market or economic ties between India and the USA could have a negative impact on their operations.
• Their offices & apartments are situated on a leased basis. These leasehold agreements could have a materially negative impact on their business if they not renewed on conditions that are acceptable to them.
• They have engaged in related party transactions in the past & might do so again in the future, which could result in conflicts of interest with the equity shareholders.

Other Threats

1. They borrowed money from commercial banks, & their firm could suffer if they are unable to meet the repayment and other covenant requirements under their financing agreements.
2. Any unplanned or protracted interruption of their production processes could have a materially negative impact on their business.
3. Their business, its promoter, & its directors are involved in several legal disputes. Any unfavorable result in such proceedings could have a negative effect on their business.
4. In their inspection report on the restated financial statements, their Statutory Auditors highlighted a number of issues.
5. Based on third-party certification & management’s estimations, which are subject to change predicated on different factors, some of which are outside their control, their funding requirements & proposed deployment of the Net Proceeds are based.

Subsidiary

They plan to set up a specific facility for the production of engineered quartz in Dubai, United Arab Emirates, through their fully owned subsidiary, Global Surfaces FZE.

For a period of twenty years, Global Surfaces FZE has leased a plot of land spanning 39,657.63 square meters at Plot No. S-50902, The Jebel Ali Free Zone, Dubai, UAE. The lease includes a rent-free period that lasts until June 13, 2023.

In order to help them, through their subsidiary, accomplish physical growth, organic growth, optimization of freight and transportation costs, client acquisition, and company expansion, this Unit would be strategically positioned.

Global Surfaces Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Global Surfaces IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Global Surfaces Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
September 2022	1
September 2022	2
September 2022	3

Global Surfaces Limited Management

Their promoter and managing director, Mr. Mayank Shah, has worked in the stone business for about 18 years.

He played a key role in reviving and transforming a sick and closed unit (Unit I) into a profitable venture and assisting them in reaching great milestones, such as the establishment of a dedicated unit in 2018 for manufacturing engineered quartz at Mahindra World City SEZ, Jaipur (Unit II), and doubling their operating revenue from approximately $500 million in Fiscal 2016 to approximately $1350 million in Fiscal 2019.

Under his guidance, their Company has garnered awards from well-known international organizations such as Asia Pacific Enterprise, Capexil, India SME Forum, Government of Rajasthan – Department of Industries, and Indian Organization for Commerce and Industry.

Global Surfaces Limited‘ Promoters

• Mr. Mayank Shah

Promoter’s Holding

Pre Issue Share Holding	73.55%
Post Issue Share Holding

Global Surfaces Limited Prospectus