InvestorQ : Can you tell me about the proposed Exxaro Tiles IPO?
vaishnavi mhatre made post

Can you tell me about the proposed Exxaro Tiles IPO?

vidhya Laxmi answered.
2 years ago

In the latest IPO offering, and a lot of them are coming from Gujarat this time around, the Gujarat based Exxaro Tiles has also filed its draft red herring prospectus or DRHP with SEBI. The company proposes to raise Rs.150 crores through a public issue. Exxaro is a leading and profitable manufacturer of vitrified tiles in Gujarat.

The initial public offer or IPO will comprise of a fresh issue of up to 1.12 crore equity shares and a much smaller offer for sale of up to 22.38 lakh shares. The proceeds of the fresh issue will be used by Exxaro to repay some of its borrowings coming up due and also to prepay some of the borrowings in order to save on interest costs. In addition, Exxaro also plans to finance some of its working capital needs through the issuer proceeds.

Exxaro is currently engaged in the manufacture and marketing of vitrified tiles. Its predominant market consists of offering flooring solutions in the residential and commercial segments. Exxaro has a manufacturing capacity of 1.32 crore square metres per year and it does not foresee the need for any capacity expansion at this point of time. The company enjoyed EBITDA margins of 20% last fiscal and also record operating margins or OPM.