Exxaro Tiles IPO Opens Tomorrow: What to Expect from It?

Exxaro Tiles opens its initial public offering for investors tomorrow. The same will be open for public subscription until this Friday, i.e., 6 August 2021. The price band for this initial public offer will be Rs. 118 – Rs. 120 per share.

Through this IPO, Exxaro Tiles plans to raise Rs. 161 crores from the investors. To achieve the same, the company plans to issue a total of 11,186,000 equity shares. Also, one of its stakeholders will dilute his/her ownership of 2,238,000 shares through this public offer.

Exxaro Tiles’ GMP, at the time of writing on 3 August 2021, was Rs. 15. This means that the shares were trading on the grey market at Rs. 133 – Rs. 135. This indicates that we can expect a listing gain of nearly 12.50 from this public offer.

Here’s what investors can look forward to from this company IPO.

How Exxaro Tiles Plans to Use the Funds from this IPO?

It is expected that the company will use the proceeds from this initial public offering to meet these fundamental purposes –

• Address working capital requirement
• Prepayment or repayment of existing debts
• Meeting its general corporate purposes

Who will be Participating in this IPO?

We can expect qualified institutional buyers, retail individual investors and non-institutional investors to participate in Exxaro IPO.

Note that a retail investor can subscribe to a maximum of 13 lots, i.e., 1625 shares amounting to Rs. 195,000. Also, an investor can apply for a minimum of 1 lot, which comprises a total of 125 shares worth Rs. 15000.

When will the Exxaro IPO Shares be Allotted to Investors?

We can expect the shares to be allotted to bidders on 11 August 2021. Investors can check their share allotment status on the official websites of stock exchanges. They can also check the site of the company’s official registrar to track the same.

Investors can also check the status of share allotment through the Angel One portal.

Bottom Line

Exxaro Tiles is a market player in a highly fragmented ceramics space. The company’s strong presence in 27 Indian states and over 13 global countries makes it a recognised name in the domestic and international markets.

This diverse geographical presence ensures multiple sources of earnings for the company and emerges as upsides for investors regarding regular returns and substantial dividend distribution.

However, it is recommended to conduct a thorough analysis of the company’s SWOT to ensure a profitable investment endeavour when subscribing to this company’s IPO.

 

Frequently Asked Questions

1. Who are the promoters of Exxaro Tiles?

Mukesh Kumar Patel, Dineshbhai Patel, Rameshbhai Patel and Kirankumar Patel are the promoters of this company. The pre-issue IPO shareholding makes up 56.09%, whereas the post-issue shareholding is 42.5%.

2. Who is the lead manager of Exxaro Tiles IPO?

Exxaro Tiles has appointed Pantomath Capital Advisors Pvt Ltd as the lead manager of this upcoming public offer.

3. Who is the registrar of Exxaro Titles IPO?

Link Intime India Private Ltd. is the registrar of this initial public offer.

4. Will employees get a discount on Exxaro Tiles IPO shares?

Employees will get a discount of Rs. 12 on the lower price band of this upcoming IPO.