Esprit Stones Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the Esprit Stones Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹87
Per ShareLot Size
1600 Shares
Minimum Investment
₹1,39,200
Issue Size
₹50.42 Cr
Face Value
₹10
Per ShareIPO Type
Book Building - SME
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Esprit Stones Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
70.84%
Issue Type
Book Building - SME
ISIN
INE0SBP01018
About the Company
Esprit Stones Limited is primarily engaged in the manufacturing of Engineered Stones such as: (i) engineered quartz surfaces; and (ii) engineered marble surfaces. The Company majorly manufactures engineered quartz surfaces and through its Subsidiary, HSPL, the company manufactures engineered marble surfaces. The Company is one of the key Engineered Stone players in India. Engineered Stone is a composite material formed out of crushed stone that is held together by an adhesive. Engineered Stone's non-porous characteristics, offer superior scratch, stain and heat resistance, making them extremely durable and therefore get an edge over competing products such as laminate and other manufactured solid surfaces The strength, consistency, durability and appearance of its Engineered Stones, as well as their low maintenance makes it ideal for its application for vanities & bathroom surfaces, kitchen countertops, floors and wall cladding furniture, and other interior surfaces that are used in a variety of residential and non-residential applications. Through its innovative design and manufacturing processes, the company is able to offer its product in wide variety of colours, styles, designs and textures.
Industry Overview
The Indian engineered stone market is estimated to be valued at $3,643 million in 2022. The industry is expected to grow at a CAGR of 7-8% in the projected years between 2022 to 2027. By the year 2032, the Indian engineered stone market is expected to reach $ 7,355 million. The outlook for the natural segment is stable with a positive upside in the medium term. Like natural stones, the engineered stone industry is also linked to commercial and residential real estate industries. Going forward, with hybrid working environment, design specifications for homes are likely to be altered as there will be higher demand for flexible homes that are capable of functioning as offices and classrooms if required. This would result in increased penetration of engineered stones to be used in interior designing. Under commercial real estate, the hospitality segment is expected to register a gradual pick-up over the coming years as the sector recovers from the effects of the pandemic. This would turn out well for engineered stones as they are widely used in swimming pools, food facilities, walls, canteens, kitchen countertops, etc.
Company History
Esprit Stones Limited was originally incorporated as `Esprit Stones Private Limited', a private limited company under Companies Act, 2013, pursuant to a certificate of incorporation dated October 19, 2016 issued by the Central Registration Centre. Subsequently, the Company was converted into a public limited company pursuant to a resolution passed by its shareholders at an Extra-ordinary General Meeting held on January 12, 2024 and a fresh certificate of incorporation dated February 5, 2024 was issued by the Registrar of Companies, Rajasthan at Jaipur consequent upon conversion, recording the change in name of the Company from `Esprit Stones Private Limited' to `Esprit Stones Limited'.
Products & Services
- Esprit Stones Limited is primarily engaged in the manufacturing of Engineered Stones such as: (i) engineered quartz surfaces; and (ii) engineered marble surfaces.
Growth Strategy
- Expand awareness of its premium brand.
- Focus on existing and entering new markets.
- Enhanced focus on efficiency, cost and return on capital.
- Focus on rationalizing its consolidated indebtedness.
- Expand the product line by introducing fresh designs to the portfolio.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of up to 57,95,200 equity shares of face value Rs. 10 each (the "Equity Shares") of Esprit Stones Limited ("The Company" or the "Issuer") for cash at a price of Rs. 87 per equity share (including a securities premium of Rs. 77 per equity share) ("Issue Price"), aggregating to Rs. 50.35 crores (the "Issue") of which 2,91,200 equity shares aggregating to Rs. 2.53 crores (constituting 1.33% of the post-issue paid-up equity share capital of the company) were reserved for subscription by market maker ("Market Maker Reservation Portion") and up to 1,28,000 equity shares aggregating to Rs. 1.05 crores (constituting up to 0.58% of the post-issue paid-up equity share capital of the company) was reserved for subscription by eligible employees (the "Employee Reservation Portion"). The company, in consultation with the book running lead managers, offered a discount of up to 5.75% (equivalent of Rs. 5 per equity share) to the issue price to eligible employees bidding under the employee reservation portion ("Employee Discount"). The issue less the market maker reservation portion and employee reservation portion is hereinafter referred to as the "Net Issue". The issue and the net issue constituted 26.41 % and 24.50 % respectively of the post-issue paid-up equity share capital of the company.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- The Company is one of the key Engineered Stone players in the Indian Market.
- The Company believes that quality and innovations are the bed-rock of success. The Company has developed quality control processes for inspecting the raw materials as well as the final products.
- The Company is also engaged in the manufacturing of engineered quartz surfaces and the core raw material for manufacturing of engineered quartz are quartz grit and unstaturated polyester resin. This reduces its dependency on third-party raw material suppliers.
- The Udaipur area in Rajasthan has abundant mineral deposits that are used for manufacturing of its Engineered Stones. Its manufacturing facilities, located in the Udaipur district, benefit from the mineralrich ecology, resulting in economic and logistical advantages.
- The Company believes that its Promoters have played a key role in the development of its business and the company benefits from its industry knowledge and expertise, vision and leadership. In addition to its Promoters, its key management and senior management team includes qualified, experienced and skilled professionals who possess requisite experience across various division of its business.
- Its Manufacturing Facilities are concentrated in the Udaipur, Rajasthan. Any disruption, breakdown or shutdown of its Manufacturing Facilities may have a material adverse effect on the companay's business, financial condition, results of operations and cash flow.
- The company does not own some of the business premises where its Registered office, branch office, storage facilities are located.
- Its manufacturing activity is subject to availability of raw material and the costs of the raw materials. Any shortage in availability or fluctuations in raw material prices, may have a material adverse effect on its business, financial condition, results of operations and cash flows.
- A significant majority of its revenues from operations are derived from a limited number of customers.
- The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, any failure to obtain, retain and renew such approvals and licences or comply with such rules and regulations may adversely affect its operations.