Exxaro Tiles Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹120
Per ShareLot Size
125 Shares
Minimum Investment
₹15,000
Issue Size
₹158.4 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
40%
QIB Quota
25%
NII Quota
35%
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
Exxaro Tiles Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
55.19%
Issue Type
Book Building
ISIN
INE0GFE01026
About the Company
Exxaro Tiles Limited is engaged in manufacturing and marketing of vitrified tiles used majorly for flooring solutions. It commenced business as a partnership firm in 2007-08 as a manufacturer of frit, which is one of the raw materials used in manufacturing of tiles and have over the years, diversified, expanded and evolved into a manufacturer for vitrified tiles. It mainly deals in two product categories i.e. Double Charged Vitrified Tiles and Glazed Vitrified Tiles. As on date, It supplies products mainly in 6 sizes. It has 1000+ designs in its product basket, which are marketed under its brand "Exxaro".
Industry Overview
The Indian Ceramic Tiles industry is highly fragmented in nature, with many small-size family owned entities. The industry enjoys some inherent advantages such as abundant raw material from indigenous sources, advanced infrastructure and low labour costs. The size of the Indian tiles industry is estimated to be around Rs 35,000 to Rs 40,000 crores in 2019 with exports comprising of close to 35% of the sector revenue. While, domestic sales were impacted, due to Covid-19-induced lockdown, one of the strictest ever lockdowns, imposed in the country, exports remained continued to grow in 2020 which restricted the decline in overall size of the industry to just 10-12% in 2020. The domestic industry has also now moved on from traditional products such as floor tiles to other value-added products such as glazed vitrified tiles and polished vitrified tiles. Vitrified tiles are ceramic tiles with low porosity. Glazed vitrified tiles have a glazed surface and offers a variety of design, art work and surface textures.
Company History
Exxaro Tiles Limited was incorporated at Himmatnagar as `Ricasil Ceramic Industries Private Limited' on January 2, 2008 as a private and joint stock company under Part IX of the Companies Act, 1956, with the Assistant Registrar of Companies, Gujarat, Dadra and Nagar Haveli pursuant to conversion of M/s. Ricasil Ceramic Industries, a partnership firm. The partnership firm was originally formed by a partnership deed dated May 14, 2007 read with supplementary partnership deeds dated December 7, 2007 and December 20, 2007, respectively. This firm was thereafter converted into a private company pursuant to a certificate of incorporation dated January 2, 2008 in the name of "Ricasil Ceramic Industries Private Limited". Pursuant to a special resolution passed by the shareholders of the Company at the extra-ordinary general meeting held on February 12, 2018, the name of the Company was changed to Exxaro Tiles Private Limited. Thereafter, the Company was converted into a public limited company pursuant to a special resolution passed by Shareholders of the Company at the Extraordinary General Meeting held on December 9, 2020. The name of the Company was changed to its present name `Exxaro Tiles Limited', pursuant to a fresh Certificate of Incorporation issued by the Registrar of Companies, Ahmedabad on December 28, 2020.
Growth Strategy
- Strengthen its brand value
- Expand its dealer network in existing markets and increase its export presence
- Increase its sales by enhancing its manufacturing capacities and procuring materials on outsourced basis
- Continue to improve operating efficiencies through technology enhancements and setting up own gas station
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 Offering of 13,424,000* equity shares of face value of Rs. 10 each ("equity shares") of the company for cash at a price of Rs. 120 per Equity share (including a share premium of Rs. 110 per equity share) ("offer price") aggregating to Rs. 160.77** Crores, comprising a fresh issue of 111,86,000* equity shares aggregating up to Rs. 133.91** Crores by the company ("fresh issue") and an offer for sale of 2,238,000* equity shares aggregating to Rs. 26.86* Crores by MR. DIXITKUMAR PATEL ("selling shareholder") ("offer for sale", and together with the fresh issue, "offer"). The offer will constitute 30% of the post-offer paid-up equity share capital. This offer includes a reservation of 268,500* equity shares aggregating to Rs. 2.90** Crores (constituting 0.60% of the post-offer paid-up equity share capital of the company) for purchase by eligible Employees (the "employee reservation portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constitutes 30% and 29.40%, respectively, of the post-offer paid-up equity share capital of the company. The company and the selling shareholder in consultation with the book running lead manager, offered a discount of Rs. 12 of the offer price to eligible employees bidding in the employee reservation portion ("employee discount"). The face value of each equity share is Rs. 10. The offer price is Rs. 120 per equity share and is 12 times the face value of the equity shares. * subject to finalisation of the basis of allotment. **subject to the finalisation of basis of allotment and adjusted for employee discount of Rs. 12 per equity share.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- State-of-the-art, automated manufacturing facilities with strong focus on design and quality
- Widespread sales and dealers network
- Wide product portfolio comprising 1000+ designs
- Experienced management and dedicated employee base
- Volatility in the supply and pricing of its raw materials and stores & spares may have an adverse effect on its business, financial condition and results of operations.
- The shortage or non-availability of power, fuel and water facilities may adversely affect its vitrified tiles manufacturing process and have an adverse impact on the results of operations and financial condition. The company are further exposed to fluctuations in the prices of power & fuel and an inability to pass on increased costs may adversely affect its profitability.
- The company manufacturing operations are critical to its business and any shutdown of the manufacturing facilities may have an adverse effect on its business, results of operations and financial condition. Further the manufacturing facilities are concentrated in a single region i.e. Gujarat and the inability to operate and grow our business in this particular region may have an adverse effect on its business, financial condition, results of operations, cash flows and future business prospects.
- An inability to expand or manage its distribution network for business or the loss of any significant dealer may adversely affect the business and results of operations.
- The company business is dependent on the performance of the real estate, infrastructure and other related industries where its products are utilized. Uncertainty regarding the real estate market, infrastructure sector, economic conditions and other factors beyond the control could adversely affect demand for its products, the costs of doing business and its financial performance.