Esprit Stones Limited is launching an IPO with a fresh issue of 57,95,200 shares worth INR 50.42 crores. The company aims to fund working capital, invest in HSPL, and cover general corporate purposes.
Esprit Stones IPO – Important Dates
| Esprit Stones Limited IPO Date | July 26, 2024 to July 30, 2024 |
| Esprit Stones Limited IPO Listing Date | August 2, 2024 |
| Esprit Stones Limited IPO Price | INR 82-87 per share |
| Esprit Stones Limited IPO Lot Size | 1600 shares |
| Esprit Stones Limited IPO Total Issue Size | INR 50.42 crores |
| Esprit Stones Limited IPO Basis of Allotment | July 31, 2024 |
| Esprit Stones Limited IPO Initiation of Refunds | August 1, 2024 |
| Esprit Stones Limited IPO Credit of Shares to Demat | August 1, 2024 |
| Esprit Stones Limited IPO Issue Type | Book Built Issue IPO |
| Esprit Stones Limited IPO Listing At | NSE SME |
Esprit Stones Limited IPO – Company Profile
Esprit Stones Limited manufactures durable engineered quartz and marble surfaces with superior scratch, stain, and heat resistance. Ideal for various applications, they offer a wide variety of colors, styles, designs, and textures.
Incorporated in 2016, Esprit Stones Limited, promoted by Udaipur’s Aravali and Gattani groups, expanded rapidly. It now manufactures engineered quartz and marble surfaces and unsaturated polyester resin and exports to over ten countries, primarily the USA.
Initially export-focused, the company launched the premium brand “Haique” for the domestic market, expanded to 15 states, and is setting up an experience center in Kishangarh to promote “Haique” as a luxury brand.
Esprit Stones Ltd IPO Fundamental Analysis
Esprit Stones Limited Technologies’ financial analysis reveals a mixed performance. Revenue has decreased from March 2022 to March 2023 but increased by March 2024. Equity, liabilities, and total assets have risen, indicating potential growth.
- Revenue Trend: The revenue decreased from ₹18,645.65 lakhs in March 2022 to ₹17,441.09 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 27,289.02 lakhs.
- Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly decreased from ₹27,289.02 lakhs in March 2022 to ₹1,031.73 lakhs by March 2024. This decline in profitability could be a source of concern among investors.
- Earnings per Share (EPS): The diluted EPS has reduced from ₹11.46 in March 2022 to ₹6.29 by March 2024, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 37.25% to 15.09%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth.
Esprit Stones IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 18,645.65 | 17,441.09 | 27,289.02 |
| Equity (₹ in lakhs) | 5,893.32 | 6,227.81 | 7,238.8 |
| Expenses (₹ in lakhs) | 16,635.26 | 17,075.28 | 26,068.14 |
| Profit and Loss After Tax (₹ in lakhs) | 1,850.53 | 355.72 | 1,031.73 |
| Diluted EPS only (₹) | 11.46 | 2.13 | 6.29 |
| Return on Net Worth (%) | 37.25 | 5.66 | 15.09 |
| NAV per Equity Share (₹) | 36.49 | 38.56 | 44.82 |
| Total Assets (in lakhs) | 18,069.74 | 23,802.24 | 27,459.35 |
| Total Liabilities (in lakhs) | 12,176.42 | 17,574.43 | 20,220.55 |
| Debt Equity Ratio | 0.98 | 1.90 | 1.72 |
Esprit Stones Limited IPO Peer Comparison
Esprit Stones Limited shows varied financial metrics compared to peers: lower profitability and EPS but significant revenue and asset growth. Pokarna Limited leads in revenue and profitability, while Pacific Industries and Global Surfaces show strong performance in EPS and RoNW.
| Company | Revenue from Operations(₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| Esprit Stones Limited | 27,289.02 | 10 | – | 6.29 | 15.09 | 44.82 |
| Pokarna Limited | 68,761.40 | 2 | 25.33 | 28.18 | 15.89 | 191.05 |
| Pacific Industries Limited | 19,000.08 | 10 | 16.43 | 17.23 | 2.78 | 629.16 |
| Global Surfaces Limited | 22,529.10 | 10 | 51.34 | 4.41 | 6.68 | 77.98 |
| Elegant Marbles & Grani Industries Limited | 3,422.42 | 10 | 23.69 | 11.42 | 3.44 | 436.83 |
Esprit Stones Ltd IPO Objective
The main objective of Esprit Stones Limited is to fund working capital requirements, invest in Haique Stones Private Limited for borrowing repayments and working capital, and support overall business growth and stability.
- Funding the company’s Working Capital requirement: The company intends to utilize INR 14 crores from the net proceeds to fund increased working capital requirements due to expanded capacity, higher inventory, and trade receivables while managing higher procurement costs and trade payables.
- Investment in the Subsidiary, Haique Stones Private Limited (HSPL), for repayment and prepayment in part or whole of its outstanding borrowings: The company plans to utilize INR 19.50 crores from the net proceeds to invest in HSPL, enabling partial or complete repayment of its term loan from ICICI Bank, and potentially managing further financing arrangements.
- Investment in the Subsidiary, Haique Stones Private Limited (HSPL), to fund its Working Capital Requirement: The company plans to invest INR 6.50 crores from the net proceeds in HSPL to support its working capital needs, including inventory and receivables, with deployment over the financial year 2025 and repayment on demand.
- General Corporate Purpose: The company will deploy the balance of funds towards general corporate purposes, including brand building and marketing activities, further capital expenditure, ongoing corporate needs, and any other strategic initiatives as required.
Esprit Stones IPO Risks And Challenges
Esprit Stones Limited’s risk includes operational disruptions from equipment failures and external factors, lease non-renewals affecting premises, price volatility, supply issues with raw materials, and incredibly crude oil-derived resins, which can impact costs and profitability.
- Their four manufacturing facilities in Rajasthan are crucial for production but face risks such as equipment failure, power disruptions, severe weather, and compliance issues. Disruptions, including COVID-19 lockdowns, have previously affected operations and customer relationships.
- While their manufacturing facilities are owned, some business premises are leased. If lease agreements are not renewed on favorable terms or are terminated, it may disrupt operations and negatively impact their business and financial condition.
- Their operations rely on raw materials like quartz grit, marble grit, and polyester resin, representing a significant portion of the costs. Price volatility and supply issues may impact costs and profitability, especially with crude oil-derived resins.
Esprit Stones Ltd IPO – Industry & Market Potential
The global engineered stone market, driven by quartz and marble, is expected to grow at a CAGR of 7-8%, reaching $37,569 million by 2027 and $48,104 million by 2032, despite past disruptions and inflation.
Engineered stones, valued at $4,120 million in 2022, offer diverse colors, textures, and appearances, driving market growth. With high-quality expectations, the segment is projected to grow at a CAGR of 6-7% through 2027.
The Indian unsaturated polyester resin market, valued at $1,290 million in 2022, is projected to grow at a CAGR of 8% to reach $2,674 million by 2032, driven by advancements in the construction and automotive industries.
Esprit Stones Limited IPO – Type of Offer
Esprit Stones Limited is launching an IPO with a fresh issue of 57,95,200 shares worth INR 50.42 crores. The company aims to fund working capital, invest in HSPL, and cover general corporate purposes.
Esprit Stones IPO Offer Size
The offer size of Esprit Stones Limited is INR 50.42 crores, consisting of a fresh issue of 57,95,200 shares. The company seeks working capital funds, invests in HSPL, and covers general corporate purposes.
Esprit Stones Limited IPO Allotment Structure
Esprit Stones Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 291,200 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 291,200 shares, are reserved for marker makers.
How to apply for an Esprit Stones Limited IPO?
To apply for the Esprit Stones Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Esprit Stones Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Esprit Stones Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Esprit Stones Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Esprit Stones Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Esprit Stones Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Esprit Stones Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Esprit Stones Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Esprit Stones Limited Ltd IPO Offer Registrar
The registrar for the Esprit Stones Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park,
L.B.S. Marg, Vikhroli (West),
Mumbai-400 083
Maharashtra, India
Telephone: +91 8108114949
E-mail: [email protected]
Website: www.linkintime.co.in
Esprit Stones Limited Limited IPO – FAQs
1. What is Esprit Stones Limited’s allotment date?
The allotment date of the Esprit Stones Limited IPO is July 31, 2024.
2. What is the price band of the Esprit Stones Limited IPO?
The price band of the issue is INR 82-87 per share.
3. What is the size of the Esprit Stones Limited IPO?
The offer size of Esprit Stones Limited is INR 50.42 crores, consisting of a fresh issue of 57,95,200 shares. The company seeks working capital funds, invests in HSPL, and covers general corporate purposes.
4. What is the listing date of the Esprit Stones Limited IPO?
The listing date of Esprit Stones Limited’s IPO is August 2, 2024.
