Exxaro Tiles Prices IPO At Rs 118-120 Apiece

Exxaro Tiles Ltd. will sell shares at Rs 118-120 apiece in its initial public offering opening next week, as the company aims to pare borrowings.

The tilemaker’s Rs 161-crore IPO, opening on Aug. 4, comprises a fresh issue worth Rs 134.3 crore and a Rs 26.85-crore offer-for-sale by the promoter group, according to its red herring prospectus. The company is valued at Rs 537 crore at the upper end of the price band. The IPO will close on Aug. 6.

The Gujarat-based company makes and markets vitrified tiles used for flooring solutions. It plans to prepay long-term borrowings of Rs 50 crore and use Rs 45 crore to augment working capital requirement.

After the share sale, promoter and promoter group will own close to 37% in the company. The IPO accounts for 40.1% of the post-issue equity capital.

Exxaro Tiles reported revenue from operations at Rs 255.14 crore in the fiscal ended March 2021, with most of it accruing in the last nine months of the year. While Ebitda stood at Rs 47.2 crore during the period, profit was at Rs 15.29 crore.

It lost Rs 40-50 crore in the last financial year due to Covid-led lockdown.

The company expects its revenue to touch close to Rs 400 crore in FY22 as operations normalise, and profit of Rs 40 crore, Himanshu Shah, chief financial officer, said in an interaction with BloombergQuint.

Most Related Links :
todayprimenews Governmental News Finance News

Source link

Back to top button