Gujarat-based Exxaro Tiles, a manufacturer of vitrified tiles, has filed a Draft Red Herring Prospectus (DRHP) with market regulator SEBI for an initial public offering (IPO).
According to market sources, the company intends to raise ₹150-160 crore through the IPO.
According to the DRHP, the IPO will be of up to 1.34 crore shares, including a fresh issue of 1.12 crore and an offer for sale of up to 22.38 lakh shares by Dixitkumar Patel. The company may also consider a pre-IPO placement of up to 22 lakh shares.
The portion reserved for qualified institutional buyers will be up to 50 per cent, while that for non-institutional investors will be 15 per cent; the remaining 35 per cent will be reserved for retail investors. A certain portion of the offer will be reserved for employees.
The net proceeds from the fresh issue would be used to repay debt, fund working capital requirements and for general corporate purposes.
Pantomath Capital Advisors is the lead manager to the issue. Following the IPO, the company proposes to list its shares both on BSE and NSE.
Promoted by Mukeshkumar Patel, Dineshbhai Patel, Rameshbhai Patel and Kirankumar Patel, Exxaro Tiles started off as a partnership firm in 2007-2008 to manufacturer frit. Later, it diversified, and is now primarily into manufacturing and marketing of vitrified tiles. It currently has a 2,000-dealer network across 27 States.
The Indian tiles industry was estimated to be around ₹35,000-40,000 crore in 2019 with exports comprising close to 35 per cent of the sector revenue. China, the world’s largest producer, consumer and exporter of ceramic tiles over the past few years, has seen a decline in its dominance in the global tiles market.