ABOUT COMPANY:
Exxaro Tiles Ltd. (ETL) is engaged in the manufacturing and marketing of vitrified tiles used for flooring solutions. Having started its operation in the manufacturing of frits, over the years it diversified and expanded to its current status. It manufactures broadly two products i.e. double charge vitrified tiles and glazed vitrified tiles.
Its product basket has 1000+ designs and it is sold under its own brand "Exxaro". As of the date of filing its RHP, it had 2000+ registered dealers across 24 states/union territories with PAN India presence. It is also exporting its products to over 12 countries internationally.
FINANCIAL PERFORMANCE:
On the financial performance front, ETL has posted turnover/net profits of Rs. 221.25 cr. / Rs. 9.14 cr. (FY18), Rs. 244.01 cr. / Rs. 8.92 cr. (FY19), Rs. 243.96 cr. / Rs. 11.26 cr. (FY20) and Rs. 259.85 cr. / Rs. 15.22 cr. (FY21). Boost in the top and bottom lines in the pre-IPO year (under pandemic scare) raises concern.
For the last three fiscals, the company has posted an average EPS of Rs. 3.83 and an average RoNW of 10.73%. The issue is priced at a P/BV of 3.14 based on its NAV of Rs. 38.20 as of March 31, 2021, and at a P/BV of 2.05 based on its post-issue NAV of Rs. 58.65 (at the upper cap).
If we attribute FY21 super earnings on fully diluted post issue equity, then the asking price is at a P/E of 35.29 making it a fully priced issue. The sustainability of FY21 margins is a major concern. Based on its FY 20 earnings, the issue is priced at a P/E of 47.62.
Exxaro Tiles IPO Details
| IPO Opening Date | Aug 4, 2021 |
| IPO Closing Date | Aug 6, 2021 |
| Issue Type | Book Built Issue IPO |
| Face Value | ₹10 per equity share |
| IPO Price | ₹118 to ₹120 per equity share |
| Market Lot | 125 Shares |
| Min Order Quantity | 125 Shares |
| Listing At | BSE, NSE |
| Issue Size | 13,424,000 Eq Shares of ₹10 (aggregating up to ₹161.09 Cr) |
| Fresh Issue | 11,186,000 Eq Shares of ₹10 (aggregating up to ₹134.23 Cr) |
| Offer for Sale | 2,238,000 Eq Shares of ₹10 (aggregating up to ₹26.86 Cr) |
Exxaro Tiles IPO Tentative Timetable
| IPO Open Date | Aug 4, 2021 |
| IPO Close Date | Aug 6, 2021 |
| Basis of Allotment Date | Aug 11, 2021 |
| Initiation of Refunds | Aug 12, 2021 |
| Credit of Shares to Demat Account | Aug 13, 2021 |
| IPO Listing Date | Aug 17, 2021 |
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