Exxaro Tiles Shares Ends 10% Higher On Stock Market Debut
A week after its initial public offering concluded, Exxaro Tiles Ltd. listed on the bourses at a 5% premium over its issue price.
The stock listed at Rs 126 apiece on the National Stock Exchange compared with its issue price of Rs 120 apiece. It ended at its intraday high of Rs 132.30 (or up 10.25%).
The Rs 161-crore IPO by the tilemaker was subscribed 22.6 times, led by demand from retail and institutional investors.
Exxaro sold 1.3 crore shares at Rs 118-120 apiece, seeking a market value of Rs 537 crore at the upper end of the price band. Of the proceeds, the company said it plans to pay long-term debt of up to Rs 50 crore and augment working capital requirements of up to Rs 45 crore.
Exxaro manufactures two categories of tiles — double charge vitrified tiles (suitable for heavy traffic commercial projects) and glazed vitrified tiles (for flooring in residential complexes as well as various commercial buildings and corporate offices).
The company has two manufacturing facilities located at Padra and Talod in Gujarat. It earns 85% of its revenue from domestic retail and institutional segment through its more than 2,000 registered dealers. Exports contribute 13.88% of its total revenue.