About the Company:
Exxaro Tiles Ltd is engaged in manufacturing and marketing of vitrified tiles used majorly for flooring solutions.
Company commenced business as a partnership firm in 2007-08 as a manufacturer of frit, which is one of the raw materials used in manufacturing of tiles and have over the years, diversified, expanded and evolved into a manufacturer for vitrified tiles.
Currently company supplies products mainly in 6 sizes and have 1000+ designs in the product basket, which are marketed under company’s brand “Exxaro”.
Company has a operating history of more than a decade, and have supplied products for various projects including residential, commercial, educational institutions, hotels, hospitals, government, religious institutions, builders/developers, etc.
Company has more than 2,000 registered dealers and also supplies products for large infrastructure related projects.
Company has a Wide product portfolio comprising 1000+ designs.
Company has 6 display centres in 6 cities and 2 marketing offices at Delhi and Morbi.
Company’s Manufacturing Facilities:
Company has two state-of-the-art manufacturing facilities which are located at Padra and Talod respectively in Gujarat and have a combined installed production capacity of 1,32,00,000 sq. mt. p.a.
Company’s Unit II is one of the single largest plants for manufacturing glazed vitrified tiles under one roof in India.
Company’s Domestic & Exports Business:
Domestically, company has PAN India presence (27 states based on sales made during Fiscal 2020) and internationally company supplies products in over 13 countries including Poland, UAE, Bosnia etc.
For the nine months ended December 31, 2020 and for Fiscals 2020, 2019 and 2018, our revenue from exports contributed 18.34%, 13.51%, 6.68% and 2.35%, respectively of our revenue from operations. Company’s revenues from exports have grown at a CAGR of 150.87% between Fiscals 2018 and 2020.
Competitors in the Business:
Among listed Companies, Exxaro Tiles Ltd faces competition from listed companies like Kajaria Ceramics Ltd, Asian Granito India Ltd, Somany Ceramics Ltd, Orient Bell Ltd and Murudeshwar Ceramics Ltd.
Comparison of Listed Tiles Companies w.r.t Capacity, production & Capacity Utilization:
Management Team:
- Mr. Mukeshkumar Patel (Designation: Chairman and Managing Director)
- Mr. Kirankumar Patel (Designation: Whole-Time Director)
Objectives of the Issue:
Offer for Sale: (Rs. 26.8 cr)
- Company will not receive any proceeds of the Offer for Sale by the Selling Shareholder.
Fresh Issue: (Rs. 134 cr)
- Prepayment/repayment of certain secured borrowings availed by the Company.
- Funding the working capital requirements of the Company.
- General corporate purposes.
Positives for the Company:
State-of-the-art manufacturing facilities with strong focus on design and quality.
- Company manufactures majority of its products in-house at two Units which have a combined installed production capacity of 1,32,00,000 sq.mt. p.a. Unit I is spread over 37,460 sq.mt. whereas Unit II is spread over 1,23,504 sq.mt.
- Company’s manufacturing facilities are fully integrated from raw material handling to finished goods warehousing process, and are equipped with latest key machineries
- Company’s Unit II is one of the single largest plant for manufacturing glazed vitrified tiles under one roof in India.
Widespread sales and dealers network.
Company’s marketing model for domestic operations is majorly divided into two parts: 1) Supply of products through dealer-distribution network 2) Supply of products for infrastructure related projects and to private customers.
As on date company has over 2,000 registered dealers and domestically and have PAN India presence in 27 states across india.
Wide product portfolio comprising 1000+ designs.
- Company’s product portfolio consists of 1000+ designs which are categorised into various series and available over 6 sizes.
- wide range of designs and offering various sizes of products, provides company with an opportunity to cater to diverse needs of different customer segment and capture higher market share.
Company plans to Expand the dealer network in existing markets.
- Company’s focus is on increasing the penetration in existing markets by expanding the dealers’ network.
- As a business strategy, company intends to expand the dealers’ network in Tier-2 cities, Tier-3 cities and rural areas as company believes that there are significant untapped opportunities in these cities to grow the business operations.
Company has plans to Increase the Exports.
- The export of ceramic tiles from India has doubled in the last three years to 360 sq mt mn in 2019 from 186 sq mt mn in 2016.
- India’s share in world exports has been increasing and replacing China’s share on account of anti-dumping duties imposed by various countries on Chinese tiles this has benefited India the most.
- Currently, company is exporting to over 13 countries with major exports being in Poland, UAE and Bosnia. Company intends to capitalise on huge demand for Indian tiles and increase export presence.
- In this direction, company plans to participate in international trade exhibitions, appoint dealers at strategic locations, create local presence and explore geographies such as Spain, Mexico, Italy, etc. where company can increase our international operations.
Financials of the Company:
| (in Crores) | FY 18 | FY 19 | FY 20 | FY 21 |
|---|---|---|---|---|
| Revenue | 221.2 | 244.0 | 243.9 | 259.8 |
| Net Profit | 9.1 | 8.9 | 11.2 | 15.2 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Exxaro Tiles Ltd | 10 | 4.54 | 26.43 | 11.88% | 38.20 |
| Kajaria Ceramics Ltd | 1 | 16.06 | 59.96 | 14.89% | 107.84 |
| Asian Granito India Ltd | 10 | 14.02 | 13.58 | 8.50% | 164.92 |
| Somany Ceramics Ltd | 2 | 3.54 | 124.65 | 2.47% | 143.10 |
| Orient Bell Ltd | 10 | 4.94 | 44.46 | 3.09% | 161.36 |
| Murudeshwar Ceramics Ltd | 10 | 0.25 | 88.00 | 0.52% | 70.27 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 4th August 2021 |
| Issue Closes on:. | 6th August 2021 |
| Issue Price | Rs.118 – 120 |
| Face Value | Rs. 10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 125 Shares |
| Minimum Investment | Rs. 15,000 |
| Issue Constitutes | 30% |
| Issue Size | Rs. 160.8 cr ($21 million) |
| Market Cap | Rs. 536 cr ($ 73 million) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 1,11,86,000 |
| Equity Shares Offered (OFS) | 22,38,000 |
| Total Equity Shares Offered (Fresh + OFS) | 1,34,24,000 |
| Equity Shares Prior to the Issue | 3,35,55,070 |
| Equity Shares after the Issue | 4,47,41,070 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | On or Before 11th August 2021 |
| Initiation of Refunds | On or Before 12th August 2021 |
| Credit of Equity Shares: | On or Before 13th August 2021 |
| Listing Date: | On or Before 17th August 2021 |
Subscription Details:
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 13,15,550 | 1.11 | 1.66 | 17.67 |
| NII | 46,04,425 | 0.65 | 0.97 | 5.36 |
| Retail | 52,62,200 | 9.29 | 21.29 | 39.90 |
| Employee | 2,68,500 | 0.74 | 1.56 | 2.53 |
| TOTAL | 1,14,50,675 | 4.67 | 10.40 | 22.58 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.54 | 26.43 | 11.88% | 38.20 |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Exxaro Tiles Ltd Survey No. 169 & 170, Vavdi Harsol Road, At & Po.: Mahelav, Taluka: Talod, District.: Sabarkantha – 383 305, Gujarat, India. Tel No: +02772-350555 Email: info@exxarotiles.com Website: www.exxarotiles.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg Vikhroli (West) Mumbai, Maharashtra 400 083 Tel: +91 22 4918 6200 Fax: +91 22 4918 6195 Email: exxaro.ipo@linkintimeindia.co.in Website: www.linkintime.co.in |
| Lead Manager to the Issue: |
|---|
| Pantomath Capital Advisors Private Limited 406-408, Keshava Premises Bandra Kurla Complex, Bandra East Mumbai – 400 051 Tel: +91 22 6194 6700 Fax: +91 22 2659 8690 Email: ipo@pantomathgroup.com Website: www.pantomathgroup.com |
