Exxaro Tiles gets Sebi approval to float IPO

Exxaro Tiles, a leading manufacturer of vitrified tiles, has received markets regulator Sebi's go-ahead to raise an estimated Rs 150-160 crore through an initial share sale. The initial public offering of up to 1.34 crore equity shares will comprise a fresh issue of up to 1.12 crore equity shares and an offer for sale of up to 22.38 lakh equity shares by Dixitkumar Patel, according to the Draft Red Herring Prospectus (DRHP).

Exxaro Tiles, which filed preliminary IPO papers with Sebi in March, has received the observations from Sebi, as per an update from the regulator on Monday. Sebi's observations is necessary to launch public issues like Initial Public Offer (IPO), Follow on Public Offer (FPO) and Rights Issue.

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As per the DRHP, the Gujarat-based company may, in consultation with the merchant banker, consider a pre-IPO placement of up to 22 lakh equity shares for cash consideration. The number of equity shares pursuant to the pre-IPO placement will be reduced from the fresh issuance. According to market sources, the company would raise Rs 150-160 crore from the IPO.