Engineered quartz manufacturer Global Surfaces made a good debut with 17 percent premium on March 23, tracking positive mood in the markets. It was on expected lines given the good subscription numbers, and recovery in equity markets, though there are concerns with respect to falling operating margin.
The stock opened at Rs 163 on the BSE against the issue price of Rs 140 per share, while the opening tick on the NSE was Rs 164.
The natural stones processing company has received 12.21 times subscription to its maiden public issue which was opened for bidding during March 13-15, 2023. This was the second public issue in the current calendar year after Divgi TorqTransfer Systems.
The initial public offering fetched Global Surfaces Rs 154.98 crore which included a fresh issuance of shares worth Rs 119.28 crore at the higher end of the price band of Rs 133-140 per share.
The company, which already has two units in Rajasthan, will set up its manufacturing facility for engineered quartz in Dubai, through its subsidiary Global Surfaces FZE.
Natural stones, which are produced by complex geological processes, include a number of products such as granite, limestone, marble, slate, quartzite, onyx, sandstone, travertine, and others that are quarried from the earth.
Cilck Here To Read All IPO Related News
Globally, the natural and engineered stone (combined) market accounted for $65.75 billion in 2022 and is expected to reach $114.5 billion by 2032. In the year 2022, the natural stone segment accounted for a major 59 percent of the market share with $38.83 billion while the contribution of engineered stone segment stood at $26.917 billion.
Global Surfaces has registered a 5.2 percent growth in consolidated profit for FY22 at Rs 35.7 crore as compared to the year FY21. Revenue from operations in the same period grew by 8.5 percent to Rs 190.3 crore, but EBITDA (earnings before interest, tax, depreciation and amortisation) declined nearly 12 percent to Rs 41.8 crore and margin dropped 502 bps to 21.96 percent compared to FY21.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
