Vitrified tiles maker Exxaro Tiles files for Rs 160 crore IPO

Gujarat-based vitrified tiles manufacturer Exxaro Tiles has filed its draft red herring prospectus (DRHP) with capital market regulator SEBI for its initial public offering. The company is going to raise between Rs 150 - Rs 160 crore, market sources say.

The public offer of 1,34,24,000 equity shares will comprise a fresh issue of 1,11,86,000 equity shares and an offer for sale of 22,38,000 equity shares by the selling shareholder Dixitkumar Patel.

The company, in consultation with the merchant banker, could consider a pre-IPO placement of 22 lakh equity shares. The size of fresh issue will get reduced if the company raises funds through pre-IPO placement.

Exxaro will utilise net fresh issue proceeds for repaying borrowings and working capital requirements.

Promoted by Mukeshkumar Patel, Dineshbhai Patel, Rameshbhai Patel and Kirankumar Patel, Exxaro Tiles commenced business as a partnership firm in 2007-2008 to manufacture frit and thereafter diversified into a manufacturing and marketing of vitrified tiles.

The company currently has more than 2,000 registered dealers across 27 states. It also supplies products in over 13 countries including Poland, UAE and Bosnia.

It has two state-of-the-art manufacturing facilities located at Padra and Talod in Gujarat, having a installed production capacity of 1.32 crore square meter per annum.

In FY20, Exxaro Tiles reported revenue at Rs 240.74 crore with EBITDA of Rs 42.96 crore and profit after tax of Rs 11.26 crore. Its revenues from exports have seen a CAGR growth of 150.87 percent during FY18-FY20.

The equity shares will be listed on NSE and BSE. Pantomath Capital Advisors is appointed as lead manager to the issue.