Exxaro Tiles IPO: Issue subscribed 22.68 times

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Initial public offer by Gujarat based Exxaro Tiles, manufacturer of vitrified tiles in India, got subscribed 22.57 times on the final day of the bidding process on August 6. The public offer received bids of 25,96,52,625 shares against the offered 1,14,50,675 equity shares.

The portion reserved for retail investors was subscribed 39.88 times. While the Qualified Institutional Buyer category was subscribed 17.67 times, the Non-Institutional Investor category was subscribed 5.36 times and employee reserved category was subscribed 2.53 times.

The IPO comprises of a fresh issue of up to 111,86,000 equity shares and an offer for sale of up to 2,238,000 equity shares by selling shareholders. Key brokerage houses like Arihant Capital, SMC Global, Canara Bank Securities, HEM Securities have given recommendations of “Subscribe” to the issue for long term perspective.

Indian ceramic Industry has been growing exponentially during the last couple of years as the industry changes gears including the continuous shift from unorganised to organised, shift in product focus with increasing share of Glazed Vitrified Tiles (GVT) and Polished Glazed Vitrified Tiles (PGVT), growing global penetration of large slabs, implementation of best in class technology and innovation to manufacture products suitable for global markets. Transformational changes such as GST, RERA, eway bill and the like have paved the way for moving the industry from un-organized to organize. This assumes significant importance as the industry has been dominated by unorganised segment.

Pantomath Capital Advisors Private Limited is the appointed lead manager to the offer.