Exxaro Tiles Rs 161 Crore IPO Opens Today. Should You Invest?

Exxaro Tiles shares sale via initial public offering (IPO) opened for subscription today and was subscribed 89 per cent within the first hour of opening, data from the National Stock Exchange showed. Exxaro Tiles shares were in high demand among the retail individual investors as the portion reserved for them was subscribed 1.2 times. Exxaro Tiles' Rs 161 crore IPO comprises of fresh issue of Rs 134.23 and an offer for sale of Rs 26.86 crore and the company is selling shares in the price band of Rs 118-120 per share..Retail investors can bid for minimum one lot of 125 shares up to a maximum of 13 lots. At the upper price band one lot of Exxaro Tiles shares in the IPO will cost Rs 15,000..Exxaro Tiles was incorporated in 2008 and is involved in the marketing and manufacturing of vitrified tiles. The company manufactures double charge vitrified tiles (double layer pigment) as well as glazed vitrified tiles made from ceramic materials such as quartz, clay, and feldspar..Exxaro Tiles' product portfolio comprises more than 1000 different designs of tiles in six sizes. Galaxy Series, Topaz Series, and High Gloss Series are some of the well-established products of the firm. The company also supplies its products to large infrastructure projects such as educational, hotels, educational institutions, government, hospitals, among others..Arihant Capital has a subscribe rating on Exxaro Tiles IPO. The brokerage firm in a research note said, "At the upper band of INR 120, the issue is valued at P/E 35(x) its FY21 diluted EPS of INR 3.4. The organized tiles industry has been gaining market share post GST implementation and midsized companies having stronger balance sheet and stable product portfolio are likely to deliver higher growth potential going ahead. We like the company backed by its wide spread dealer network, in house manufacturing facility and wide product portfolio having 1000+ designs. Company is continuously focusing on enhancing brand value and Continue to improve operating efficiencies through technology enhancements and setting up own gas station which will help in sustaining margin going ahead. Based on above factors we recommend SUBSCRIBE to the issue of Exxaro Tile."

Exxaro Tiles Rs 161 Crore IPO Opens Today. Should You Invest?

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