Vitrified tiles maker Exxaro Tiles' initial public offer (IPO) was subscribed more than four times on Wednesday, the first day of the bidding process. The IPO, which began for subscription on Wednesday and will end on Friday, August 6, is expected to raise Rs 161 crore for the firm.
For the public offering, the Gujarat-based company has established a price range of Rs 118-120 per share.
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By 4:25 pm, the IPO had received 4.95 crore bids against the issue size of 1.15 crore shares, marking a subscription of 4.33 times, data from NSE showed.
While the portion reserved for qualified institutional buyers saw subscription of 48 percent, that for non-institutional investors received 2 percent bids. The quota reserved for retail investors was subscribed 4.31 times.
The IPO comprises fresh issuance of shares worth Rs 134 crore and an offer for sale of shares worth Rs 27 crore. At the upper end of the price band, bidding for one lot of 125 shares will cost investors Rs 15,000.
The company's management plans to use the proceeds from the IPO to pay its existing long-term debt of around Rs 50 crore, and for working capital requirements and general corporate purposes.
“In our existing business model, we are more in the domestic market, say around 86 percent, and the remaining 14 percent of the topline is in exports. We are targeting to take our revenue growth from the existing level to 4-5 times in the next four to five years," Himanshu Shah, CFO, Exxaro Tiles, told CNBC-TV18.
"We are targeting 20 percent from exports from the coming turnover and the remaining will be our domestic market as we are stronger there,” he said.
On Tuesday, Exxaro Tiles had raised Rs 23.68 crore from two anchor investors, allocating 19.73 lakh shares at Rs 120 apiece.
First Published: IST