Exxaro Tiles IPO subscribed 23 times on final day

Vitrified tiles maker Exxaro Tiles' initial public offer (IPO) was subscribed nearly 23 times on Friday, the last day of the three-day bidding process.

By the end of the day, the IPO had received 25.97 crore bids against the issue size of 1.15 crore shares, marking a subscription of 22.68 times, data from NSE showed.

The portion reserved for qualified institutional buyers was subscribed 13.74 times and that for non-institutional investors 2.01 times. The quota reserved for retail investors saw a 17.64 times subscription.

Gujarat-based Exxaro Tiles' IPO was subscribed 10.29 times on Thursday, the second day of bidding, and nearly five times on the previous day.  It was fully subscribed within hours on Wednesday.

The IPO to raise Rs 161 crore had opened on Wednesday. Shares were offered in a price band of Rs 118-120.

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The IPO comprised 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 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.