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IPO analysis: Exxaro Tiles Limited

Abhinav Lahoti
/ Categories: IPO Analysis
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IPO analysis: Exxaro Tiles Limited

IPO rating: Invest for listing gain   

 About the issue:  

Exxaro Tiles is engaged in the manufacturing and marketing activities of vitrified tiles. The company is coming out with its initial public offering (IPO) of equity shares with a face value of Rs 10 per equity share. The issue size of the company is Rs 161.09 crore, with a fresh issue comprising Rs 134.23 crore while the remaining include the sale of shares worth Rs 26.86 crore by existing investors, according to its red herring prospectus. The price band of the issue has been fixed at Rs 118 to Rs 120 per equity share. The IPO opening date is August 04, 2021, while it will be closing on August 06, 2021. The issue will be listed on the Exchanges on August 17, 2021. The IPO market lot size is 125 shares. A retail-individual investor can apply up to a maximum of 13 lots (1,625 shares or Rs 1,95,000). The net proceeds generated from the IPO will be utilised towards making repayment or prepayment of secured borrowings availed by the company, further meeting the capital requirements and for other general corporate purposes.  

Exxaro Tiles IPO details  

IPO opening date  

August 4, 2021  

IPO closing date  

August 6, 2021  

Issue type  

Book built issue IPO  

Face value  

Rs 10 per equity share  

IPO price  

Rs 118 to Rs 120 per equity share  

Market lot  


Min. order quantity  


Listing at  


Issue size  

1,34,24,000 equity shares of Rs 10
(aggregating up to Rs 161.09 crore)  

Fresh issue  

1,11,86,000 equity shares of Rs 10
(aggregating up to Rs 134.23 crore)  

Offer for sale  

22,38,000 equity shares of Rs 10
(aggregating up to Rs 26.86 crore)  


About the company:  

The company was incorporated in the year 2008. Exxaro Tiles is in the business of manufacturing and marketing activities of vitrified tiles. The company manufactures double-charged vitrified tiles (double layer pigment) and glazed vitrified tiles (GVT) made from ceramic materials i.e. clay, quartz, and feldspar. It has more than 1,000 products in its product portfolio with different designs of tiles in a total of six sizes. Topaz, Galaxy & High Gloss series are some of the well-established products of the company.  

It supplies its products to large infrastructure projects such as residential, educational, commercial, hotels, hospitals, government, builders or developers, religious institutions, etc. It also exports tiles to different countries across the globe i.e. Poland, Bosnia, USA, and others.  

Currently, the company has two state-of-the-art manufacturing facilities in Padra and Talod (both in Gujarat) with an installed production capacity of 1,32,00,000 sq mt per annum. It further has six display centres in six cities along with two marketing offices in Delhi and Morbi (Gujarat).  

Competitive strengths:  

  • It has a variety of vitrified tiles design choices in different sizes.    
  • Large dealer network with 2,000+ registered dealers.  
  • Strong PAN India presence in 27 states of India.  
  • International presence with export to 13+ countries across the globe.  
  • One of the largest manufacturing plants of glazed vitrified tiles in India.  



The company’s EBITDA grew at an 11.86 per cent CAGR between 2019 and 2021, while profit after tax rose at 30.61 per cent during the period.  





Revenue from operations (Rs crore)  




EBITDA (Rs crore)  




 Profit after tax (Rs crore)  




EBITDA margin (per cent)  




RoNW (per cent)  









The company’s top five customers accounted for 36.34 per cent of the revenue while the top 10 clients formed 40.76 per cent of the top line in the fiscal ended March 2021. It earns over 86 per cent of its revenue from the domestic retail and institutional segment through its more than 2,000 registered dealers. Exports contribute the remaining 13.88 per cent of the total revenue. The company's belief that “growth is never a chance, it is the result of passion and perseverance” has helped it to achieve growth. The Group further strives to strengthen its existence in business with successful verticals. Its clientele includes Amul, Patanjali, Lodha, Welspun, and many such institutional clients. On the downside, the company does not have long-term agreements with any of the institutional clients, which gives a blurred view of its order book, going ahead. For sustained expansion, the company requires a considerable amount of operating cash. The inability to manage its working capital needs might have a negative impact on the business. Owing to the above reasons, we recommend investing in the stock IPO for a listing gain. 


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