Exxaro Tiles IPO: Opens today; Key Details investors should know

Exxaro Tiles IPO: The initial public offering (IPO) of Exxaro Tiles, a leading manufacturer of vitrified tiles, will open for subscription today, i.e., on Wednesday, August 4, 2021, at a price band of Rs 118-120 per share. The offer will be available for subscription till Friday, August 6, 2021.

Through the offer, Exxaro Tiles aims to raise Rs 161.08 crore. Investors can bid for a minimum of 125 equity shares and in multiples of 125 equity shares thereafter. The offer includes a reservation of up to 2,68,500 equity shares for the company's employees, which will be issued at a discount of Rs 12 to the final issue price.

The initial public offering comprises of up to 1,342,4000 equity shares comprises a fresh issue of up to 1,11,86,000 equity shares and an offer-for-sale of up to 22,38,000 equity shares by Dixitkumar Patel.

Exxaro Tiles will utilise the net proceeds from the fresh issue for repaying the debt of Rs 50 crore, and working capital requirements of Rs 45 crore.

Pantomath Capital Advisors is the book running lead manager to the issue. The equity shares will be listed on NSE and BSE.

Besides, Vitrified tiles manufacturer Exxaro Tiles has raised Rs 23.68 crore from two anchor investors on August 3, ahead of issue opening. The company has allocated 19,73,325 equity shares to anchor investors at a price of Rs 120 per share. The anchor investors are Quant Mutual Fund and AG Dynamic Funds. Quant Mutual Fund through its Quant Active Fund and Quant Small Cap Fund bought 7,78,250 equity shares each, and AG Dynamic Funds acquired 4,16,825 equity shares.

Exxaro Tiles is primarily engaged in the business of manufacturing and marketing vitrified tiles used majorly for flooring solutions catering to residential and commercial segments. It currently has over 2,000 dealer networks across 27 states.