Exxaro Tiles to Raise Funds via IPO

Exxaro Tiles Ltd, manufacturer of vitrified tiles, has got approval from the Securities Exchange Board of India (Sebi) to raise funds via an initial public offering (IPO). In March, the firm had filed a draft red herring prospectus with Sebi. Gujarat-based Exaaro plans to offer 13.42 million equity shares, comprising a fresh issue of 11.19 million shares and an offer for sale of up to 2.24 million shares by Dixit Kumar Patel. Proceeds from the issue will be used to repay/prepay of borrowings, fund working capital requirements and for general corporate purposes. As of December, the company had total secured borrowings, long term and short term, of Rs152.58 crore. Exxaro Tiles has two production facilities, with a combined production capacity of around 13 million square meters. One unit based is in Vadodara, Gujarat, with a with production capacity of 4.7 million sq. meter per annum. The other, located at Himmatnagar in Gujarat, has a vested infrastructure of 120 acres land bank and installed production capacity is 9.4 million sq. meter per annum. For fiscal 2020, the company reported revenue of Rs243.96 crore while net profit stood at Rs11.26 crore. Panthomath Capital Advisors is the book lead running manager to the issue.