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Global Surfaces Limited plans to raise Rs 154.98 crore through an initial public offering. The subscription for the IPO opens on March 13 and closes on March 15. The price band is fixed Rs 133 – 140 per equity share. The face value is set at Rs 10 apiece.
The IPO comprises of fresh issue of shares aggregating up to Rs 119.28 crore and offer for sale totalling up to Rs 35.7 crore.
Company Summary
Global Surfaces Limited is engaged in the business of processing natural stones and manufacturing engineered quartz. The company has two units, one located at RIICO Industrial Area, Jaipur, Rajasthan and the other at Mahindra World City SEZ, Jaipur, Rajasthan for processing and manufacturing of its products.
The company’s Unit I is strategically located in close proximity of the key raw material i.e. blocks of natural stones, which helps the company in sourcing their raw materials and also minimize the logistics and transportation cost.
The company’s Unit II is dedicated towards manufacturing engineered quartz. This Unit is also equipped with a R&D facility to develop, improve and test their products which assists the company in keeping pace with the ever evolving market trends and demands. Both the Units are located in close proximity.
The company’s products have application in flooring, wall cladding, countertops, cut-to size and other items. The firm’s products are used in both commercial and residential industry and are sold in domestic and overseas markets. Majority of the company’s operational revenues comprise of export sales. The company is focused on exporting their products and their important export markets are the US, Canada, Australia, and Middle East.
The company is promoted and managed by its Managing Director and Promoter, Mayank Shah, who has been instrumental in the growth of the company. Shah has played a key role in reviving and turning around a sick and closed unit (i.e. Unit I) into a profitable venture, facilitating technology upgradation in the production process, diversification of business into engineered quartz and ventured into previously untapped markets.
Company Strengths
- Wide range of product portfolio and multiple designs.
- Established presence in international markets.
- Professional management team with committed and qualified employees.
- Experienced and result oriented promoter.
- Top-notch quality control processes for inspecting the raw materials as well as the final products thereby reducing loss.
- In- house R&D facility with a dedicated team at Mahindra World City SEZ, Jaipur, Rajasthan (Unit II) where the company focuses on developing good quality and cost-efficient engineered quartz.
Company Financials
Period Ended | 6MFY23 | FY22 | FY21 | FY20 |
Total Assets (Rs in crore) | 280.2 | 236.48 | 159 | 128.73 |
Total Revenue (Rs in crore) | 99.25 | 198.36 | 179 | 165.78 |
Profit After Tax (Rs in crore) | 13.59 | 35.63 | 33.93 | 20.96 |
EBITDA (Rs in crore) | 19.23 | 41.80 | 47.43 | 40.32 |
EBITDA margin (%) | 19.63% | 21.97% | 27.05% | 24.69% |
ROCE (%) | 7.89% | 20.85% | 35.75% | 32.95% |
ROE (%) | 9.12% | 26.59% | 34.47% | 32.51% |
Debt-to-Equity ratio | 0.34 | 0.28 | 0.38 | 0.83 |
Purpose of the IPO
- The proceeds from fresh issue of shares will be utilised for investing in their wholly-owned subsidiary, Global Surfaces FZE, for part-financing their capital expenditure requirements aggregating to Rs 90 crore. The company plans to set up a manufacturing facility for engineered quartz at The Jebel Ali Free Zone, Dubai, United Arab Emirates.
- The company also plans to use the proceeds from fresh issue of shares for general corporate purposes.
- The proceeds from the Offer for Sale (OFS) shall be received by the selling shareholders after deducting the offer related expenses.
Company Promoters
Mayank Shah is the promoter of the company.
IPO Details
IPO Opening Date | March 13, 2023 |
IPO Closing Date | March 15, 2023 |
Face Value | Rs 10 per share |
Price Band | Rs 133 to Rs 140 per share |
Lot Size | 100 Shares |
Issue Size | 1,10,70,000 shares aggregating up to Rs 154.98 crore |
Fresh Issue | 85,20,000 shares aggregating up to Rs 119.28 crore |
Offer for Sale | 25,50,000 shares aggregating up to Rs 35.7 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 100 | Rs 14,000 |
Retail (Maximum) | 14 | 1400 | Rs 1,96,000 |
Small HNI (Minimum) | 15 | 1,500 | Rs 2,10,000 |
Large HNI (Minimum) | 72 | 7,200 | Rs 10,08,000 |
Allotment Details
Basis of allotment | March 20, 2023 |
Initiation of refunds | March 21, 2023 |
Credit of shares to demat account | March 22, 2023 |
Listing date | March 23, 2023 |