Global Surfaces Ltd’s initial public offering (IPO) will open for subscription on March 13th and close on March 15th. So investors have three days to apply for this IPO. The company has set a price range of €133-140 a share for its IPO and aims to increase €155 crore from this offer.
Global Surfaces Ltd’s initial public offering (IPO) will open for subscription on March 13th and close on March 15th. So investors have three days to apply for this IPO. The company has set a price range of €133-140 a share for its IPO and aims to increase €155 crore from this offer.
Global Surfaces Limited Gray Market Premium (GMP) is adhered to €45, according to market sources. Considering the output tape price of €133-140 could be the expected list price €185 (top band price + GMP).
Global Surfaces Limited Gray Market Premium (GMP) is adhered to €45, according to market sources. Considering the output tape price of €133-140 could be the expected list price €185 (top band price + GMP).
Market observers said that Global Surfaces Ltd IPO is GMP €45, meaning the gray market expects Global Surfaces Ltd €185 ( €140+ €45), which is around 32 percent higher than its price range of €133-140 per share.
Market observers said that Global Surfaces Ltd IPO is GMP €45, meaning the gray market expects Global Surfaces Ltd €185 ( €140+ €45), which is around 32 percent higher than its price range of €133-140 per share.
However, stock market experts claimed that GMP is not an ideal indicator of the success or failure of an IPO. They advised investors to scan the company’s balance sheet and find out the sustainability of the company’s business and earnings model. They also said that GMP is an unregulated number, which is entirely speculative.
However, stock market experts claimed that GMP is not an ideal indicator of the success or failure of an IPO. They advised investors to scan the company’s balance sheet and find out the sustainability of the company’s business and earnings model. They also said that GMP is an unregulated number, which is entirely speculative.
Global Surfaces Ltd reported total sales of €198 crore for the year ended 31 March 2022 with net income after tax of €35 crores. For the six-month period ended September 30, 2022, the company reported sales of €99 crore and profit after tax of €13.6 million.
Global Surfaces Ltd reported total sales of €198 crore for the year ended 31 March 2022 with net income after tax of €35 crores. For the six-month period ended September 30, 2022, the company reported sales of €99 crore and profit after tax of €13.6 million.
“If we extrapolate FY23 earnings on an annualized basis and include fully diluted paid-in equity post IPO, the offering price is approximately 21.84 times earnings when expected stock market price is factored in €175 and EPS from €8.01. If we look at FY22 earnings, the P/E is 16.64 considering the expected listing price of €175 and EPS from €10.52,” said Manish Khanna, co-founder of Unlisted Assets.
“If we extrapolate FY23 earnings on an annualized basis and include fully diluted paid-in equity post IPO, the offering price is approximately 21.84 times earnings when expected stock market price is factored in €175 and EPS from €8.01. If we look at FY22 earnings, the P/E is 16.64 considering the expected listing price of €175 and EPS from €10.52,” said Manish Khanna, co-founder of Unlisted Assets.
The IPO includes the issuance of 85.20 lakh shares and an offer to sell up to 25.5 lakh shares by the promoters – Mayank Shah and Sweta Shah.
The IPO includes the issuance of 85.20 lakh shares and an offer to sell up to 25.5 lakh shares by the promoters – Mayank Shah and Sweta Shah.
The funds raised through new issues will be used to build the Company’s planned facility – Global Surfaces FZE – in Dubai.
The funds raised through new issues will be used to build the Company’s planned facility – Global Surfaces FZE – in Dubai.
“Global Surfaces believes it has a great opportunity in the international market, so it establishes a manufacturing facility in Dubai. Also, they intend to add new products and designs, as well as introduce technology and automation that would support growth and increase operational efficiencies,” said brokerage firm Religare Broking.
“Global Surfaces believes it has a great opportunity in the international market, so it establishes a manufacturing facility in Dubai. Also, they intend to add new products and designs, as well as introduce technology and automation that would support growth and increase operational efficiencies,” said brokerage firm Religare Broking.
Regarding the key risk, the brokerage firm noted two points:
Regarding the key risk, the brokerage firm noted two points:
1) Strong sales dependency on a few customers and the region (USA).
1) Strong sales dependency on a few customers and the region (USA).
2) The company has no long-term agreements/agreements with customers or suppliers and this may affect business operations.
2) The company has no long-term agreements/agreements with customers or suppliers and this may affect business operations.
Half of the issue volume is reserved for qualified institutional buyers, up to 35 percent for retail investors and the remaining 15 percent for non-institutional investors.
Half of the issue volume is reserved for qualified institutional buyers, up to 35 percent for retail investors and the remaining 15 percent for non-institutional investors.
Unistone Capital is the sole book-running lead manager on the issue. The company’s shares are listed on the leading stock exchanges NSE and BSE.
Unistone Capital is the sole book-running lead manager on the issue. The company’s shares are listed on the leading stock exchanges NSE and BSE.
Global Surfaces Ltd is engaged in the processing of natural stone and the manufacture of engineered quartz. The company is a wholly owned subsidiary of Global Surfaces FZE, a Dubai-based company engaged in the manufacture of engineered quartz. The company has two manufacturing facilities in Rajasthan.
Global Surfaces Ltd is engaged in the processing of natural stone and the manufacture of engineered quartz. The company is a wholly owned subsidiary of Global Surfaces FZE, a Dubai-based company engaged in the manufacture of engineered quartz. The company has two manufacturing facilities in Rajasthan.
The views and recommendations made above are those of individual analysts or brokerage firms and not Mint.
The views and recommendations made above are those of individual analysts or brokerage firms and not Mint.
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