The Global Surface Ltd IPO will open for subscription on March 13th and close on March 15th. The price range for the IPO has been set at Rs 133-140 per share. The anchor bids start on March 10th.
The Global Surface Ltd IPO will open for subscription on March 13th and close on March 15th. The IPO price range has been set at Rs 133-140 per share and anchor bids will start on March 10.
The grant will take place on March 20th and the shares will be listed on the stock exchanges on March 23rd. Unistone Capital Pvt Ltd is the sole lead book running manager of the offering.
Global Surface plans to raise funds through an issuance of 8.52 million new shares and an offer to sell (OFS) of up to 2.55 million shares from its existing shareholders and promoters.
Promoter Mayank Shah will sell up to 1.4 million shares while Sweta Shah will sell 1.15 million shares of OFS. In terms of the upper size of the price range, the company plans to raise around Rs 154.98 crore.
Proceeds from the re-issuance of up to Rs 90 crore will be used to invest in its Global Surface FZE arm to set up a manufacturing facility in Dubai. The total estimated cost of constructing the facility is Rs 150.74 crore. Upon completion of the proposed expansion plans, the new unit is expected to have an estimated installed capacity of 622,896 sqm. M/ annum and is expected to be operational from FY 2023-24.
Global Surface specializes in the processing of natural stones and the production of technical quartz. These natural stones are the result of complicated geological processes and include a wide variety of products including but not limited to granite, limestone, marble, slate, quartzite, onyx, sandstone, travertine and other materials excavated from the earth.
The company’s financial performance was disappointing as it reported falling margins. In fiscal 2022, the company’s revenue was Rs 190.31 crore compared to Rs 175.37 crore in the previous year. Net profit for the period was Rs 35.63 crore versus Rs 33.93 crore for the previous year. However, the EBITDA margin fell from 27.05 percent in the previous year to 21.97 percent.
As of September 2022, the company’s net debt was Rs 50.68 crore compared to Rs 37.29 crore in March 2022. According to Manan Doshi, co-founder of unlistedarena.com, the P/E ratio is in the upper range of the issue price. based on the key figures for fiscal year 2022, after accounting for the new edition, is about 16 times.
“If we extrapolate FY23 earnings on an annualized basis and include fully diluted paid-in equity post IPO, the offering price comes in at a P/E ratio of around 21.84 given the expected stock price of Rs 175 and earnings per share of Rs 8 .01 rupees taken into account. If we take into account the FY22 earnings the P/E is 16.64 considering the expected stock price of Rs 175 and EPS of Rs 10.52,” said Manish Khanna, Co-Founder of Unlisted Assets.
Global Surfaces Gray Market Premium (GMP) stands at Rs.35 as of March 10, according to market sources. Considering the output tape price of Rs 133-140, the expected list price could be Rs 175 (top tape price + GMP). The IPO could bring stock market gains of up to 25 percent, Khanna added.
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