Global Surfaces Limited IPO Details
The Global Surfaces Limited IPO will begin on March 13 and end on March 15. Rs. 154.98 crore Global Surfaces IPO consists of an initial public offering (IPO) and an offer for sale (OFS) by the company’s promoters and early investors. 85,20 lakh shares worth Rs. 119.28 crore were issued as part of the fresh issue component. The OFS part would also include the distribution of 25,50,000 shares for a total value of 35.70 crore rupees. 110.70 lakh shares worth Rs. 154.98 crore would be issued as part of the entire issue.
Global Surfaces Limited is a company that produces quartz and processes natural stones. It was founded in 1991. Natural stones are formed by intricate geological processes and are extracted from the soil in the form of granite, limestone, marble, slate, quartzite, onyx, sandstone, travertine, and other items.
The business has two locations: one in Mahindra World City SEZ in Jaipur, Rajasthan, and the other at RIICO Industrial Area, Bagru Extn, Bagru, Jaipur, Rajasthan. Both units are involved in the product manufacturing and processing. The products are exported to United States of America, Canada, Australia and Middle East.
Objective of the Issue
It is proposed that the Fresh Issue’s net proceeds be used as follows:
- Investment in the wholly owned subsidiary, Global Surfaces FZE for part-financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for engineered quartz at The Jebel Ali Free Zone, Dubai, United Arab Emirates (UAE).
- General Corporate Purpose
| Global Surfaces Limited IPO | Details |
|---|---|
| Price Band | ₹133 to ₹140 per share |
| Face Value | ₹ 10 per share |
| Issue Size | 154.98 Crs |
| Fresh Issue | 119.28 Crs |
| Offer for Sale | 35.70 Crs |
| Opening Date | 13 Mar 2023 |
| Closing Date | 15 Mar 2023 |
| Allotment | 20 Mar 2023 |
| Initiation of Funds | 21 Mar 2023 |
| Credit to Demat | 22 Mar 2023 |
| Listing Date | 23 Mar 2023 |
| Pre Issue Share Holding | 99.35% |
| 1 lot | 100 Shares (₹ 14,000/-) |
| Retail Quota | 35% |
| QIB Quota | 50% |
| NII Quota | 15% |
| Retail (Min) | 1 Lot (100 Shares ~ ₹ 14,000/-) |
| Retail (Max) | 14 Lots (1400 Shares ~ ₹ 1,96,000/-) |
| S-HNI (Min) | 15 Lots (1500 Shares ~ ₹ 2,10,000/-) |
| B-HNI (Min) | 72 Lots (7200 Shares ~ ₹ 10,08,000/-) |
| Draft Red Herring Prospectus | DRHP |
| Red Herring Prospectus | RHP |
| Grey Market Premium | Click Here |
| Allotment Status | Check Here |
The Global Surfaces Limited IPO’s bid period is from March 13, 2022, at 10:00 A.M., to March 15, 2022, at 5:00 P.M. UPI Mandate confirmation must be received by 5 PM on the day the issue closes.
EBITDA & PAT (in Crs)
EBITDA– Earnings Before Interest Tax Depreciation & Amortization PAT – Profit After Tax
Total Assets, Share Capital and Borrowings (in Crs)
Revenue Growth (in Crs)
Peer Comparison
| Particulars | Global Surfaces Limited | Pokarna Limited |
|---|---|---|
| Face Value | 10 | 2 |
| EPS | 10.52 | 25.25 |
| PE | 13.31 (taking 140 as the listing price) | 29.53 |
| RoNW% | 26.59 | 17.67 |
| Revenue from Operations (in ₹ Crs) | 190.31 | 650.19 |
| EBITDA Margin (%) | 19.63 | 24.87 |
| PAT Margin (%) | 13.87 | 11.55 |
| ROE | 9.12 | 10.63 |
| Debt to Equity Ratio | 0.34 | 1.03 |
Analysis:
If we analyse the financial parameters of Global Surfaces Limited, then it can be seen that the firm’s EBITDA and PAT incresed from FY20 to FY21, however there is a slight drop in the EBITDA and PAT in FY22 when compared to FY21. Total assets of the company are continuously increasing and borrowings are decreasing on YOY bais. This firm’s revenue growth is also good.
Taking the EPS as 10.52 as per RHP, PE ratio is 13.31 which is on the lower side in comparison to the Industry PE of 22.37 and PE 29.33 of its peer Pokarna Ltd. This simply depicts that the IPO price seems to be reasonably priced but we cannot make any decision without considering other fundamental parameters.
RoNW of 26.59% is lower than its peer and the EBITDA margin of 19.63% is greater than its only listed peer. Also if you compare its own Pat Margin growth then it can be seen that it is doing better than its only listed peer.
Overall, fundamentals of the firm seems good with low levels of debt but due to small size of the issue, it might not be a good long term choice. In short term, market condition is not in support for its listing as the market is going through a decent correction so risk taking traders can check the grey market premium and subscription status in order to decide to apply or not.
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