About the company:
· IPO Details: Global Surfaces Limited
Issue Open Date | 13th March 2023 |
Issue Close Date | 15th March 2023 |
Price Band (Rs.) | 133–140 |
Lot Size | 100 Shares and in multiples thereof |
Issue Size (Rs.) | 154.98 crores |
· Object of the Issue:
The company proposes to utilize the Net Proceeds for making investments 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 and general corporate purposes.
· Business Overview:
The Company is engaged in the business of processing natural stones and manufacturing engineered quartz. Natural stones are produced by complex geological processes and include a number of products such as granite, limestone, marble, slate, quartzite, onyx, sandstone, travertine, and others that are quarried from the earth. Natural stones are widely known for their uniqueness, aesthetic appeal, texture, color, and composition as no two natural stones are the same. Engineered quartz on the other hand, is an example of engineered stone used in the countertop industry
The company’s manufacturing takes place in 2 units, Unit-I which is located at RIICO Industrial Area, Jaipur, and Unit-II located at Mahindra World City SEZ, Jaipur, both in Rajasthan. Based on application, the company’s market has applications in flooring, wall cladding, cut-to-size items, and other items. These products are used in both residential and commercial industries.
Key Strengths:
· Consistent Growth: The company has grown from a single-category to a multi-category stone manufacturing company. The company’s revenue from operations grew from INR 232.89 Million in Fiscal 2011 to INR 1903.13 Million in Fiscal 2022, registering a CAGR of 21.04% in the last 11 years.
· Established presence in international markets: The various regions of the USA remain the primary focus in international markets for the company. The export business constitutes 99.13% of operating revenue in the Fiscal 2021-22 and has grown at 21.60% CAGR over the last 11 years. The company has sold its products in the United States of America, Canada, Australia, and the Middle East.
· Financial Snapshot – (Just a table showcasing important elements of its P&L with QoQ% & YoY% difference)
Particulars | FY20 | FY21 | FY22 | Six-month period as on 30.09.2022 |
Revenue from Operations (Rs. in crore) | 163.29 | 175.37 | 190.31 | 97.98 |
EBITDA (Rs. in crore) | 42.81 | 50.95 | 49.85 | 19.23 |
EBITDA Margin (%) | 26.21% | 29.05% | 26.19% | 19.63% |
Profit (Rs. in crore) | 20.96 | 33.93 | 35.63 | 13.59 |
Profit Margin (%) | 12.84% | 19.35% | 18.72% | 13.87% |
ROCE (%) | 54.36% | 48.02% | 26.61% | 7.89% |
ROE (%) | 32.51% | 34.47% | 26.59% | 9.12% |
Debt-to-Equity Ratio | 0.83 | 0.39 | 0.28 | 0.34
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· IPO Review: Not Rated
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