Global Surfaces lists at over 17% premium, beats grey market expectations
- Global Surfaces debuted at ₹164 on the stock exchanges, as against the issue price of ₹140 per share.
- Sensex was lower by 274 points at 57,937 in the early morning trade on Thursday.
- The market capitalisation of the company stands at ₹690 crore.
AdvertisementNatural stone processor Global Surfaces listed at a premium of 17% on the National Stock Exchange on Thursday. It debuted at ₹164 as against the issue price of ₹140 per share on NSE.
The market capitalisation of the company stands at ₹690 crore.
The IPO witnessed positive listing despite negative cues from the broader market after a 25 basis point rate hike by the US Fed’s Federal Open Market Committee (FOMC). The market had been expecting a pause due to the banking sector crisis in the US.
Benchmark index Sensex was lower by 274 points or 0.47% at 57,937 in the early morning trade on Thursday.
Global Surfaces is the third stock to be listed on exchanges in 2023. The issue was subscribed 12.21 times on its last day.
The listing gains were above expectations as the grey market indicated a premium of 11% to the IPO price. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.
Funds raised through the IPO will be used towards setting up the company's proposed facility Global Surfaces FZE in Dubai.
|IPOs in 2023||Issue price||Listing day gain||Current market price|
|Radiant Cash Management||₹94||₹10.70||₹95.15|
|Divgi TorqTransfer Systems||₹590||₹15.15||₹636.40|
Understanding Global Surfaces’ business
The company is engaged in the business of processing natural stones and manufacturing engineered quartz. Global Surfaces processes stones like granite, limestone, marble, quartzite and travertine.
The products of the company have applications in flooring, wall cladding, countertops and other items. These products are widely used for commercial and residential industries.
Global Surfaces has two units, both located in Rajasthan. Majority of its operational revenues is derived from exporting its products to the US. In FY22, the revenue generated from exports to the US represented 99.13%. It also exports to Canada, Australia and the Middle East.
The company believes its sales from the US may decline because of rising competition and strict regulatory action.
“Our sales from this region may decline as a result of increased competition, regulatory action, pricing pressures, fluctuations in the demand for or supply of our products or services, the outbreak of an infectious disease such as Covid-19, anti-dumping/trade policies or geopolitical tensions. For instance, sales of engineered quartz surface products from India are presently subject to anti-dumping duty of 3.19 applicable from July 2022 and countervailing duty ranging from 2.34% to 1.57% with effect from June 2020,” said the company in its RHP.
As of September 30, 2022, its total borrowings stood at ₹50.5 crore.
|Particulars||Revenue from operations||Net profit||EBITDA margin|
|FY22||₹190 crore||₹35.63 crore||21.97%|
|FY21||₹175 crore||₹33.93 crore||27.05%|
|FY20||₹163 crore||₹20.96 crore||24.69%|
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