Exxaro Tiles Ltd has decided price band for its initial public offering (IPO) at Rs 118-120 a share. On 4 August, IPO will open and close on 6 August. The company will issue 13.42 million shares comprising a fresh issue of 11.19 million shares and an offer for sale of up to 2.24 million shares by Dixit Kumar Patel. At the upper-end price band of Rs 120, the firm will raise approximately Rs 161 crore.

Proceeds from the new issue would be utilized towards repaying/prepay of borrowings, fund its working capital requirements besides using it for general corporate purposes. As of December 2020, the company had total secured borrowings (long term and short term) of Rs 152.58 crore.

ETPL has two production facilities and has a combined production capacity of around 13 million sq. m.
Exxaro Tiles is engaged in double-charged vitrified tiles (DCVT) and Glazed Vitrified Tiles (GVT). Exxaro unit 1 is based in Vadodara, Gujarat. The facility manufactures double charge tiles with a production capacity of 4.7 million sq. m per annum.

Exxaro Unit 2 is located at Himmatnagar in Gujarat. It comprises a vested infrastructure of 120 acres land bank at one location. The largest-ever plant currently using 30 acres of land, state-of-the-art machinery, and facilities under one roof. Installed production capacity is 9.4 Million sq. m per annum

For the fiscal year 2020, the company had total revenue of Rs 243.96 crore against Rs 244 crore a year ago. Net profit for the period stood at Rs 11.26 crore versus Rs 8.92 crore last year.