MUMBAI: Exxaro Tiles Ltd, manufacturer of vitrified tiles, has obtained approval from the Securities Exchange Board of India (Sebi) to raise funds via an Initial Public Offering (IPO).
In March, the firm had filed a draft prospectus on red herring with Sebi. Gujarat-based Exaaro plans to offer 13.42 million shares, including a new issue of 11.19 million shares and a sell offer of up to 2.24 million shares by Dixit Kumar Patel.
The proceeds of the issue will be used to repay / prepay loans, finance working capital requirements and for general corporate needs.
As of December, the company had totaled secured borrowings, long term and short term, of Rs152.58 crore.
Exxaro Tiles has two production sites, with a combined production capacity of approximately 13 million square meters. A unit based in Vadodara, Gujarat, has a production capacity of 4.7 million square meters per year. The other, located in Himmatnagar in Gujarat, has an acquired infrastructure of 120 acres of land and an installed production capacity of 9.4 million square meters per year.
For fiscal year 2020, the company reported income of Rs243.96 crore while net profit stood at Rs11.26 crore.
Panthomath Capital Advisors is the primary manager of the problem.
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