- Global Surfaces is all set to open its IPO on March 13 and will close on March 15.
- The price band of the IPO is set at ₹133-140 per share.
- The company is engaged in the business of processing natural stones and manufacturing engineered quartz.
- The company is looking to raise a fresh issue of ₹119.28 crore along with an offer for sale (OFS) of up to ₹35.7 crore.
The company is engaged in the business of processing natural stones and manufacturing engineered quartz. Global Surfaces processes stones like granite, limestone, marble, quartzite, travertine etc.
The products of the company have applications in flooring, wall cladding, countertops, cut to size and other items. These products are widely used for commercial and residential industries.
The company is looking to raise ₹119.28 crore via fresh issue; along with an offer for sale (OFS) of up to ₹35.7 crore worth equity shares – to be sold by promoters and shareholders.
Shareholders selling their shares through OFS include Mayank Shah who would sell 14 lakh shares and Sweta Shah who would sell 11.5 lakh shares.
Funds raised through the IPO will be used towards setting up the company's proposed facility Global Surfaces FZE in Dubai.
99% of revenues come from the US
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 counter-vailing duty ranging from 2.34% to 1.57% with effect from June 2020,” said the company in its RHP.
Another risk associated with the company’s growth is its dependence on a few customers for a major part of its revenues. “Our sales are concentrated to a few customers with our top 3 customers contributing 67.38%, 73.08%, 65.41% and 60.11% respectively and our top 10 customers contributing 83.63%, 86.04%, 82.77% and 83.14% respectively, of our revenues during the fiscal 2020, 2021 and 2022 and the period ended September 30, 2022, respectively,” said the company in its red herring prospectus.
As of September 30, 2022, its total borrowings stood at ₹50.5 crore.
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