Shares of Global Surfaces made a stellar debut on the domestic stock exchanges on Thursday, listing at ₹164 apiece on the National Stock Exchange (NSE), a premium of 17.14% against the issue price of ₹140. On the Bombay Stock Exchange (BSE), the shares of the engineered quartz manufacturer opened at ₹163, 16.42% higher than the issue price.
Post listing, Global Surfaces rallied as much as 23% to hit an intraday high of ₹172.20 on the NSE, while it touched a high of ₹171.15 on the BSE. On the volume front, a combination of 55.16 lakh shares changed hands over the counter on the BSE and the NSE, while the market capitalisation climbed to ₹724.73 crore.
Global Surfaces, engaged in processing of natural stones and manufacturing engineered quartz, raised ₹155 crore via initial public offering (IPO), which includes fresh issue of 85.20 lakh equity shares and offer for sale of up to 25.5 lakh shares by promoters and existing shareholders. The issue was subscribed 12.21 times, which opened for bidding during March 13-15. The company raised ₹119.28 crore from fresh issue of equity shares at the higher end of the price band of ₹133-140 per share.
The IPO received an overwhelming response from high net worth individual (HNI) investors, with portion reserved for them subscribing by 33.10 times, followed by qualified institutional buyers by nearly 9 times, and retail investors with 5.12 times. The company reserved half of the issue size for qualified institutional buyers (QIBs), up to 35% for retail investors, and the remaining 15% for Non Institutional Investors (NIIs).
The company intends to use capital raised through fresh issuance of equity shares for setting up a manufacturing facility -- Global Surfaces FZE -- in Dubai. Incorporated in 1991, Global Surfaces has two units in Rajasthan, one located at RIICO Industrial Area, Jaipur, and the other at Mahindra World City SEZ, Jaipur. Both units engage in the processing and manufacturing of the products.
As per the document filed with SEBI, the company posted a 5.2% growth in consolidated profit at ₹35.7 crore for FY22 as compared to the previous fiscal. Revenue from operations rose 8.5% to ₹190.3 crore, while EBITDA (earnings before interest, tax, depreciation and amortisation) fell nearly 12% to ₹41.8 crore. The EBITDA margin slipped by 502 basis points to 21.96% in FY22.
Global Surfaces is the fourth IPO to make debut on the bourses in the current calendar year after Divgi TorqTransfer Systems, Sah Polymers, and Radiant Cash Management Services.
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