Global Surfaces IPO subscription is opening on March 13, 2023. According to the Red Herring Prospectus, the IPO consists of a fresh issue of 8,520,000 shares along with an offer for the sale of 2,550,000 shares. The Equity Shares have a face value of Rs 10 each. This is a main board IPO and will be listed in both the exchanges – BSE and NSE. The retail investors shared offered Not less than 35% of the Net Offer.
The total number of shares offered in this IPO is 11,070,000 equity shares. Withing an offer for sale (OFS) promoters and promoter groups are selling 2,550,000 equity shares.
Global Surfaces IPO – The Company Business Description
Global Surfaces is engaged in the business of manufacturing engineered quartz and processing natural stones. Natural stones are produced by complex geological processes while Engineered quartz is a composite material made up of crushed stone bonded by an adhesive such as resin.
- Currently, the company has two manufacturing units in India – one located at RIICO Industrial Area, Bagru Extn, Bagru, Jaipur, Rajasthan, and the other at Mahindra World City SEZ, Jaipur, Rajasthan.
- The products are mainly used in flooring, wall cladding, countertops, cut-to-size, and other items in both the commercial and residential industries.
- The company supplies its products in India as well as globally
- About 99% of its revenues came from exports during the Fiscals 2020, 2021, and 2022.
- Global Surfaces mainly exports its products to countries such as Canada, Australia, and the Middle East where the demand for these products is relatively higher than in India.
- The company is consistently expanding its product portfolio by developing new and innovative designs.
Global Surfaces Founders and Leadership team
Mr. Mayank Shah is the promoter and Managing Director of the company. Mr. Shah holds a Bachelor’s degree in Commerce from the University of Calcutta and has about 18 years of experience in the natural stone and engineered stone industry.
Sweta Shah is the Executive Director of the Company. She holds a Bachelor’s degree in Commerce from the University of Calcutta. She has an experience of 2 years working as a Chief Executive Officer in the Company
Global Surfaces Revenue and Profit
Global Surfaces registered a strong growth of CAGR of 21.04% in the last 11 years in revenue from operations. The revenue from the operation of the company has grown from INR 232.89 Million in Fiscal 2011 to INR 1903.13 Million in Fiscal 2022 despite being impacted by COVID-19 in Fiscal 2021. However, the revenue from operation during the period of FY 2020 to FY 2022 remains flat – INR 1632.91 million in FY 2020 to INR 1903.13 million in FY 2022.
Global Surfaces IPO Review : Financial Snapshot
| All amounts in INR Million (Year ended March 31) | 2020 | 2021 | 2022 | September 30 , 2022 |
| Revenue Operation | 1,632.91 | 1,753.71 | 1,903.13 | 979.78 |
| Total Income | 1,657.80 | 1,790.04 | 1,983.57 | 992.48 |
| EBITDA | 403.16 | 474.33 | 418.04 | 192.30 |
| EBITDA Margin (%) | 24.69 | 27.05 | 21.97 | 19.63 |
| Profit After Tax | 209.64 | 339.32 | 356.34 | 135.88 |
| PAT Margin (%) | 12.84 | 19.35 | 18.72 | 13.87 |
| Earnings Per equity Share-Diluted | 6.19 | 10.02 | 10.52 | 4.01 |
| Net Cash from Operating Activities | 536.88 | 321.44 | 281.90 | 201.28 |
| Debt/Equity Ratio | 0.83 | 0.38 | 0.28 | 0.34 |
| RoE % | 32.51 | 34.47 | 26.59 | 9.12 |
| ROCE (%) | 32.95 | 35.75 | 20.85 | 7.89 |
Objective Behind the Global Surfaces IPO
- Global Surface will not receive any amount from the net proceeds of the Offer for Sale. This shall be received by the Selling Shareholders.
- Out of the net proceeds of the fresh issue of the IPO, the company is planning to spend INR 900 million to invest in Global Surfaces FZE for part-financing its capital expenditure requirements for the setting up of the Proposed Facility.
- The rest amount will be utilized for General Corporate Expenses
Global Surfaces IPO Review: Do you invest?
- Global Surfaces Global Surfaces FZE intends to establish a dedicated unit for manufacturing engineered quartz in Dubai, UAE.
- The company has a decent growth in revenue from the operation.
- Profit after tax has also witnessed strength during the period from FY 2020 to FY 2022.
- ROCE and ROE of the company are above 20 over the period.
- Net cash inflow is also looking good.
- The company has a diverse portfolio of stones and the demand for stones is likely to go up globally.
- The natural and engineered stone market is estimated to be $65,746 million in 2022 and is forecast to reach $ 114,504 million by 2032.
- However, Global growth is forecast slow during 2023 and 2024. Though the Indian economy is relatively strong, the prolonged rising interest rate will affect the housing sector.
- Globally, the rising interest rate will affect the housing market for a long time.
- Though the company is fundamentally strong, I would like to be cautious or avoid this IPO at this moment till the company bounces back.
Global Surfaces IPO Details
| Global Surfaces IPO Details | Global Surfaces IPO Date, Price and other details |
| Global Surfaces IPO Date | Mar 13, 2023 to Mar 15, 2023 |
| IPO Price | ₹133 to ₹140 per share |
| IPO Allotment date | Mar 20, 2023 |
| Refunds Initiation date | Mar 21, 2023 |
| Credit of Shares to Demat Account | Mar 22, 2023 |
| IPO Listing Date | Mar 23, 2023 |
| Offer for Sale | 2,550,000 equity shares |
| IPO Issue Size (Fresh Issue) | 8,520,000 equity shares |
| Minimum bid (lot size) For retail investor | 1 lot of 100 shares Investment of ₹14,000 |
| Maximum bid (lot size) For retail investor | 14 lot of 1400 shares Investment of ₹196,000 |
| Retail Shares Offered | Not less than 35% of the Net Offer |
| Minimum bid (lot size) S-HNI investor | 15 lot of 1500 shares Investment of ₹210,000 |
| Minimum bid (lot size) B-HNI investor | 72 lot of 7200 shares Investment of ₹1,008,000 |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
| Face Value | INR 10 per share |
| Listing on | BSE and NSE |
| Promoters | Mr. Mayank Shah is the promoter |
Global Surfaces IPO: Lead Managers and Contact
| Contact Details | Global Surfaces IPO Lead Managers |
| Global Surfaces Limited Plot No. PA-10-006, Engineering and Related Industries SEZ, Mahindra World City, Sanganer Jaipur – 302 037 Phone: 0141-7191000 Email: info@globalsurfaces.in Website: http://www.globalsurfaces.in/ | 1. Unistone Capital Private Limited |
Global Surfaces IPO Allotment Status
Global Surfaces IPO Allotment status will be available on BIGSHARE SERVICES PRIVATE LIMITED. To know your allotment status, get ready with your PAN number and click on this link. You may also reach out to Phone: +91-22-6263 8200, Email: ipo@bigshareonline.com
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