Global Surfaces IPO opens today. GMP, subscription status, key details to know before you apply

Global Surfaces has set IPO price band at ₹133-140 per share

Global Surfaces Ltd, which is into processing natural stones and manufacturing engineered quartz, has launched its initial public offering (IPO) for subscription on Monday, March 13 till Wednesday, March 15. The company has set a price band of ₹133-140 a share. As of 10:40 am on day 1, the issue has been subscribed 0.04x as retail investors' category booked 0.08x, NIIs 0.01x, BSE data showed.

As per market observers, Global Surfaces shares are commanding a premium (GMP) of ₹35 in the grey market today. The shares of the company are expected to list on leading stock exchanges BSE and NSE on March 23, 2023.

Global Surfaces IPO comprises fresh issuance of 85.20 lakh equity shares and an Offer For Sale of up to 25.5 lakh equity shares by promoters - Mayank Shah and Sweta Shah. Funds raised through fresh issuance will be used for setting up the company's proposed facility.

“The company's operational revenue is primarily derived from export sales, with approximately 98% of revenues from operations coming from exports during the period ended September 30, 2022. The company reported an EBITDA margin of 21.97% for FY2022, but its top and bottom-line growth has been lackluster. The asking P/E at the upper band of the issue price, based on FY22 metrics, is around 16x after accounting for the fresh issue. Small issue size, however, can generate a fancy for its subscription," said Abhay Doshi, Founder at UnlistedArena.

Global Surfaces Limited is engaged in the business of processing natural stones and manufacturing engineered quartz. The company has 2 manufacturing units in Rajasthan.

“In terms of financial performance, the company reported total revenue of ₹198 crore for the fiscal year ended March 31, 2022, reporting an after-tax net profit of ₹35 crore. For the six months period that ended September 30, 2022, the company has reported revenue of ₹99 crore and profit after tax of ₹13.6 crore. If we annualize FY23 earnings and consider post-IPO fully diluted paid-up equity capital, the asking price is at a P/E of around 21.84 considering the expected listing price of Rs.175 and EPS of Rs.8.01. If we consider FY22 earnings, the P/E stands at 16.64 considering the expected listing price of Rs. 175 and EPS of Rs.10.52," said Manish Khanna, Co-Founder at Unlisted Assets.

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