The initial public offering (IPO) of Global Surfaces Ltd was subscribed 42% on Day 1, and 1.09 times on Day 2. The public issue received positive response from retail investors and non-institutional investors. However, qualified institutional investors did not participate enthusiastically.
The public issue that opened for subscription on Monday, March 13, will close on Wednesday, March 15.
The company has fixed the price band at ₹133 to 140 per equity share for the proposed initial public offer. Investors can bid for a minimum of 100 equity shares and in multiples thereafter.
The public offering, which has a face value of ₹10 per equity share, consists of a fresh issue of 85.20 lakh equity shares and offer for sale (OFS) of up to 25.5 lakh equity shares by selling shareholders.
Promoter Mayank Shah will sell 14 lakh shares through the OFS process, and Sweta Shah will sell 11.5 lakh shares.
According to the Red Herring Prospectus (RHP), the net proceeds from the issue will be utilised for investment in wholly owned subsidiary Global Surfaces FZE for part-financing its capital expenditure requirements of setting up the manufacturing facility in Dubai and general corporate purposes.
Unistone Capital Private Ltd is the sole lead manager of the issue, and Bigshare Services Private Ltd is the registrar.
The equity shares are proposed to be listed on BSE and NSE.
What do brokerages say?
Hem Securities Ltd
Positive signs include the company's extensive product line, numerous designs, and established foothold in foreign markets. Additionally, the company is skilled and results-driven.
"Promoter with a committed employee base . Company’s effective quality checks thereby reducing loss and research & development set up for new product development is also signalling towards strong base of company. However, valuation at current levels looks little stretched. Hence, we recommend 'Long Term Subscribe' on issue," said the brokerage.
Jainam Broking Ltd
The brokerage recommends investors to subscribe to the issue for 'Short Term'.
It said that the company is depended on few customers for major part of the revenue. “Major portion of revenue is deriving from USA, approximately 99% of revenues from operations have been derived from exports…” it said.
"The company is in the business of processing natural stones and manufacturing engineered quartz. It has shown declining trends in its return on equity (RoE) and return on capital employed (RoCE). Based on FY23 annualised earnings, the issue is aggressively priced. It is also in the highly competitive segment. The initial listing will be in the 'T' group ( category of stocks defined by bourses to identify higher-risk ) and there may not be any speculative move on debut. Hence, well-informed/cash-surplus investors may consider an investment with a long-term perspective," said the contributing editor at Chittorgarh.com.