image showing natural stone quarry with large machines
The latest company to join the list of IPOs in 2023 is Global Surfaces Limited which is in the business of processing natural stones and manufacturing engineering quartz.
Global Surfaces Limited IPO was open for subscription on 13th March 2023 and closed on 15th March 2023.
Here are all the essential details of Global Surfaces Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of the Global Surfaces Limited IPO are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 13th March 2023 |
| IPO Closing Date | 15th March 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs. 10 per share |
| IPO Price Band | Rs. 133 – Rs. 140 per share |
| IPO Size | Rs. 155 crores (11,070,000 shares) |
| Offer For Sale | Rs. 119 crores (8,520,000 shares) |
| Fresh Issue | Rs. 36 crores (2,550,000 shares) |
The important dates for the Global Surfaces Limited IPO are highlighted below:
| Event | Date |
| Opening date | 13th March 2023 |
| Closing Date | 15th March 2023 |
| Allotment date | 20th March 2023 |
| Refund Date | 21st March 2023 |
| Share Credit Date | 22nd March 2023 |
| Listing Date | 23rd March 2023 |
Investors can subscribe to the shares of Global Surfaces Limited IPO in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots (for retail investors) | Minimum – 1 lotMaximum – 14 lots |
| Shares | Minimum – 100Maximum – 1400 |
| Investment amount | Minimum – Rs. 14,000Maximum – Rs. 1,96,000 |
The categories of eligible investors and their share in the IPO are tabled below:
| Category of Investor | Reservation Percentage |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
| RII (Retail Individual Investors) | 35% |
As per market observers, Global Surfaces IPO commanded a grey market premium (GMP) of Rs. 18 as of the last day of IPO subscription. This was Rs. 8 higher from the previous grey market price of Rs. 10. Market observers are of the belief that Global Surfaces IPO GMP has improved towards the end of the subscription period.
The key objectives of the IPO are stated below:
Global Surfaces Limited was incorporated in 1991 and is in the business of processing natural stones and manufacturing engineered quartz. These natural stones are produced after complex geological processes and include products like granite, limestones, slate, marble, onyx, sandstone, quartzite, and more. The company has two units RIICO Industrial Area and Mahindra World City SEZ located in Jaipur, Rajasthan. The company has a sound national as well as international presence and its products have applications in flooring, wall cladding, countertops, cut-to-size, and other items. The exports of the company are in prominent countries like the United States of America, Canada, Australia, and the Middle East.
Global Surfaces Limited financials are given in the table below:
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS(Rs.) | Diluted EPS(Rs.) | RONW |
| Mar-2022 | 236 | 190 | 35.63 | 10.52 | 10.52 | 32.51% |
| Mar-2021 | 159 | 175 | 33.93 | 10.02 | 10.02 | 34.47% |
| Mar-2020 | 129 | 163 | 20.96 | 6.19 | 6.19 | 26.59% |
(Source: RHP)
Some of the key strengths of Global Surfaces Limited that investors can take note of are:
| Category | Details |
| Business model | The company has a wide product portfolio and multiple designs.The focus of the company is to identify new market trends and introduce high-quality products that are in demand. The company is self-reliant in the development of high-quality products. The in-house R&D facility of the company focuses on the development of good quality cost-effective engineered quartz |
| Customer base | The company has an established presence in the domestic as well as global markets. |
Here are some of the risks that investors of Global Surfaces Limited IPO should know:
| Category | Details |
| Business viability and profitability | The company is dependent on a few customers to meet a major part of its revenues.The company may face an adverse impact on its business, its net profits, and cash flow on account of restrictions on the import of raw materials and delay or default in customer payments.The company is dependent on third-party transportation providers for the supply of raw materials and finished goods delivery system. |
| Competition | The company belongs to an industry that is quite fragmented and faces high competition from many large and small players. |
After the Global Surfaces Limited initial public offering (IPO) was subscribed 12.21 times, investors are now eagerly waiting for the Global Surfaces IPO allotment date.
The company has a sound national and international market for natural stones and manufacturing engineered quartz. These markets are expected to grow at an average of 6% CAGR and the company is also backed by strong fundamentals. Investors can therefore consider this IPO for a long-term investment portfolio.
Investors can invest in this IPO through the Fisdom app.
The two manufacturing and processing units of Global Surfaces Limited are located in Jaipur Rajasthan in RIICO Industrial Area, Bagru Extn, Bagru, and Mahindra World City SEZ, Jaipur.
The post-issue shareholding pattern of Global Surfaces Limited will be 73.36% approximately for the promoter group and a balance of 26.64% for the general public.
Pokharna Limited is the only listed peer for Global Surface Limited and its operating revenue is more than 3 times of the latter. Pokharna Limited has an operating revenue of Rs. 650 Crores whereas Global Surfaces Limited has an operating revenue of Rs. 190 crores.
The revenue contribution of the top three customers of Global Surfaces Limited for FY 22 was approximately 65.41%.
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