Global Surfaces shares listed at 17% premium over IPO price on NSE and BSE amid a negative domestic market. The share debuted at Rs 164 on the NSE, as compared to the issue price of Rs 140. The scrip touched a high of 23% at Rs 172.2. A positive listing was expected as ahead of the market debut, Global Surfaces shares were trading at a premium of Rs 18 in the grey market.
Global Surfaces IPO opened for subscription on 13 March and the issue was booked 1221% on day 3, with total bids of 9,46,14,400 lakh shares. Qualified institutional buyers (QIBs) subscribed for 8.95 times of their reserved portion. Retail investors bid for 5.12 times of the shares reserved for RIIs. The NII portion garnered 3310% bids and was oversubscribed. The IPO closed for subscription on Wednesday, 15 March.
Global Surfaces is engaged in processing natural stones and manufacturing engineered quartz. Natural stones form various products like granite, limestone, marble, and others. The products of Global Surfaces have applications in flooring, wall cladding, countertops and other items; the products are widely used for commercial and residential industries.
“The company started their business activities with processing of natural stones and post that they branched out to manufacturing engineered quartz, this led to add a wide range of products in its portfolio. Going ahead, their plan is to keep a constant focus on adding new products, identifying new markets and introducing high quality products which are in demand,” said Religare Broking. The brokerage firm added, “The company’s Revenue and PAT grew by 9.4% and 30.4% CAGR over FY20-22. On the valuation front, at an EPS of 10.5 in FY22, the company trades at P/E of 13.3x. Key Risk: 1) Highly dependent on few customers and geography (USA) for revenue. 2) The company does not have any long term arrangements/ agreements with customers or suppliers and this can impact business operations.”