Durlax Top Surface planning to raise up to Rs 40.80 crore from public issue; IPO opens June 19
PNN
Ahmedabad (Gujarat) [India], June 18: Durlax Top Surface Ltd, leading company involved in the business of Solid Surface for over a decade is planning to raise up to Rs 40.80 crore from its SME public issue. The company has received approval to launch its public issue on NSE Emerge Platform of National Stock Exchange. The public issue open for subscription on June 19 and closes on June 21. The Proceeds of the public issue will be utilised to fund company's expansion plans including meeting working capital requirements and general corporate purposes. Expert Global Consultants Private Ltd is the book running lead manager of the issue.
* Company to issue 60 lakh Equity shares of Rs 10 face value in the price band of Rs 65-68 per share; To list NSE EMERGE Platform of NSE
* Grey Market premium on company's share is trading around Rs 23 per share indicating a listing gain of over 33% as per https://www.investorgain.com
Highlights:-
- Public issue opens for subscription from June 19 to June 21
- IPO of Rs 40.80 crore comprises of Fresh issue of Rs 28.56 crore and Offer for sale of Rs 12.24 crore
- Company operates through two brands LUXOR (Acrylic UV Solid Surface) & ASPIRON (Modified Solid Surface)
- Grey Market premium on company's share is trading around Rs 23 per share indicating a listing gain of over 33% as per https://www.investorgain.com
- Minimum lot size for application is 2000 shares; Minimum IPO application amount Rs 1.30 - 1.36 lakh
- Funds raised through the issue will be used to meet the working capital requirements and general corporate purposes
- For FY23-24 company reported revenues of Rs 90.84 crore and Net Profit of Rs 5.05 crore
- Expert Global Consultants Private Ltd is the book running lead manager of the issue.
The initial public offering of Rs 40.80 crore, comprises of a fresh issue of Rs 28.56 crore (42 lakh equity shares) and offer for sale of Rs 12.24 crore (18 lakh shares) of face value Rs 10 each. Company has finalized price band of Rs 65-68 per equity share for the public issue. Out of the fresh issue of Rs 28.56 crore, company plans to utilize Rs 17.50 crore towards part finance the working capital requirements and Rs 6 crore towards general corporate purpose. Minimum lot size for the application is 2000 shares which translates in to investment of Rs 1.30-1.36 lakh per application.
Grey Market premium on company's share is trading around Rs 23 per share indicating a listing gain of over 33% as per https://www.investorgain.com/.
Retail investor quota for the IPO is kept at not less than 35% of the offer while quote for QIB Investor is kept at maximum of 50% of the net offer and HNI quota at not less than 15% of the offer. Promoter holding pre issue stands at 95.44% which post issue will come to 60.35%.
Established in 2010, Durlax Top Surface Ltd manufactures solid surface materials. The company has two brands, namely LUXOR and ASPIRON. The LUXOR brand offers acrylic UV solid sheets while ASPIRON offers modified solid sheets. Both brands offer seamless designs, antibacterial and fire-retardant properties, ensuring a comprehensive range of high-quality solid sheets. The products are used in residential, commercial, hospitality, healthcare, outdoor and various other industries, providing stylish and durable solutions for countertops, vanities, offices, retail spaces, hotels, hospitals, outdoor projects and more. The company's manufacturing facility is located in Vapi, Gujarat. Company also exports to 19 countries. Company's manufacturing facility has been certified to conform to ISO 9001:2015 and ISO 14001:2015.
Company has reported excellent operational and financial performance over years. The Company has witnessed a multi-fold growth in revenue and profitability over the years. For FY23-24 ended March, company has reported net profit of Rs 5.05 crore (Y-o-Y growth of 141%) and revenue of Rs 90.84 crore (Y-o-Y growth of 141%) as compared to profitability and revenue of Rs 2.09 crore and Rs 66.84 crore in FY22-23.
As on March 2024, Net Worth of the company was reported at Rs 21.84 crore, Reserves & Surplus at Rs 9.42 crore and Asset base of Rs 105.53 crore. As on March 2024, ROE of the company was 26.20%, ROCE at 20.20% and RONW at 23.12%. Shares of the company will be listed on NSE's Emerge platform.
Corporate Video:- https://www.youtube.com/watch?v=p6Bgs1Oka8I&t=235s
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