Esprit Stones IPO Subscribed More Than 180 Times On Final Day

The initial public offering (IPO) of Esprit Stones Ltd. opened for subscription on July 26 and closed on July 30. Esprit Stones IPO of Rs 50.42 crore was a book-built issue that involved a fresh issuance of 57.95 lakh shares. The SME IPO was subscribed 2.07 times on Day 1 and 17.49 times on Day 2. The bidding concluded on day 3 with an overall subscription of more than 180 times.

The IPO has been subscribed 185.82 times on Tuesday, July 30.

• Anchor investors: 1 time.

• Non-institutional buyers: 399.58 times.

• Retail investors: 145.75 times.

• Qualified Institutions: 117.63 times.

The price band for the IPO was set between Rs 82 and Rs 87 per share. The allotment process is expected to be finalised by July 31. The shares are scheduled to be listed on the NSE SME platform, with the tentative listing date set for August 2.

The IPO offered a minimum lot size of 1,600 shares, with the minimum investment amounting to Rs 1,39,200 for retail investors. High networth individuals (HNIs) must invest in at least two lots (3,200 shares), totalling Rs 2,78,400.

The SME IPO offered 5,795,200 shares, out of which 18.55% were reserved for qualified institutional buyers (QIBs), 13.91% for non-institutional buyers (NIIs), 32.47% for retail investors and 27.83% for Anchor investors.

The book-running lead managers for the IPO are Choice Capital Advisors Pvt Ltd and Srujan Alpha Capital Advisors LLP, with Link Intime India Private Ltd serving as the registrar and Choice Equity Broking as the market maker.

Founded in 2016, Esprit Stones Ltd. specialises in the manufacture of engineered quartz and marble surfaces. The company's manufacturing facilities include Facility I, which features three pressing lines and two polishing lines with an annual production capacity of approximately 72 lakhs sq. ft., and Facility II, which produces quartz grit and powder. Facility III focuses on unsaturated polyester resin production. Esprit Stones has achieved several key certifications, including ISO 14001:2015, ISO 45001:2018, ISO 9001:2015, NSF, and Green Guard. As of May 31, the company employed 295 people.

The IPO proceeds will be allocated to several key areas. Primarily, the funds will be used to meet the company's working capital needs. A portion will be invested in the subsidiary, Haique Stones Private Limited (HSPL), for the repayment or prepayment of its outstanding borrowings, as well as to support its working capital requirements. Additionally, funds will be used for general corporate purposes.

Financially, Esprit Stones has demonstrated growth. For the fiscal year ending March 31, the company's revenue increased by 56.07% compared to the previous year, while profit after tax (PAT) surged by 190.04%, highlighting robust operational performance and financial health.