Esprit Stones IPO to open tomorrow; price band set at ₹82–87 apiece

The Esprit Stones initial public offering (IPO) subscription period opened on Friday, July 26 and ends on Tuesday, July 30. Esprit Stones IPO is priced at ₹82–87 per share, with a ₹10 face value. At least 1600 shares are up for bid, and multiples of those are also available.

A total of 10,75,200 equity shares will be allocated to qualified institutional buyers (QIBs); 8,06,400 equity shares to non-institutional investors; 18,81,600 equity shares to retail investors; 1,28,000 equity shares to the employee reservation portion; and 2,91,200 equity shares to market makers.

Esprit Stones Limited was established in 2016 and produces engineered quartz and marble surfaces. The Manufacturing Facility I has two polishing lines and three pressing lines as of March 2024, and it can produce about 72 lakh square feet annually. Furthermore, we put our Manufacturing Facility II into operation to produce quartz grit and quartz powder, which are needed to make engineered quartz. At the third production site, the company produces unsaturated polyester resin.

As per red herring prospectus (RHP), the company's listed peers are Pokarna Ltd (with a P/E of 25.33), Pacific Industries Ltd (with a P/E of 16.43), Global Surfaces Ltd (with a P/E of 51.34), Elegant Marbles & Grani Industries Ltd (with a P/E of 23.69).

Between March 31, 2024, and March 31, 2023, Esprit Stones Limited's profit after tax (PAT) climbed by 190.04% while its sales increased by 56.07%.

Esprit Stones IPO details

The Esprit Stones IPO, valued ₹50.42 crore, includes a fresh issuance of 5,795,200 equity shares with a face value of ₹10. There is no "offer for sale" component.

The company's working capital requirements, investments in its subsidiary Haique Stones Private Limited (HSPL), repayment and/or prepayment of borrowings, and working capital requirements are the main uses of the net proceeds from the issue.

Choice Capital Advisors Private Ltd and Srujan Alpha Capital Advisors LLP are the issue's lead managers, while Link Intime India Private Ltd is the issue's registrar.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.