Global Surfaces Limited IPO looks to raise ~ ₹ 154.98 crore through this public offering, consisting of 11,070,000 shares of face value of ₹ 10 each. The issue is in price band of ₹ 133 to ₹ 140 per share. The Offer includes an offer for sale of such number of Equity Shares aggregating up to 2,550,000 by the Selling Shareholders, which includes the Promoter and member of the Promoter Group of the Company. Global Surfaces manufactures engineering quartz and natural stone.

Issue Opens             13th Mar’2023 
Issue Closes          Mar 15, 2023
Issue  Size           Fresh Issue of 8,520,000 Equity shares 
 and Offer for sale of 2,550,000 Equity shares
 11,070,000 Equity Shares
Issue Size               ₹ 147 – 155 Cr
Face Value              ₹ 10  
Price Band              ₹ 133 – 140
Bid Lot              100 shares 
QIB              50% of the offer 
NIB              15% of the offer 
Retail              35% of the offer 
BRLMs              Unistone Capital
Registrar              Bigshare Services Pvt. Ltd.        

Anchor Investors:

Global Surfaces has raised Rs 46.49 crore from anchor investors ahead of the opening of the IPO. The anchor investors are Leading Light Fund VCC – The Triumph Fund, Saint Capital Fund, and VPK Global Ventures Fund – Scheme 1.

About Global Surfaces Limited

  • Company was incorporated with the name ‘Swastic Niwas Private Limited’ which was changed in 2004 to ‘Global Stones Private Limited’ in light of the change in the business of the Company
  • Global Surfaces Limited has been engaged in processing natural stones and manufacturing engineered quartz for over three decades now.
  • Global Surfaces Limited has been in the business of processing natural stones since 2004 and entered the manufacturing of engineered quartz in 2018.
  • Our Company is engaged in the business of processing natural stones and manufacturing engineered quartz. Natural stones are produced by complex geological processes and include a number of products such as granite, limestone, marble, slate, quartzite, onyx, sandstone, travertine, and others that are quarried from the earth. Natural stones are widely known for their uniqueness, aesthetic appeal, texture, color, and composition as no two natural stones are the same. Engineered quartz on the other hand, is an example of engineered stone used in the countertop industry, which is a composite material made up of crushed stone bonded by an adhesive. For instance, for countertops, the slabs are made from quartz crystals bonded with a resin binder
  • The company has two units, one located at RIICO Industrial Area, Bagru Extn, Bagru, Jaipur, Rajasthan, and the other at Mahindra World City SEZ, Jaipur, Rajasthan. Both units engage in the processing and manufacturing of the products.
  • The products of Global Surfaces Limited have applications in flooring, wall cladding, countertops, cut-to-size, and other items. 
  • The products are widely used for commercial and residential industries and are sold within and outside India.

Global Surfaces Limited IPO: Financials

Particulars / Rs. crH1FY23202220212020
Revenue from Operations97.98190.31175.37163.29
Revenue Growth (%)8.52%7.40%
EBITDA as stated19.2341.847.4340.32
EBITDA Margin (%)19.63%21.97%27.05%24.69%
Profit Before Tax14.2236.1134.5320.72
Net Profit After Tax13.5935.6333.9320.96
Net Profit Margin (%)13.87%18.72%19.35%12.84%
Equity Share Capital33.8633.866.456.45
Net worth as stated148.93134.0498.4364.48
EPS – Basic & Diluted4.0110.5210.026.19
RONW (%)9.12%26.59%34.47%32.51%
NAV (₹)43.9839.58152.6199.98
ROE (%)9.12%26.59%34.47%32.51%
ROCE (%)7.89%20.85%35.75%32.95%
Debt Equity Ratio0.340.280.380.83
Post Issue share Cap42.38
FV in Rs. 10
IPO price140
EPS FY228.41
PE Fy2216.65
EPS Fy233 (ann)6.41
PE Fy23 (ann)21.83
Market cap in Lacs593
Market Cap/sales3.03

Global Surfaces Limited IPO: Salient Points

  • Post IPO promoters holding shall stand at 73.4%.
  • The company was acquired as a sick unit and turned around by promoters. Subsequently in 2018 the company has ventured into engineering quartz as well.
  • As of September 30, 2022, it is operating out of two Units in Jaipur, Rajasthan with an aggregate estimated installed production capacity of 4,71,164 sq. mtr. per annum for natural stones and 5,21,643 sq. mtr. per annum for engineered quartz.
  • In Fiscals 2020, 2021 and 2022, its overall capacity utilization for natural stones was 63%, 57.20% and 28.74%, respectively and for engineered quartz was 70.38%, 64.01% and 68.96%, respectively
  • It is investing Rs. 150 cr for greenfield expansion in Dubai, UAE, which is likely to commence production by Sep 2023.
  • The company has historically derived a significant portion of revenues from exports to the United States of America. In Fiscal 2022 and period ended September 30, 2022, the revenue generated from exports to the USA represented 99.13% and 94.85% respectively of the operating revenue.


  • company’s financial performance depends significantly on the stability of the real estate, infrastructure and other related industries, as well as general economic conditions.
  • Business requires significant amount of working capital primarily as a considerable amount of time passes between purchase of raw materials and collection of receivables post sales to customers.
  • Its main export market USA, has been witnessing a slowdown in demand.


CompanyFace Value CMP (in ₹)Revenues in Cr.Net Proft in Cr. NPMPEROE (%)D/E
Global Surfaces Limited10140190.3135.6318.7%16.626.59%0.28
Pokarna Limited2282650.1978.312.0%11.217.68%1.15

Global Surfaces Limited IPO: Assessment

  • The global natural stone industry has showed signs of recovery after in decline in 2020 and is expected to grow at a CAGR of 6-7% between 2022 and 2027.
  • To cater to growing market demand for its products, specifically for engineered quartz, and expand its presence in new regions, it is in the process of deepening its presence by setting up a facility in the Middle East through a wholly owned subsidiary Global Surfaces FZE. Proposed Facility is expected to commence commercial operations by FY 2023-24.
  • Secured loans for setting this new unit have been obtained from HDFC Bank and Kotak Mahindra Bank and rest will be funded through IPO proceeds.
  • Pokarna, India’s relatively larger manufacturer and exporter of quartz surfaces, reported significant drop in margins in Q3FY23 and reported lower demand due to slowdown in US housing market.
  • In past marble/stone companies have given poor returns to investors.
  • In case of Global Surfaces also, there is some decline in margins and further the reported financials are till H1FY23 and in this quarter one cannot rule out further decline in margins if one keeps Pokarna as a reference.
  • The company has established track record of growth and financial performance and it is to credit of [romoters that they turned around a sick unit and extended oits product range.
  • Global Surfaces witnessed ROE and ROCE of 26.59% and 20.85% in FY2022, respectively. The company’s Debt to equity is comfortable at 0.3x.
  • Global Surfaces Limited has won several awards which include CAPEXIL Special Export Award, Fastest Growing Industrial & Business Development Award by Indian Organization for Commerce and Industry, Business Enterprises of Tomorrow 2022 – Best Global Business of the Year by Dun & Bradstreet India etc.
  • Management has proven its ability by revival of a sick industrial unit and was able to tap international markets and diversify its business into manufacturing of engineered quartz. The company today has a wide product portfolio and designs and has a good markets like the USA, Canada, Australia and the Middle East.
  • Global Surfaces’ ROE and ROCE for FY22 are 26.6 and 20.9 per cent, respectively. It also has a higher net profit margin compared to its peer, Pokarna.
  • The company will list in ‘T’ segment, which in many cases these days attract speculative interest.
  • Unistone Capital has in the past managed SME IPOs like and T group mainline IPOs Like Likhita Infra, HP Adhesives Limited, Sigachi Industries Limited and SME IPOs like Integrated Personnel Services Limited, All E Technologies Limited.
  • Acuite Ratings & Research Limited has on March 31, 2022 assigned ACUITE A-; Outlook: Stable rating for the long-term bank facilities and ACUITE A2+ rating for the short-term bank facilities of the Company.
  • Social media reports indicate a decline in GMP from Rs. 30 to very low numbers due to market crash.
  • PE ratio is 16.6x (FY22) and 21.8 x (fy23 annualized) as margins have come down in last 6 months.
  • I may skip Global Surfaces Limited IPO maily to due to current market conditions though it is an average issue and some speculation due to iots being in T group is possible.
  • May put in a very small application on Day 3 if markets recover and response is good to the IPO.
  • Please do your own diligence as IPOs in past have not given much listing gains to investors and have many times ended in losses.

  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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