What You Must Know About Esprit Stones IPO: Price Band ₹82 to ₹87 per share

About Esprit Stones Limited

Esprit Stones Limited, founded in October 2016, focuses on producing premium engineered stones such as quartz and marble surfaces. It's one of the largest suppliers of these stones in India. The company focuses on manufacturing quartz surfaces and produces marble surfaces through its subsidiary, HSPL. Their advanced manufacturing processes ensure the stones are consistent, durable, crack resistant and visually appealing.

The company prioritizes product innovation and invests in research and development, marketing and customer relationships to enhance its product range. As of March 2024, their first manufacturing facility has three pressing lines and two polishing lines, capable of producing about 72 lakh square feet annually. They also have a second facility dedicated to producing quartz grit and powder, essential for making engineered quartz. By the end of May 2024, Esprit Stones Limited employed 295 people across various departments.
 

Highlights of the Esprit Stones IPO

Here are some of the highlights of the Esprit Stones IPO on the SME segment of the National Stock Exchange (NSE).

• The issue opens for subscription on 26th July 2024 and closes for subscription on 30 July 2024; both days inclusive.
• Esprit Stones Ltd is offering shares with a face value of ₹10 each. Price range for the shares is set between ₹82 and ₹87.
• Esprit Stones IPO has only a fresh issue component and no OFS portion.
• As part of the fresh issue portion, the company will issue a total of 57.95 lakh at the upper band IPO price of ₹87 per share aggregates to fresh fund raising of ₹50.42 crores.
• Since there is no offer for sale, the overall IPO size will also comprise of the issue of 57.95 lakh at the upper band IPO price of ₹87 per share aggregates to overall IPO size of ₹50.42 crores.
• As with all SME IPOs, this issue includes a market-making component. Choice Equity Broking has been designated as the market maker for this IPO.
• The company has been promoted unilkumar Lunawath, Pradeepkumar Lunawath, Nitin Gattani, Anushree Lunawath, Sangeeta Gattani and Siddhanth Lunawath.Currently, the promoters hold 100% of the company's shares. After the new shares are issued, their ownership percentage will be reduced.
• Fresh issue funds will be used by the company for funding the working capital needs of the business, Investment in the Subsidiary, a portion of the IPO funds will also be allocated for general corporate needs.
•  Choice Capital Advisors Pvt Ltd and Srujan Alpha Capital Advisors Llp are managing the IPO. Link Intime India Private Ltd is handling the share registration.

Esprit Stones IPO: Key Dates

The Esprit Stones IPO will open for subscription on July 26, 2024, and close on July 30, 2024. After the subscription period ends, the basis of allotment will be finalized on July 31, 2024. Refunds will be processed for those who do not receive shares on August 1, 2024, and the shares will be credited to successful applicant’s demat accounts on the same day. The shares will be listed on the stock exchange and open for trading beginning August 2, 2024.

Esprit Stones IPO: Lot Sizes for Investment

Choice Equity Broking will act as the market maker for the IPO. The net offer will be allocated among Qualified Institutional Buyers (QIBs), retail investors and High Net Worth Individuals (HNIs) / Non-Institutional Investors (NIIs). The breakdown of the overall IPO of Esprit Stones in terms of allocation to various categories are captured below.

Retail investors can invest in the IPO by purchasing a minimum of 1,600 shares, which requires an investment of ₹1,39,200. This amount also represents the maximum investment allowed for retail investors. High Net Worth Individuals (HNIs) and Non Institutional Investors (NIIs) must invest in at least 2 lots, totaling 3,200 shares, with a minimum investment of ₹2,78,400. There is no upper limit on the investment amounts for Qualified Institutional Buyers (QIBs) and HNIs/NIIs. The table below provides a breakdown of lot sizes for different investor categories.

Financial Highlights of Esprit Stones Limited

The table below captures the key financials of Esprit Stones Limited for the last 3 completed financial years.

Over the past three fiscal years, the company has seen growth in its assets, which increased from ₹18,069.74 lakh in FY22 to ₹27,459.35 lakh in FY24. Revenue also grew substantially, rising from ₹19,002.60 lakh in FY22 to ₹27,477.82 lakh in FY24. However, profit after tax reached its peak in FY22 at ₹1,850.53 lakh and decreased to ₹1,031.73 lakh by FY24.

The company’s net worth, reflecting its overall value, improved from ₹5,893.32 lakh in FY22 to ₹7,238.80 lakh in FY24. Reserves and surplus, representing retained earnings, also increased from ₹4,943.32 lakh in FY22 to ₹5,623.80 lakh in FY24. Meanwhile, the company's total borrowings have grown from ₹5,799.76 lakh in FY22 to ₹12,541.91 lakh in FY24.