Esprit Stones IPO is a book-built issue of Rs 50.42 crore. The matter is quite fresh and is only a new issue of 57.95 lakh shares.
Esprit Stones got listed on the IPO on July 26, 2024 and the IPO subscription ends on July 30, 2024. The total amount of share to be offered for the Esprit Stones IPO is meant to be concluded on Wednesday, 31st of July 2024. The Esprit Stones Limited IPO is getting open on NSE SME and the proposed tentative listing date has been set for Friday August 2, 2024.
The pricing for Esprit Stones IPO is at ₹ 82 to ₹ 87 per share. The minimum is lot size in an application is 1600 Shares. The minimum investment that a retail investor can make is ₹139, 200. The minimum lot size investment for HNI is 2 lots (3,200 shares) and cost of this investment is ₹278,400.
Table of Contents
Overview of Esprit Stones IPO
Esprit Stones Limited was established in 2016 and specializes in the production of engineered quartz and marble surfaces.
Manufacturing Facility I as of March 2024 has integrated three (3) pressing lines and two (2) polishing lines that can produce roughly 72 lakhs sq. ft. per annum. Further, they are engaged in Manufacturing Facility II to produce the quartz grit and quartz powder which is the leading material to the production of engineered quartz.
The company manufactures unsaturated polyester resin, at the manufacturing facility three.
The company holds the accreditation of certifications such as ISO 14001:2015, ISO 45001:2018, ISO 9001:2015, NSF, Green Guard.
The firm has 295 employees working in different operational units as of May 31, 2024.
Esprit Stones IPO Details
| IPO Date | July 26, 2024, to July 30, 2024 |
| Listing Date | Friday, August 2, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹82 to ₹87 per share |
| Overall Subscription | 2.01x |
| Lot Size | 1600 Shares |
| Total Issue Size | 5,795,200 shares (aggregating up to ₹50.42 Cr) |
| Fresh Issue | 5,795,200 shares (aggregating up to ₹50.42 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 16,150,000 |
| Share holding post issue | 21,945,200 |
| Market Maker portion | 291,200 shares |
Esprit Stones IPO GMP Today
Esprit Stones IPO surge 2.01 times overall subscription. That show a low interest of investors for the IPO.
The last updated Grey Market Premium of the Esprit Stones Ltd. IPO is ₹17. The estimated listing price of the Esprit Stones IPO is ₹82-₹87 per share. This price combines the cap price and today’s GMP. This table shows the Esprit Stones IPO’s GMP trend from the previous days.
The expected listing share price range of Esprit Stones Limited’s IPO is ₹82-₹106.
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| GMP Date | IPO Price | GMP Price |
| July 29, 2024 | ₹82-₹87 | ₹16 |
| July 28, 2024 | ₹82-₹87 | ₹17 |
| July 27, 2024 | ₹82-₹87 | ₹12 |
| July 26, 2024 | ₹82-₹87 | ₹35 |
| July 25, 2024 | ₹82-₹87 | ₹32 |
| July 24, 2024 | ₹82 to ₹87 | ₹27-₹30 |
| July 23, 2024 | ₹82 to ₹87 | n/a |
Esprit Stones IPO Reservation Quota
Esprit Stones IPO quota distribution with QIBs can get 50% of the net issue, retail investors are guaranteed at least 35%, and NIIs/HNIs can get at least 15%.
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Esprit Stones IPO Timeline (Tentative Schedule)
Important dates for the Esprit Stones Initial Public Offering (IPO) include the pre-offering, which begins on July 26, 2024, and ends on July 30, 2024.
| IPO Open Date | Friday, July 26, 2024 |
| IPO Close Date | Tuesday, July 30, 2024 |
| Basis of Allotment | Wednesday, July 31, 2024 |
| Initiation of Refunds | Thursday, August 1, 2024 |
| Credit of Shares to Demat | Thursday, August 1, 2024 |
| Listing Date | Friday, August 2, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on July 30, 2024 |
Esprit Stones IPO Lot Size
The minimum bid size for the stock which can be implemented by the investors is 1600 shares but in multiples of that. The following table shows the minimum & maximum investment by retail investors & HNI in terms of shares & amount.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 1600 | ₹139,200 |
| Retail (Max) | 1 | 1600 | ₹139,200 |
| HNI (Min) | 2 | 3,200 | ₹278,400 |
Esprit Stones IPO Promoter Holding
The promoters of the Company are Sunilkumar Lunawath, Nitin Gattani, Pradeepkumar Lunawath, Sangeeta Gattani, Anushree Lunawath and Siddhanth Lunawath
| Share Holding Pre Issue | 100.00% |
| Share Holding Post Issue |
Esprit Stones Limited Financial Information (Restated)
The Revenues of Esprit Stones Limited grew by 56.07% and profit after tax (PAT) increased by 190.04% within the financial year ending March 31, 2024 and ending March 31, 2023.
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 27,459.35 | 23,802.24 | 18,069.74 |
| Revenue | 27,477.82 | 17,606.52 | 19,002.60 |
| Profit After Tax | 1,031.73 | 355.72 | 1,850.53 |
| Net Worth | 7,238.80 | 6,227.81 | 5,893.32 |
| Reserves and Surplus | 5,623.80 | 5,277.81 | 4,943.32 |
| Total Borrowing | 12,541.91 | 11,879.55 | 5,799.76 |
| Amount in ₹ Lakhs | |||
Key Performance Indicator
The market capitalization of the Esprit Stones IPO is Rs 190. 92 Cr.
KPI as at 31st march 2024.
| KPI | Values |
| ROCE | 12.39% |
| Debt/Equity | 1.72 |
| RoNW | 15.09% |
| P/BV | 1.94 |
| PAT Margin (%) | 3.78 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 6.39 | 4.7 |
| P/E (x) | 13.62 | 18.51 |
Note:
- The Pre IPO EPS is computed with the value of Pre issue shareholding as on date of RHP and the latest FY earning that is March, 2024 and is available in RHP.
- The Post Issue EPS is calculated with the help of Post issue shareholding and adjusted FY earning of March 31, 2024 as mentioned in RHP.
Objects of the Issue (Esprit Stones IPO Objectives)
The net proceeds of the Issue, i. e. gross proceeds of the Issue less the issue expenses to the extent applicable to the Issue (“Net Proceeds”) are proposed to be utilised for the following objects:
- Fund Working Capital requirement of the Company
- An investment in the Subsidiary, Haique Stones Private Limited (HSPL), for repayment and / or prepayment for the same either wholly or partly of its outstanding borrowings
- Funding of Working Capital Requirement for the Subsidiary, Haique Stones Private Limited (HSPL)
- General Corporate Purpose
Investment Analysis
Growth Potential
Given the increasing demand for construction and decorative stones, Esprit Stones has the ability to effectively capitalize on the opportunity. The company has the benefit of significant growth points, especially in the real estate and construction industry. Because of the diversification of its products and partnerships, Esprit Stones is ready for growth.
Valuation and Pricing
An evaluation of Esprit Stones is important to any interested investor. In terms of the issue price and the financials of the company, it can be seen that the valuation of the stock is reasonable. The P/E ratio and per share book value should be compared to industry average to establish an attractive IPO.
Market Conditions
Market conditions become a factor when it comes to the outcome of an IPO. Market sentiment, industry performance and the general economic environment may affect the performance of the IPO. As for today, the market situation is inclined to the side of IPOs which can be beneficial for Esprit Stones.
Expert Opinions
Experts have expressed varied opinions regarding the Esprit Stones IPO. While some may see it as good investment opportunity given the company’s strong and growing financial position, others would argue that it is a very risky business given the nature of the stone business.
Risks and Opportunities
The following are yet more pros and cons that people face when investing in IPOs. Here are some considerations:
• Opportunities: The stone industry is evolving and Esprit Stones has the opportunity to expand its business as the market for natural stones rises.
• Risks: Like any investment, there are inherent risks arising from market fluctuations, competition, and potential operational risks.
Esprit Stones Limited Contact Details
Esprit Stones Limited
SP1, Udyog Vihar, Sukher
Industrial Area,
Udaipur: 313 004,
Phone: +91 91166 52582
Email: [email protected]
Website: https://espritstones.com/
Conclusion
The prospect of investing in Esprit Stones IPO offers an investment opportunity for those intending to venture in the stone industry. Given the sound financial status, promising development trends, and investors’ optimism, the IPO will certainly draw a lot of attention. Nonetheless, investors should indeed ensure they accept those risks also while seeking financial advice before investing in the relevant securities.
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