Esprit Stones
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Jul 2024 – 30 Jul 2024
- Listing date
- 02 Aug 2024
- Face value
- ₹10 per share
- Issue price
- ₹87 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹50.35 Cr
- Market cap at offer price
- ₹191 Cr
- Promoter holding
- 100.00% → 73.59% pre-issue → post-issue
- ISIN
- INE0SBP01018
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Choice Capital Advisors Pvt.Ltd.
- Registered office
- SP1, Udyog Vihar, Sukher, Industrial Area, Rajasthan
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 16,12,800 | — | — |
| Market maker | 2,91,200 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹87
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,39,200 |
| S-HNI (min) | 2 | 3,200 | ₹2,78,400 |
| S-HNI (max) | 7 | 11,200 | ₹9,74,400 |
| B-HNI (min) | 8 | 12,800 | ₹11,13,600 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 6.39 | 4.70 |
| P/E (×) | 13.62 | 18.51 |
| Price to book (×) | 1.94 | — |
| Market cap | — | ₹191 Cr |
Key performance indicators
- Return on net worth
- 15.09%
- ROCE
- 12.39%
- Debt / equity
- 1.72
- PAT margin
- 3.78%
- NAV per share
- ₹44.82
- Price to book
- 1.94
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Esprit Stones
Esprit Stones Limited, incorporated in October 2016 and converted to a public limited company in February 2024, is primarily engaged in manufacturing engineered stones comprising engineered quartz surfaces and engineered marble surfaces. Engineered Stone is a composite material formed from crushed stone held together by an adhesive, offering superior scratch, stain and heat resistance compared to competing products like laminate and solid surfaces. The company manufactures through four facilities in Udaipur, Rajasthan, and generates revenue through sales of these products for applications including vanities, bathroom surfaces, kitchen countertops, floors, wall cladding, and furniture used in residential and non-residential applications. The company operates subsidiaries including Haique Stones Private Limited (HSPL) for engineered marble surfaces and Haique Stones Inc. in the USA for export operations.
Company Analysis
from RHPEsprit Stones Limited manufactures engineered stone surfaces including engineered quartz and marble surfaces for residential and commercial applications across interior design and construction industries.
Esprit Stones Limited, incorporated in October 2016 and converted to a public limited company in February 2024, is primarily engaged in manufacturing engineered stones comprising engineered quartz surfaces and engineered marble surfaces. Engineered Stone is a composite material formed from crushed stone held together by an adhesive, offering superior scratch, stain and heat resistance compared to competing products like laminate and solid surfaces. The company manufactures through four facilities in Udaipur, Rajasthan, and generates revenue through sales of these products for applications including vanities, bathroom surfaces, kitchen countertops, floors, wall cladding, and furniture used in residential and non-residential applications. The company operates subsidiaries including Haique Stones Private Limited (HSPL) for engineered marble surfaces and Haique Stones Inc. in the USA for export operations.
Objects of the Issue
- Funding working capital requirements of our Company ₹1,400.00 lakhs p.27
- Investment in our Subsidiary, Haique Stones Private Limited (HSPL), for repayment and/or prepayment in part or full of its outstanding borrowings ₹1,950.00 lakhs p.27
- Investment in our Subsidiary, HSPL for funding its Working Capital Requirement ₹650.00 lakhs p.27
- General corporate purposes p.27
- Funding Working Capital requirement of our Company ₹1,400.00 lakhs p.111
- Investment in our Subsidiary, Haique Stones Private Limited (HSPL), for repayment and / or prepayment in part or full of its outstanding borrowings ₹1,950.00 lakhs p.116
- Investment in our Subsidiary, Haique Stones Private Limited (HSPL) for funding its Working Capital Requirement ₹650.00 lakhs p.118
- General Corporate Purpose p.121
- Repayment or prepayment of borrowings availed by subsidiary HSPL p.157
- Not specified in this document section
Issue Structure
- Total Issue
- Up to ₹[●] lakhs
- Fresh Issue
- Up to 57,95,200 Equity Shares aggregating up to ₹[●] lakhs
- Offer for Sale
- Nil
- Price Band
- ₹82 per Equity Share (Floor Price) to ₹87 per Equity Share (Cap Price)
- Lot Size
- 1,600 Equity Shares and in multiples of 1,600 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through manufacturing and selling engineered stone products including engineered quartz surfaces and engineered marble surfaces. Revenue from operations for FY 2024, 2023, and 2022 were ₹27,289.02 lakhs, ₹17,441.09 lakhs, and ₹18,645.65 lakhs respectively. The company sources raw materials including quartz grit and powder, marble grit, calcite powder, resin, chemicals and pigments from third-party suppliers, with raw material costs representing 58.51%, 60.98%, and 58.66% of revenue from operations in FY 2022, 2023, and 2024 respectively. The company generates 59.87%, 72.75%, and 92.44% of sales from exports in FY 2024, 2023, and 2022 respectively, with 94.43%, 97.51%, and 96.47% of exports going to USA in those years respectively.
Business Segments
SWOT Analysis
- • Leading position in engineered stones manufacturing(p.27)
- • Vertical integration reducing raw material dependence(p.44)
- • Diversified product portfolio(p.27)
- • Strong export presence and revenue growth(p.28)
- • Superior product durability and properties(p.27)
- • Established market position in engineered stone industry with export presence(p.60)
- • Manufacturing capacity with installed equipment including solar power generation(p.66)
- • Revenue growth trajectory from operations(p.80)
- • Experienced management team with industry expertise(p.67)
- • Key player in high-growth engineered stones market(p.154)
- • Quality control and innovation focus with R&D capability(p.155)
- • Backward integration reducing raw material dependency(p.155)
- • Strategic location with abundant mineral deposits(p.156)
- • Experienced promoters with strong management team(p.156)
- • Established market position as key engineered stone player(p.254)
- • Diversified product portfolio with engineered quartz and marble surfaces(p.254)
- • Superior product characteristics offering durability and low maintenance(p.254)
- • Revenue growth from FY2022 to FY2024(p.254)
- • Strong EBITDA margin improvement to 12.17% in FY2024(p.255)
- • Strong growth in engineered quartz sales post US anti-dumping duty recovery(p.264)
- • Successful expansion into new product lines (engineered marble and polyester resins)(p.264)
- • Significant operating profit growth and improved profitability(p.266)
- • Revenue recovery with 56.46% year-over-year growth(p.264)
- • Geographic concentration of manufacturing facilities(p.43)
- • Heavy dependence on few major customers(p.44)
- • High leverage and debt burden(p.48)
- • Negative operating cash flow in prior year(p.58)
- • Under-utilisation of manufacturing capacity(p.53)
- • High dependence on third-party suppliers for raw materials(p.52)
- • High employee attrition rate(p.59)
- • Leased business premises create operational risk(p.43)
- • High financial leverage and debt burden(p.63)
- • Increasing trade receivables and working capital pressure(p.61)
- • Restrictive covenants and compliance issues with regulatory filings(p.64)
- • Dependence on Promoters for business operations(p.67)
- • Conflict of interest with Group Companies engaged in similar business(p.60)
- • Safety incidents at manufacturing facilities(p.66)
- • High debt-equity ratio indicating significant leverage(p.154)
- • Declining EBITDA margin year-over-year(p.154)
- • Low net profit margin despite revenue growth(p.154)
- • Underutilized manufacturing capacity(p.163)
- • Manufacturing facilities concentrated in Udaipur periphery(p.255)
- • Significant revenue concentration among limited customer base(p.255)
- • High debt-to-equity ratio of 1.72(p.255)
- • Elevated days working capital requirement of 97 days(p.255)
- • GST demand and litigation risks(p.232)
- • High dependence on top customers for revenue(p.274)
- • Significant increase in finance costs due to higher borrowing(p.266)
- • Outstanding GST-related disputes and contingent liabilities(p.272)
- • Material margin compression on new product lines(p.265)
- • Expanding engineered stones market in India(p.27)
- • Growth in hospitality and commercial real estate post-pandemic(p.27)
- • Increased residential real estate demand with hybrid working(p.27)
- • Expansion into new geographic markets(p.51)
- • Product range expansion in engineered marble surfaces(p.27)
- • Expansion of domestic market through dealer distribution network(p.112)
- • Growth in export markets post resolution of anti-dumping duties(p.112)
- • Expansion of subsidiary Haique Stones Private Limited operations(p.118)
- • New product development and niche market targeting(p.117)
- • Expanding engineered stones market with strong CAGR(p.154)
- • Growing USA market with penetration opportunity(p.153)
- • Domestic market expansion through distributor network(p.157)
- • Unsaturated polyester resin market growth(p.154)
- • Product portfolio expansion with new designs(p.157)
- • Expansion into engineered marble surfaces through subsidiary HSPL(p.254)
- • Wide variety of color and design offerings for diverse applications(p.254)
- • Export market growth, particularly in USA and Canada(p.216)
- • Manufacturing of raw materials for engineered stones(p.216)
- • Capacity utilization expansion in polyester resin production(p.264)
- • Multiple manufacturing facilities enhancing production capacity(p.257)
- • Export concentration and USA market dependency(p.45)
- • Antidumping duties on engineered stones exports(p.45)
- • Foreign exchange rate volatility(p.51)
- • Volatile raw material prices, especially crude oil derivatives(p.44)
- • Cyclicality of real estate and construction industry(p.56)
- • Regulatory and environmental compliance risks(p.46)
- • Competitive pressures and customer loss risk(p.45)
- • Transportation and logistics disruption(p.58)
- • Pandemic and infectious disease risks(p.43)
- • Intense competition in engineered stone industry with low entry barriers(p.60)
- • Dependence on adequate power and water supply(p.66)
- • Anti-dumping duties and trade regulations affecting exports(p.112)
- • Technology obsolescence and costly upgradation requirements(p.67)
- • Inflation in India affecting raw material costs and profitability(p.73)
- • Natural calamities and pandemic-related disruptions(p.74)
- • Foreign exchange fluctuations impacting export revenues(p.70)
- • Regulatory uncertainties and changing environmental laws(p.62)
- • High competitive pressure from organized and unorganized players(p.166)
- • Heavy reliance on export sales particularly to USA(p.151)
- • Exposure to raw material price fluctuations(p.141)
- • Global economic slowdown affecting demand(p.141)
- • Heavy dependence on US market for export revenues(p.255)
- • Raw material availability and price volatility risks(p.255)
- • Anti-dumping and countervailing duty exposure in USA(p.232)
- • Manufacturing capacity underutilization risk(p.255)
- • Competitive intensity from group company Rose Marbles Private Limited(p.205)
- • US anti-dumping duty regulatory risk on quartz surface exports(p.273)
- • Increased competition impacting selling prices(p.267)
- • Inflation impact on material costs and wages(p.272)
- • Foreign exchange volatility affecting export competitiveness(p.268)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sunilkumar Lunawath | Promoter | 13.68% | — |
| Nitin Gattani | Promoter | 28.11% | — |
| Pradeepkumar Lunawath | Promoter | 8.67% | — |
| Sangeeta Gattani | Promoter | 17.39% | — |
| Anushree Lunawath | Promoter | 2.99% | — |
| Siddhanth Lunawath | Promoter | — | — |
| Sunilkumar Lunawath | Promoter | 13.68% | — |
| Nitin Gattani | Promoter | 28.11% | — |
| Pradeepkumar Lunawath | Promoter | 8.67% | — |
| Sangeeta Gattani | Promoter | 17.39% | — |
| Anushree Lunawath | Promoter | 2.99% | — |
| Siddhanth Lunawath | Promoter | 0% | — |
| Mangi Lal Lunawath | Promoter Group | 8.66% | — |
| Sayar Kumari Mangilal | Promoter Group | 8.00% | — |
| Vijayshree Lunawath | Promoter Group | 8.00% | — |
| Shubh Gattani | Promoter Group | 4.50% | — |
| Sunilkumar Lunawath | Promoter/Managing Director | 13.68% | — |
| Nitin Gattani | Promoter/Joint-Managing Director | 28.11% | — |
| Pradeepkumar Lunawath | Promoter/Executive Director | 8.67% | — |
| Sunilkumar Lunawath | Promoter | 13.68% | — |
| Nitin Gattani | Promoter | 28.11% | — |
| Pradeepkumar Lunawath | Promoter | 8.67% | — |
| Sangeeta Gattani | Promoter | 17.39% | — |
| Anushree Lunawath | Promoter | 2.99% | — |
| Siddhanth Lunawath | Promoter | — | — |
| Sunilkumar Lunawath | Promoter | — | — |
| Anushree Lunawath | Promoter | — | — |
| Pradeepkumar Lunawath | Promoter | — | — |
| Mangi Lal Lunawath | First Director (per Article 136) | — | — |
| Pradeep Kumar Lunawath | First Director (per Article 136) | — | — |
| Sunil Kumar Lunawath | First Director (per Article 136) | — | — |
| Nitin Gattani | First Director (per Article 136) | — | — |
| Sunil Gattani | First Director (per Article 136) | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.