Global Surfaces Ltd: Engineered Quartz Manufacturer's IPO Launch|Motilal Oswal

Global Surfaces, India's Leading Quartz Maker, Launches IPO

Just when the IPO scene in India looked bleak, Global Surfaces Limited, a company involved in the manufacture of products made from natural stones, announced that it would be coming out with a public issue in March 2023.

The company filed the Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India last year and followed it up by filing the final Red Herring Prospectus (RHP) on February 28, 2023. 

Want to know more details about the upcoming IPO 2023 from Global Surfaces Limited? Continue reading to find out. 

Company Overview

When investing in an upcoming IPO, it is important to first get to know the company’s business. Here’s a brief overview of what the company does. 

Incorporated in 1991, Global Surfaces Limited is in the business of processing a wide range of natural stones. It also manufactures engineered quartz, which is used to make countertops, cut-to-size slabs, flooring and wall claddings. 

All of the products of the company are manufactured out of two production units. The first one is located in the RIICO Industrial Area of Jaipur, with the second facility located at Mahindra World City SEZ, which is also in Jaipur. 

Global Surfaces Limited has almost 32 different types of engineered quartz, categorized under four different series - Prismatic, Aurora, Kalmasa and Aurora. In the natural stone collection, the company has four different types - granites, marbles, soft quartzites, phyllites and soapstones. 

Company Financials

Taking a look at the company’s key financial metrics should give you a good idea of its past performance, which is crucial to determine whether you should invest in the IPO or not. So, here’s a table outlining the key metrics of the company for the past three financial years and the September 30, 2022 quarter. 

(figures are in ₹ crores)

Particulars As of September 30, 2022 FY22 FY21 FY20
Equity Share Capital 33.862 33.862 6.45 6.45
Networth 148.93 134.03 98.434 64.484
Total Borrowings 50.519 37.282 37.46 53.487
Operating Revenue 97.978 190.313 175.371 163.291
EBITDA 19.23 41.804 47.433 40.316
Profit After Tax 13.588 35.634 33.932 20.964
Diluted Earnings Per Share (EPS) 4.01 10.52 10.02 6.19
Return on Capital Employed (RoCE) 7.89% 20.85% 35.75% 32.95%
Return on Equity (ROE) 9.12% 26.59% 34.47% 32.51%
Net Asset Value (NAV) per equity share 43.98 39.58 152.61 99.98


Note: Except for Diluted EPS, RoCE, ROE and NAV per equity share, all other figures are expressed in ₹ crores.


Key Strengths of the Company 

According to the company’s latest Red Herring Prospectus filed with the SEBI, the following are some of the key strengths that give it an edge over its competitors. 

  • Diversified product portfolio with a wide range of attractive designs
  • Strong presence in the international markets 
  • Extensive production quality checks ensure a reduction in losses
  • Effective Research & Development unit for developing new products 
  • Experienced promoters operating with a result-oriented approach 

Key Risks for the Company 

Similar to the strengths, the company has also listed certain key risks that its business faces. Here’s a closer look at what they are. 

  • A major part of the revenue is from a few top customers 
  • Exports to the U.S.A. form a significant part of the company’s revenues
  • Over-reliance on the Mundra port for the export of products 
  • Business requires extensive working capital 

Details of the IPO

Seeing as the company has filed the final RHP with the SEBI, the public issue is very close to opening up for subscription. Here are some of the important details that you need to know about this upcoming IPO. 

The IPO features two components - a fresh issue component and an Offer for Sale (OFS) component. Through the fresh issue, the company would be selling around 85,20,000 equity shares to the public. And through the OFS, the promoters of the company are planning to sell 25,50,000 equity shares that they hold. This brings the size of the entire IPO of the company to about 1,10,70,000 equity shares worth ₹154.98 crores. 

The pricing of the IPO has also been announced by the company. Since it is a book-built issue, the price band would be ₹133 to ₹140 per share, with the minimum lot size being 100 shares.

Out of the entire issue, around 50% has been reserved for Qualified Institutional Buyers (QIBs), 35% of it has been reserved for retail investors and 15% for Non-Institutional Investors (NIIs). 

Objects of the Offer

According to the Red Herring Prospectus, Global Surfaces Limited plans to use the funds that it raises via this IPO for satisfying the following objectives. 

  • For investing in the company’s wholly owned subsidiary - Global Surfaces FZE - which would be used to partly fund its engineered quartz manufacturing facility in The Jebel Ali Free Zone, Dubai. 
  • For general corporate purposes 


At the outset, the Global Surfaces Limited IPO seems like a very good public issue. However, before you proceed to invest in it, remember to read through the entire RHP of the company. This will give you an idea of whether it is a good investment or not.

When it comes to investing in such upcoming IPOs, having an active demat account is a mandatory prerequisite. That said, if you don’t have one, you can visit the website of Motilal Oswal to quickly open a demat account and a trading account. The demat account opening process is paperless and shouldn’t take more than a few minutes to complete.


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