Schedule of Esprit Stones
| Issue open date | 26 Jul 2024 |
| Issue close date | 30 Jul 2024 |
| UPI mandate deadline | 30 Jul 2024 (5 PM) |
| Allotment finalization | 31 Jul 2024 |
| Refund initiation | 01 Aug 2024 |
| Share credit | 01 Aug 2024 |
| Listing date | 02 Aug 2024 |
| Mandate end date | 14 Aug 2024 |
| Lock-in end date for anchor investors (50%) | 30 Aug 2024 |
| Lock-in end date for anchor investors (remaining) | 30 Oct 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Esprit Stones
Incorporated in 2016, Esprit Stones is primarily engaged in manufacturing Engineered Stones such as (i) engineered quartz surfaces; and (ii) engineered marble surfaces. The Company majorly manufactures engineered quartz surfaces and through its Subsidiary, HSPL, The company also manufactures engineered marble surfaces. The company’s Manufacturing Facility I is equipped with three (3) pressing lines and two (2) polishing lines with a production capacity of around 72 lakh sqft. per annum. Additionally, the company commissioned its Manufacturing Facility II for the manufacturing of quartz grit and quartz powder which is the primary raw material for the manufacturing of engineered quartz.
Initially, the company’s business was only export-based. However, to capitalize on the growing demand for Engineered Stones in the domestic market, The Company launched its premium brand ‘Haiqu’ which was later renamed “Haique”.The company markets and sells its Engineered Stones in domestic and international markets through a combination of direct export sales and a network of independent distributors in the domestic market. It currently exports to over 10 countries including the USA, Canada, Egypt, Bulgaria, UAE, Saudi Arabia, etc. under white labelling.
Financials of Esprit Stones
Issue size
| Funds raised in the IPO | Amount |
| Overall | ₹50.42 crores |
| Fresh issue | ₹50.42 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Working capital requirements | 14 (27.72%) |
| Debt reduction of a subsidiary | 19.5 (38.6%) |
| Working capital for subsidiary | 6.5 (12.87%) |
| General corporate purposes | 10.42 (20.63%) |
*All figures except EPS are in ₹ crores
Strengths
- Backward Integration: To reduce the dependence on third-party raw material suppliers, The company commissioned its Manufacturing Facility II for manufacturing of quartz grit. As a result of this backward integration, The Company gained better control of such raw materials. In addition, the quartz grit produced by Manufacturing Facility II places us in an advantageous position in the event of a limited availability of quartz grit in the market.
- A prominent player in the high-growth Engineered Stones market: The Indian engineered stone market was valued at $2,611 million in 2018 and grew at a CAGR of 8% to reach $3,286 million in 2021. The industry is expected to grow at a CAGR of 7%-8% in the projected years between 2022 and 2027. By the year 2032, the Indian engineered stone market is expected to reach $7,355 million. The company believes that the continued growth of the global engineered stones market including the Indian market represents a significant future growth opportunity for its products, as they continue to penetrate new and existing markets.
Risks
- Working capital-intensive business: The company operates in a working capital-intensive industry. If it experiences insufficient cash flows to meet required payments, there may be an adverse effect on the operations and financial results.
- Reliance on top clients: The company derives nearly 62% of its revenue from its top ten customers. Any reduction in business from these top ten customers or any other major clients could have negative implications for both revenue and profitability.
- Exports-related risks: The company’s major portion of revenues (nearly 57% of total sales) are derived from exports to the United States of America and any adverse developments in this market or restrained economic or political relations of India with the United States of America could adversely affect the business.