Global Surfaces Limited Review:

Global Surfaces Limited incorporated on August 23, 1991, is engaged in the business of processing natural stones and manufacturing engineered quartz. The company’s products have applications in flooring, wall cladding, countertops, cut-to-size, and other items. Their products are used in both commercial and residential industries and are sold within and outside India.  

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Global Surfaces has 2 units, Unit-I located at RIICO Industrial Area, Jaipur, and Unit-II at Mahindra World City SEZ, Jaipur, both in Rajasthan for processing and manufacturing of their products. The majority of their operating revenues comprise export sales and approximately 98% of their revenues from operations have been derived from exports during the period ended September 30, 2022. They are focused on exporting their products and have exported to the United States of America, Canada, Australia, and the Middle East.

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Promoters & Shareholding:

Mayank Shah is the promoter of the company. 

Pre Issue Share Holding73.55%
Post Issue Share Holding55.46%

Public Issue Details:

Offer for sale: OFS of approx. 2,550,000 equity shares at Rs. 10, aggregating up to Rs. 35.7 Cr and fresh of approx. 3,050,847 equity shares at Rs. 5, aggregating up to Rs. 119.28 Cr.

Total FPO Size: Rs. 154.98 Cr.

Price band: Rs. 133 – Rs. 140.


  1. For Investment in the wholly owned subsidiary and for part-financing its capital expenditure requirements.
  2. General corporate purposes.

Bid qty: minimum of 100 shares (1 lot) for Rs. 14,000 and maximum of 14 lots.

Offer period: Mar 13, 2023 – Mar 15, 2023.

Date of listing: Mar 23, 2023.

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  1. Wide product portfolio and multiple designs.
  2. Established presence in international markets.
  3. The company has developed effective quality checks thereby reducing loss.
  4. The company has an in-house R&D facility.
  5. Experienced promoters and strong leadership.


  1. Dependent on a few customers for a major part of its revenues.
  2. The company does not have long-term agreements with suppliers of raw materials.
  3. A major portion of revenue is derived from the United States and any disruption in relation with India will negatively impact the company and its business.
  4. Business is highly capital intensive.

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Subscribe or avoid?

Sectorial outlook – Globally, the natural and engineered stone (combined) market accounted for $65,746 million in 2022 and is expected to reach $114,504 million by 2032. In the year 2022, the natural stone segment accounted for a major 59% of the market share with $38,829 million while the contribution of the engineered stone segment stood at $26,917 million. However, in projected years between 2022 and 2027, engineered stone is expected to grow at a higher CAGR of 6-7% as compared to natural stone which is expected to grow at a CAGR of 5-6%. Based on application, the market has been classified into flooring, wall cladding, cut-to-size items, and others. Among these, the flooring segment accounted for the highest share of 52% of the total market in 2021 and is estimated to hold this share in 2022.  It is further expected to grow at a CAGR of 6-7% and reach $48,674 million in 2027. Compared to engineered stones, natural stones occupied a larger share of the flooring segment in 2021. This is because, natural stone flooring is elegant, has superior durability, and is easy to clean. The natural stone segment of North America is valued at an estimated $7,886 million in 2022 and is expected to grow at a CAGR of 5-6% between 2022 and 2027. Going forward, the North American market is expected to reach $12,396 million by 2032. All the above factors might have a positive impact on the company and the industry it’s operating in.

The financials (revenue and net profit) are shown in the graph below:

Valuation – For the last 3 years average EPS is Rs. 8.91 and the P/E is around 15.71x on the upper price band of Rs. 140. The EPS for FY22 is Rs. 10.52 and the P/E is around 13.3x. If we annualize Q2-FY23 EPS of Rs. 4.01, P/E is around 17.45%. It has Pokarna Limited (12.8x) as its listed peer as per the RHP. The company’s P/E is between 15.71x and 17.45x. ROA is around 4.8%, and ROE and ROCE are currently 9.12% and 7.89% respectively. Revenue has been growing consistently and the margins have also been consistent. 

Recommendation – Global Surfaces has grown from a single-category to a multi-category stone manufacturing company and It also has been able to consistently grow its revenue and maintain margins now through this IPO it plans to expand its presence in the international markets by proposing to use the proceeds to set up a new facility in Dubai, UAE for manufacturing engineered quartz.   

After considering all the factors, the listing still seems to be fully priced looking at its current financials and its peer hence we would recommend investors to “Avoid” this IPO, interested investors can keep this company on their watch list and may look to buy in future on dips.


This article should not be construed as investment advice, please consult your Investment Adviser before making any investment decision.

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