Ashish Kacholia-stunned Euro Pratik Sales IPO opens for bidding. Do you have to subscribe to RS 451 CR output?

Euro Pratik Sales (EPSL), a decorative wall panel and the Laminates brand, has opened its RS 451.3 Crore IPO for subscription on Tuesday. The three -day Boekgebouw was closed on September 18, with mention expected on both NSE and BSE on September 22.

Prior to the IPO opening, the company has muted the demand in the gray market with GMP on RS 0.

The company raised RS 135 Crore a day before the IPO, in which Meatse investor Ashish Kacholia invested through Bengal Finance.

Euro Pratik Sales IPO prize tire and issue -size

The price band for the issue has been resolved on RS 235-247 per share, and can offer investors on a minimum of 60 shares. At the top of the band, the company is looking for a market capitalization of approximately RS 2,524 Crore.

The entire IPO is an offer for sale (OFS) by the promoters, which means that the company will not receive a new capital. The proceeds from the sale go to the promoters, including members of the Singhvi family.

About the company

The sale of Euro Pratik is one of the largest organized wall panel brands in India with an estimated market share of 10% in FY24. The products are sold under the ‘Euro Pratik’ and ‘Gloirio’ brands and include more than 3000 designs in 30 categories. The company works on an asset light model, which outsources production to global partners such as Miga van Zuid-Korea.Also read: Urban Company GMP at almost 70% on the daily day. Here is how to check the status

It has also been expanded via acquisitions, so that entities such as Vogue Décor, Millenium Décor and Euro Pratik Laminate LLP are brought in, which help to diversify its product portfolio. More recently, Euro Pratik Pratik entered international markets, including the US, Europe, the Central East and Africa.

From March 2025, the company had a distribution network of 180 distributors in 25 states and 5 trade union areas, apart from its overseas presence.

Financial performance

Despite a muted performance in FY23 and FY24 due to weak industrial conditions, the company saw a rebound in FY25. Sales rose 28% on an annual basis to RS 284 Crore, while net profit rose to RS 77 Crore.

The margins remain robust, with EBITDA with 35.7% and the net profit margin at 27%. Return ratios are also strong, with roe at 32.8% and ROCE with 43.7% in FY25.

However, analysts warn that serious dependence on overseas suppliers and distributors entails risks. About 55% of purchases in FY25 were expressed in foreign currencies, which exposed the company to Forex volatility.

Appreciation and prospects

At the top price band, the IPO is valued at 32.9 times FY25 income. Brokers note that although the appreciation looks expensive compared to the wider space of the building materials, EPSL has higher margins and better return ratios than the colleagues mentioned.

SBI Securities, in his IPO memorandum, advised to subscribe to the long term, referring to the differentiated portfolio of the company, the strong distribution and high efficiency statistics. It is expected that the organized market share of Euro Pratik will continue to grow as the demand for decorative interiors grows in India and abroad.

The allocation for the edition will be completed on 19 September, with repayments and credit of shares that will take place on 20 September, prior to the list on 22 September.

((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)