Euro Pratik Sales IPO GMP at zero despite Ashish Kacholia Investment. Should you bid?

Euro Pratik Sales (EPSL), a decorative wall panel and laminates brand, has opened its Rs 451.3 crore IPO for subscription on Tuesday. The three-day book-build issue will close on September 18, with listing expected on both NSE and BSE on September 22.

Ahead of the IPO opening, the company has muted demand in the grey market with GMP at Rs 0.

The company raised Rs 135 crore a day before the IPO, in which marquee investor Ashish Kacholia invested through Bengal Finance.

Euro Pratik Sales IPO price band and issue size

The price band for the issue has been fixed at Rs 235–247 per share, and investors can bid for a minimum lot of 60 shares. At the upper end of the band, the company is seeking a market capitalisation of around Rs 2,524 crore.

The entire IPO is an offer for sale (OFS) by the promoters, meaning the company will not receive fresh capital. Proceeds from the sale will go to the promoters, including members of the Singhvi family.

About the company

Euro Pratik Sales is among India’s largest organised wall panel brands with an estimated 10% revenue market share in FY24. Its products are sold under the ‘Euro Pratik’ and ‘Gloirio’ brands and include over 3,000 designs across 30 categories.

The company operates on an asset-light model, outsourcing manufacturing to global partners such as Miga of South Korea.

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It has also expanded via acquisitions, bringing in entities like Vogue Décor, Millenium Décor and Euro Pratik Laminate LLP, which help diversify its product portfolio. More recently, Euro Pratik entered international markets including the US, Europe, Middle East and Africa.

As of March 2025, the company had a distribution network of 180 distributors across 25 states and 5 union territories, apart from its overseas presence.

Financial performance

Despite a muted performance in FY23 and FY24 due to weak industry conditions, the company saw a rebound in FY25. Revenue rose 28% year-on-year to Rs 284 crore, while net profit jumped to Rs 77 crore.

Margins remain robust, with EBITDA at 35.7% and net profit margin at 27%. Return ratios are strong as well, with ROE at 32.8% and ROCE at 43.7% in FY25.

However, analysts caution that heavy dependence on overseas suppliers and distributors poses risks. Around 55% of purchases in FY25 were denominated in foreign currencies, leaving the company exposed to forex volatility.

Valuation and outlook

At the upper price band, the IPO is valued at 32.9 times FY25 earnings. Brokerages note that while the valuation looks expensive compared to the broader building materials space, EPSL enjoys higher margins and better return ratios than listed peers. The company follows an asset-light business model, enabling it to deliver strong financial performance, including EBITDA margins exceeding 35% and a return on equity (ROE) above 30%.

SBI Securities, in its IPO note, recommended subscribing for the long term, citing the company’s differentiated portfolio, strong distribution, and high return metrics. It expects Euro Pratik’s organised market share to grow further as demand for decorative interiors expands in India and abroad.

The allotment for the issue will be finalised on September 19, with refunds and credit of shares set to take place on September 20, ahead of listing on September 22.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)