Epack Prefab IPO opens: Pricey valuations, strong order book make it a long-term play

Epack Prefab Technologies opened its Rs 504 crore IPO for subscription on Wednesday. The book build issue comprises a fresh issue of shares worth Rs 300 crore and an offer-for-sale aggregating Rs 204 crore. The price band has been fixed at Rs 194–204 per share, with investors able to bid for a minimum lot of 73 shares.

At the upper end of the price band, the Gurugram-headquartered company will command a post-issue market capitalisation of about Rs 2,049 crore. The grey market premium (GMP) is currently hovering at Rs 14, implying an upside of nearly 7% over the issue price.

Business profile

Epack Prefab Technologies operates in two verticals: pre-engineered building (PEB) solutions and expanded polystyrene (EPS) packaging products.

The company provides end-to-end prefab steel building solutions for industrial, commercial, residential, and infrastructure sectors under the brand Epack Prefab, and manufactures EPS blocks, sheets, and moulded products for packaging applications under Epack Packaging.

It runs three prefab manufacturing units across Uttar Pradesh, Rajasthan, and Andhra Pradesh, and one EPS packaging plant in Greater Noida. As of March 2025, the company had completed over 4,400 projects for nearly 2,000 clients, including Havells India, Asahi Glass, Safari Manufacturing, and India Glycols.

Epack holds around 8% domestic market share in EPS packaging and has an order book of over Rs 916 crore in its prefab business. It is also expanding capacity by 24,000 MTPA at Mambattu (Andhra Pradesh) and 8,00,000 sq. m. of sandwich panel production at Ghiloth (Rajasthan) using IPO proceeds.

Financial performance

The company has posted strong growth, with revenue rising from Rs 656.8 crore in FY23 to Rs 1,134 crore in FY25, a CAGR of over 30%. Net profit climbed from Rs 24 crore in FY23 to Rs 59 crore in FY25, while EBITDA margins improved from 7.8% to 10.4% during the same period.

Valuation and recommendation

At the upper price band, Epack Prefab seeks a P/E of 34.5x on FY25 earnings, with EV/EBITDA at 15.4x. While valuations appear on the higher side, analysts believe the company’s strong order book, marquee client relationships, and capacity expansion plans offer long-term growth potential.

"We assign a Subscribe for long term rating to the issue," said Rinkle Vira, Research Analyst at Anand Rathi.

The issue will close on September 26, and allotment is expected on September 29. Shares will list on both NSE and BSE.

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