Euro Pratik Sales IPO subscribed 47% on Day 2 so far; GMP at 2.5%. Should You Bid?

Euro Pratik Sales (EPSL)'s Rs 451.3 crore IPO entered its second day of bidding, with an overall subscription of 47% so far. The issue saw strong demand from Non-Institutional Investors (NIIs), who subscribed to 91% of their allotted quota.

In the grey market, the IPO has started to show some movement. The Grey Market Premium (GMP) has risen slightly to 2.5%, after previously showing no premium over the issue price of Rs 247. This minor increase signals a cautious but emerging interest among unofficial market participants.

Euro Pratik Sales IPO Subscription Status

On Day 2 at 10.05 am, the Euro Pratik Sales IPO was subscribed 47% overall, based on data available from the stock exchanges.

Retail Individual Investors (RIIs): The retail investor segment subscribed to 39% of the 67 lakh shares allocated to them.

Non-Institutional Investors (NIIs): Interest from high-net-worth individuals and other non-institutional investors was comparatively stronger, with 91% of the 28.71 lakh shares in this category being subscribed.

Qualified Institutional Buyers (QIBs): Institutional participation was more muted, with only 26% of the 67 lakh shares reserved for QIBs receiving bids so far.

Euro Pratik Sales IPO GMP Today:

As of today, the Euro Pratik Sales IPO has started showing some activity in the grey market, with the Grey Market Premium (GMP) rising to Rs 2.5, after previously being at zero. This slight increase suggests a modest improvement in investor sentiment or early demand ahead of listing, though the premium remains relatively low.

Ahead of the IPO, the company successfully raised Rs 135 crore through an anchor placement, which saw participation from marquee investor Ashish Kacholia, investing via Bengal Finance.

Euro Pratik Sales IPO price band and issue size

The price band for the IPO has been set at Rs 235 to Rs 247 per share, with investors required to place a minimum bid for 60 shares. At the upper end of the price range, the company is targeting a market valuation of approximately Rs 2,524 crore.

This IPO is a pure offer for sale (OFS) by the promoters, meaning the company will not receive any fresh capital from the issue. Instead, the entire proceeds will go to the promoter group, including members of the Singhvi family.

Euro Pratik Sales IPO Key Dates

The IPO is open for bidding over a three-day window, from September 16 to September 18, 2025, during which investors can place their bids for shares.

The tentative allotment date is set for Friday, September 19, 2025, when successful applicants will be informed of the shares allotted to them. The company’s shares are expected to list on the stock exchanges on Tuesday, September 23, 2025, subject to final approvals.

About the company

Euro Pratik Sales is one of India’s leading organised wall panel brands, commanding an estimated 10% market share by revenue in FY24. Its products are sold under the ‘Euro Pratik’ and ‘Gloirio’ brands, featuring an extensive portfolio of over 3,000 designs across 30 product categories.

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

Growth has been fueled by strategic acquisitions, including Vogue Décor, Millennium Décor, and Euro Pratik Laminate LLP, which have broadened and diversified its product range. Recently, the company has expanded into international markets like the US, Europe, the Middle East, and Africa.

As of March 2025, Euro Pratik Sales had a distribution network of 180 distributors spanning 25 states and 5 union territories in India, along with a growing global presence.

Financial performance

After a muted performance in FY23 and FY24 due to challenging industry conditions, the company bounced back strongly in FY25. Revenue increased by 28% year-on-year to Rs 284 crore, while net profit rose sharply to Rs 77 crore.

Profitability remained robust, with an EBITDA margin of 35.7% and a net profit margin of 27%. Return ratios were equally strong, with a Return on Equity (ROE) of 32.8% and Return on Capital Employed (ROCE) of 43.7% for FY25.

However, analysts have highlighted some risks. The company’s heavy dependence on overseas suppliers and distributors exposes it to potential vulnerabilities. In FY25, approximately 55% of total purchases were made in foreign currencies, which could subject the business to foreign exchange fluctuations.

Valuation and outlook

At the upper end of the price band, the IPO is priced at 32.9 times its FY25 earnings. While this valuation is higher than that of the broader building materials sector, brokerages highlight that Euro Pratik Sales Limited (EPSL) distinguishes itself through superior margins and stronger return ratios compared to many of its listed peers.

In its IPO note, SBI Securities gave a ‘Subscribe’ rating for the long term, emphasizing the company’s distinctive product portfolio, wide distribution network, and robust return metrics. The brokerage also anticipates that EPSL will further increase its share in the organized market, supported by growing demand for decorative interior products both in India and abroad.

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