IPO closes on 26 Sep'25
Epack Prefab Technologies Ltd
Minimum Investment
₹ 14,892 / 73 shares
Our Verdict:
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- Epack Prefab Technologies Ltd (EPTL) has delivered impressive revenue and earnings growth over the past three years, backed by industry-leading return metrics. Its solid order book supports sustained growth. The company now intends to use the IPO funds for enhancing its manufacturing capabilities and reduce debt.
- Valuation appears reasonable with a P/E multiple of ~27x, given the company’s proven track record and healthy growth outlook.
- The IPO offers exposure to a niche segment within the building materials industry. While the sector is expanding, risks remain due to its smaller size and dependence on economic and commodity cycles, particularly steel.
- Overall, the issue looks attractive for investors with a long-term perspective.
About the company
Founded in
12 Feb'99
Managing director
Sanjay Singhania
- EPTL operates in two key industries: Pre-Engineered Buildings (PEB) and Prefabricated Structures, where it specializes in turnkey steel buildings, modular structures, Light Gauge Steel Frame (LGSF) systems and Sandwich Insulated Panels. The company also provides Expanded Polystyrene (EPS) Packaging Solutions, producing EPS sheets, block-molded and shape-molded products used in sectors such as construction, packaging, consumer goods and industrial applications.
- EPTL runs 3 PEB manufacturing facilities and 1 EPS packaging facility. By FY24, it ranked third in India for PEB production with a capacity of 1,33,922 MTPA. Additionally, it has 5,10,000 SQM for Sandwich Panels and 8,400 MTPA for EPS production. In the PEB segment, the company has delivered large-scale projects for major Indian companies, including Hero MotoCorp, ASK Automotive, Ashok Leyland, Reliance Industries, Havells India and JK Tyres.
STRENGTHS
- Rapid Growth: EPTL has emerged as the fastest-growing company in terms of revenue from operations, achieving a 41.79% CAGR between FY22-24. The Pre-Fab business has seen even more remarkable growth, with a 55.48% CAGR during the same period. Additionally, EPTL ranks third in production capacity within the PEB industry.
- Solid Performance: From FY23 to FY25, EPTL achieved outstanding growth, with operating revenue growing at a 31% CAGR, EBITDA increasing by 51% and net profit surging by 57%.
- Margin Expansion: EPTL has consistently improved its margins, with net margin rising from 3.63% in FY23 to 5.20% in FY25 and EBITDA margin growing from 7.85% to 10.39%.
- Strong Return Metrics: EPTL boasts robust return ratios, with Return on Equity (ROE) of 22.69% and Return on Capital Employed (ROCE) of 22.88% in FY25—among the highest in the sector.
- Robust Order Book: The order book for its Pre-Fab business stood at Rs 916.96 crore as at 31 March 2025, ensuring a pipeline for sustained growth.
- Client Loyalty: EPTL enjoys a 43% repeat order rate in FY25, reflecting strong customer trust and long-term relationships.
RISK FACTORS
- Client Concentration: EPTL generates a significant portion of its operating revenue from a limited group of clients. In FY25, the top 10 clients accounted for 70.97% of the operating revenue. A loss or reduction in business from any of these key clients could materially impact the company’s financial performance.
- Cash Flow Concerns: EPTL has reported negative cash flow from investing activities over the past three fiscal years. Prolonged negative cash flows could negatively affect its overall financial stability.
- Contingent Liabilities: As of March 31, 2025, EPTL’s contingent liabilities and capital commitments amount to Rs 393.8 crore. If these liabilities materialize, they could adversely affect the company’s operations, cash flow, and financial health.
- Group Company Losses: Some of EPTL’s group companies reported losses in FY24 and FY23. Persistent losses by these subsidiaries and group companies could adversely impact the firm’s overall business and results of operations.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 504 crore
Fresh Issue
₹ 300 crore
OFS
₹ 204 crore
Price range
₹ 194 - 204
Lot size
73 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Establishing a new facility in Rajasthan for the production of continuous Sandwich Insulated Panels and pre-engineered steel buildings;
- Expanding the existing manufacturing plant in Andhra Pradesh to enhance the capacity for pre-engineered steel buildings;
- Repaying or pre-paying certain borrowings availed by the company; and
- General corporate purposes.
Dates
Bidding open
24 Sep'25
Bidding close
26 Sep'25
Allotment date
29 Sep'25
Refund date
30 Sep'25
Listing
1 Oct'25
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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