Euro Pratik Sales IPO Details
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About Euro Pratik Sales Limited IPO
Euro Pratik Sales Limited is planning an IPO with offer for sale of equity shares with a face value of ₹1 each, aggregating up to ₹730 crores. The company's promoters are Pratik Gunvantraj Singhvi, Jai Gunvantraj Singhvi, Pratik Gunwantraj Singhvi HUF and Jai Gunwantraj Singhvi HUF. The IPO will open on TBA and close on TBA. The shares will be allotted on TBA and the refunds will be initiated on TBA.
Objectives of Euro Pratik Sales Limited IPO
The company will not receive any proceeds from the offer as the IPO is completely offer for sale and there is no fresh issue.
Euro Pratik Sales Limited IPO Valuation
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Investors (NIIs) | Not less than 15% of the net offer |
Retail-individual Investors (RIIs) | Not less than 35% of the net offer |
Industry Outlook
The decorative wall panels and decorative laminates industries are projected to experience robust growth. Valued at ₹2,418.01 crore and ₹9,493.12 crore in Fiscal 2024, these industries are expected to expand significantly, driven by rising disposable incomes, urbanisation, and consumer demand for premium, durable products. By Fiscal 2029, they are projected to grow at a compound annual growth rate (CAGR) of 17.89% and 9%, respectively, reaching ₹5,506.81 crore and ₹14,606.34 crore. This growth reflects the increasing adoption of decorative products for enhancing residential and commercial spaces. Global trends also suggest a similar upward trajectory, aligned with evolving lifestyle preferences and modernisation.
Company Information
Euro Pratik Sales Limited operates as a prominent seller and marketer of decorative wall panels and decorative laminates in India, with a significant market share of 15.87% by revenue in the organised decorative wall panels industry. The company develops differentiated design templates for its products, tailored to meet contemporary architectural and interior design trends, which has led to its recognition as product innovators at India Coverings Expo from 2019 to 2022. Euro Pratik and Gloirio, its flagship brands, are built on principles of quality, reliability, innovation, and consumer satisfaction, supported by a merchandising approach that involves in-house design capabilities and strategic product placement. As of September 30, 2024, the company offered a wide range of products in India, including over 30 product categories and more than 3,000 designs, positioning itself as a fast-fashion brand in the decorative wall panels and decorative laminates industries.
Euro Pratik Sales Ltd Strengths
Market leadership
Euro Pratik Sales Limited holds a commanding 15.87% market share in the organised decorative wall panels industry, establishing itself as one of India's leading brands. With a total revenue of ₹1,74.28 crores in FY 2023, the company has strategically positioned itself through brand building while maintaining core values of quality, reliability, innovation, and consumer satisfaction.
Comprehensive product portfolio
The company offers over 30 product categories and 3,000 designs across decorative wall panels and laminates as of September 2024. As innovators of first-to-market products like Louvers, Chisel, and Auris, it enjoys early mover advantages that allow premium pricing and higher margins. Its diverse offerings include eco-friendly, anti-bacterial, and moisture-resistant options at various price points.
Strategic growth through acquisitions
Euro Pratik has significantly expanded operations through strategic acquisitions, integrating companies like Millennium Decor (founded 2021), Vougue Decor (2018), and Euro Pratik Laminate LLP (2020). These acquisitions have diversified its product range, provided access to wider distribution channels, and expanded its geographical presence, now serving 40 distributors across India through its subsidiary Gloirio.
Risks of Euro Pratik Sales Limited IPO
Dependence on contract manufacturers
Euro Pratik Sales Limited heavily relies on contract manufacturers, particularly Miga, South Korea, for product manufacturing. In recent periods, up to 70.56% of its total product value was manufactured by a single contractor. This concentration poses a significant risk, as any disruption or loss of these manufacturing relationships could severely impact its business operations and financial condition.
Lack of in-house manufacturing facilities
The company operates on a contract manufacturing model, outsourcing all production to third parties. This exposes it to various risks, including potential design theft, supply chain disruptions, quality control issues, and vulnerability to operational problems at manufacturing facilities. Additionally, it faces risks related to equipment failures, labor disputes, and regulatory non-compliance at its contractors' sites, which could adversely affect its business.
High dependence on decorative wall panels
A substantial portion of Euro Pratik's revenue, ranging from 54.97% to 76.54% in recent fiscal years, comes from the sale of decorative wall panels. This concentration in a single product category makes the company vulnerable to market fluctuations, changes in consumer preferences, or increased competition in this specific segment. Any decline in demand or margins for decorative wall panels could significantly impact its financial performance.
All Financial Information about Euro Pratik Sales Ltd
Anchor Investor Bidding Date: TBA
**Registrar: MUFG Intime India Private Limited Book Running Lead Managers: Axis Capital Limited, DAM Capital Advisors Limited
Business Model
Euro Pratik Sales Limited manufactures decorative wall panels and decorative laminates. They operate an asset-light business model, focusing on product design and development while outsourcing manufacturing processes to contract manufacturing partners like Miga, South Korea. As of September 30, 2024, the company worked with 26 contract manufacturers across multiple countries including South Korea, China, United States, Romania, Turkey, Indonesia, and Portugal. This outsourcing strategy minimises the need for substantial capital investment in production facilities and equipment while providing flexibility to select manufacturers based on specific product design requirements and technologies. The asset-light approach allows Euro Pratik to allocate resources to strategic areas such as design, branding, merchandising, consumer service, and market expansion, enabling design-led product development and growth.
Company Growth Trajectory
Euro Pratik Sales Limited's revenue from operations decreased from ₹263.58 crores in FY 2023 to ₹221.69 crores in FY 2024, representing a 15.9% decline, though the company had previously shown growth from ₹211.91 crores in FY 2022 to ₹263.58 crores in FY 2023. Despite the revenue decline in FY 2024, the company's EBITDA improved from ₹83.63 crores in FY 2023 to ₹89.00 crores in FY 2024, with EBITDA margin expanding significantly from 31.73% to 40.15% during the same period.
Market Position
The company holds 15.7% share of the decorative laminates and decorative wall panels market. This highlights the company’s prominent position in the said industry. According to the Technopak Report, we are one of India’s leading decorative wall panel brands and have established themselves as one of the largest organized wall panel brands. Their total revenue from the decorative wall panels sold during Fiscal 2023 was ₹1,742.89 million. From FY 2024, they began exporting their products to over six countries across Asia and Europe. They are actively sourcing and delivering products in Singapore, UAE, Australia, Bangladesh, Burkina Faso and Nepal.
Euro Pratik Sales Limited Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 230.10 | 268.55 | 215.67 |
Profit Before Tax (in ₹ crores) | 84.58 | 80.14 | 59.56 |
Profit After Tax (in ₹ crores) | 62.90 | 59.56 | 44.52 |
EPS (Basic) | ₹6.19 | ₹5.85 | ₹4.37 |
EBITDA (in ₹ crores) | 89.00 | 83.63 | 62.16 |
Euro Pratik Sales Limited Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 84.58 | 80.14 | 59.56 |
Net Cash Generated/ Used from/ in Operating Activities (in ₹ crores) | 74.67 | 57.09 | 16.32 |
Net Cash (used in)/ generated from investing Activities (in ₹ crores) | (28.12) | (9.74) | (11.35) |
Net Cash used in Financing Activities (in ₹ crores) | (42.36) | (48.39) | (3.49) |
Net Cash and Cash Equivalents at the end of the year (in ₹ crores) | 4.19 | (1.04) | 1.47 |
Cash and cash equivalent at the end of the year | 10.455 | 6.260 | 7.304 |
How to Check Allotment Status of Euro Pratik Sales Limited IPO?
- Visit the Registrar's Website
To check the IPO allotment status for Euro Pratik Sales Limited IPO, visit the official website of MUFG Intime India, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.
- Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.
On the BSE IPO page, follow these steps
- Select 'Equity' from the dropdown menu
- Choose 'Euro Pratik Sales Limited' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search'
Your Euro Pratik Sales IPO allotment status will be displayed.
- Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Euro Pratik Sales IPO allotment status.
Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit'. Your Euro Pratik Sales IPO bid and allotment details will be displayed.
How to Apply for Euro Pratik Sales Limited IPO?
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Euro Pratik Sales IPO FAQs
What is the Euro Pratik Sales IPO?
Euro Pratik Sales IPO consists of an offer for sale of up to ₹730 crores, with no fresh issue.
Is Euro Pratik Sales IPO coming?
Yes, Euro Pratik Sales Ltd is expected to come up with its IPO soon.
Who is the chairman of Euro Pratik Sales?
Pratik Gunvantraj Singhvi is the chairman of Euro Pratik Sales.
What is the lot size of shares of Euro Pratik Sales Ltd IPO?
The company hasn’t given any information on the lot size yet.
From where can I read more about the IPO of Euro Pratik Sales Ltd?
You may read more about Euro Pratik Sales and its IPO from the company’s draft red herring prospectus (DRHP) here.
