Euro Pratik Sales IPO Ahead! Check Key Risks, Strengths, Other Details; What Does IPO GMP Today Indicate?

Euro Pratik Sales Limited IPO Opens For Subscription Soon: Maharashtra-based Euro Pratik Sales IPO is all set to open for subscription on Tuesday. A day before the opening of IPO subscription, there has been a huge investor interest around Euro Pratik Sales IPO gmp today (grey market premium).

The Rs 451 crore IPO comprises of offer for sale (OFS), of 18.3 million shares and no fresh issue component. For investors who are willing to invest in the IPO, here are all the details about it.

Euro Pratik Sales IPO To Open For Subscription: Price Band, Issue, Size, Other Info
Euro Pratik Sales IPO is an entirely offer for sale of 1.83 crore shares of Rs 451.31 crore. The IPO will open for subscription on September 16 and will close on September 18. The IPO will be listed on the BSE and NSE in September's fourth week.

The company has fixed IPO price band at Rs 235 to Rs 247 per share. The lot size for investment is 60 and the minimum amount of investment required by a retail investor is Rs 14,280, based on the upper price band. Euro Pratik Sales IPO lot size investment for sNIIs is 14 lots, equivalent to Rs 2,07,480, and for BNII, the lot size is 68 lots, equivalent to Rs 10,08,760.

Euro Pratik Sales IPO GMP Today

The Euro Pratik Sales IPO last GMP indicates muted investors' interest towards the offer. Its latest IPO GMP today stood at Rs 0, according to investorgain.com. The company's estimated listing price is Rs 247 per share as it is expected to make a percentage gain or loss of 0%.

Euro Pratik Sales IPO Subscription Ahead: Key Risks To Know

The company mainly operates in the business of decorative wall panels and decorative laminates industry as a seller and marketer of Decorative Wall Panels and Decorative Laminates. Here are the key risks associated with the company's business, according to SBI Securities.

Forex Risk

Most of the primary materials imported are from contract manufacturers overseas, hence most of the trade and contract payments are done either in the USD or CNY. Any adverse rate fluctuations could significantly impact the cost of these materials.

"As of FY23/FY24/FY25, EPSL's goods purchased in foreign currencies as a % of total purchases stood at 81.2%/92.2%/54.8% respectively. The company does not enter into any hedging transactions; hence, any adverse exchange rate fluctuations may affect the company's performance," noted SBI Securities in its report.

Concentration on Suppliers

The company operates on asset asset-light model, which means that it relies less on physical assets to ensure low capital investment. The business is executed using partnerships, outsourcing, or third-party services.

"As the company operates on an asset-light model, it does not manufacture any goods and is dependent on independent suppliers. As of FY23/FY24/FY25, goods purchased from Top 10 suppliers stood at 87.9%/91.7%/52.8% respectively, while goods purchased from the top supplier Miga, South Korea stood at 56.2%/70.6%/24.0% respectively," as per SBI Securities report.

Dependency on Distributors

The company's distributor network is primarily concentrated to its top thirty distributors; hence, any inability to retain key distributors on terms that are commercially reasonable or if there is any reduction in the volume of business with such distributors may hurt the company's performance, noted the brokerage.

Euro Pratik Sales IPO Key Highlights

Strong Portfolio

The company offers a wide range of products in more than thirty categories. Its unique designs, innovating products and various first-to-market wall panel products make it stand out from competitors.

Asset-Light Business

Euro Pratik Sales' asset-light business model will serve as a double-edged sword for the company. According to SBI Securities report, the model will help the company to minimise the requirement of capital investment in substantial capital investment.

Pan India Presence

The company's strong presence across the Indian market as well as international markets has helped it to build a strong business model. As at Mar'25, the company had a distribution network of 180 distributors across 25 states and 5 union territories in India.

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