Euro Pratik Files Draft Papers with Sebi for ₹730-Crore IPO
IPO Details
Euro Pratik, a key player in the decorative wall panel industry, has filed draft papers with the Securities and Exchange Board of India (Sebi) seeking approval for an Initial Public Offering (IPO) worth ₹730 crore. The IPO is entirely an Offer For Sale (OFS) by promoters and includes a subscription reservation for eligible employees, as per the Draft Red Herring Prospectus (DRHP) filed on Monday.
Company Overview
Euro Pratik is a prominent company in India’s decorative wall panel industry, holding nearly 16% market share by revenue in the organised segment, according to a Technopak Report. The company has developed a broad product range for both residential and commercial applications, sold primarily under its flagship brands "Euro Pratik" and "Gloirio".
Asset-Light Model and Manufacturing
The company operates on an asset-light model, outsourcing manufacturing to contract partners in South Korea, China, and the USA. During the six months ending September 2024, Euro Pratik collaborated with 26 contract manufacturers from these countries. In fiscal year 2024, Euro Pratik commenced exports to six countries, including Singapore, UAE, Australia, Bangladesh, Burkina Faso, and Nepal.
Business Expansion
Over the past three years, the company has scaled its operations through acquisitions, consolidating businesses, and diversifying its product offerings. Key acquisitions include Vougue Decor, Euro Pratik Laminate LLP, Millennium Decor, EuroPratik Intex LLP, and Euro Pratik USA, LLC, significantly enhancing its portfolio and geographic reach.
Brand Ambassadors and Financials
To support its marketing efforts, Euro Pratik has partnered with celebrities Hrithik Roshan and Kareena Kapoor Khan as brand ambassadors for its "Euro Pratik" and "Gloirio" brands, respectively. In fiscal year 2024, the company's consolidated revenue from operations stood at ₹222 crore, and Profit After Tax (PAT) was ₹63 crore.
Lead Managers and Listing
Axis Capital and DAM Capital Advisors are the book-running lead managers for the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Ltd and BSE Ltd.
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