Mumbai-based Decorative Wall Panel and Premium Laminates brand Euro Pratik Sales Limited, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise Rs 730 crore through Initial Public Offering (IPO).
The IPO, with a face value of Re 1, is entirely an offer for sale up to Rs 730 crore by Promoter and Promoter Group Selling Shareholders. It includes a subscription reservation for eligible employees in the employee reservation portion.
The offer for Sale consists of shareholders selling shares up to Rs 45.70 crore by Pratik Gunvantraj Singhvi, up to Rs 45.10 crore by Jai Gunvantraj Singhvi, up to Rs 253.40 crore by Pratik Gunwantraj Singhvi HUF, Rs 253.40 crore by Jai Gunwantraj Singhvi HUF, up to 66.20 crore by Dipty Pratik Singhvi, and Rs 66.20 crore by Nisha Jai Singhvi.
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively.
With a combined leadership experience of over 3 decades, Euro Pratik is a leading player in India's Decorative Wall Panel industry, commanding a 15.87% market share by revenue in the organized segment, as highlighted in the Technopak Report. Over the years, it has developed an extensive product range catering to both residential and commercial applications which is predominantly sold under its flagship brands "Euro Pratik" and Gloirio."
The company operates on an asset-light model - it outsources manufacturing to contract partners across South Korea, China, and the USA, ensuring state-of-the-art designs while adhering to stringent quality standards. During the six months ending September 30, 2024, the company collaborated with 26 contract manufacturers from these countries. In Fiscal 2024, Euro Pratik commenced exports to six countries, including Singapore, UAE, Australia, and Bangladesh, Burkina Faso and Nepal.
Their products are crafted from recycled materials, free of heavy metals such as lead and mercury, and are anti-bacterial and anti-fungal, reflecting the company's commitment to sustainability.
Over the past three years, the company has scaled its operations through strategic acquisitions, consolidating businesses, and diversifying its product offerings. Key acquisitions include Vougue Decor, Euro Pratik Laminate LLP, Millenium Decor, EuroPratik Intex LLP, and Euro Pratik USA, LLC, which have significantly enhanced its portfolio and geographic reach.
To aid its marketing efforts, it has partnered with renowned celebrities Hrithik Roshan and Kareena Kapoor Khan as brand ambassadors for its "Euro Pratik" and "Gloirio" brands, respectively.
As on September 30, 2024, the company offered over 30 product categories and 3,000 designs, introducing 104 product catalogues in the past four years alone. It provides durable and eco-friendly alternatives to traditional wall decor like wallpaper, wood, and paint. Its distribution network spans 88 cities in India, with 172 distributors operating across 25 states and five union territories.
In Fiscal 2023, the company generated ?174.29 crore in revenue from its Decorative Wall Panels. The restated consolidated revenue from operations stood at ? 221.70 crore in Fiscal 2024 and Profit after tax stood at Rs 62.91 crore in Fiscal 2024.
For the six months ended September 30, 2024, restated consolidated revenue from operations stood at Rs.136.14 crore, and Profit after tax stood at Rs 43.41 crore.
Axis Capital Limited, and DAM Capital Advisors Limited are the book-running lead managers and MUFG Intime India Private Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited. |
