Euro Pratik Sales plans to tap capital markets for Rs 730 crore fund raise via IPO, files draft papers with SEBI

Euro Pratik Sales IPO

Euro Pratik Sales, which sells decorative wall panels and decorative laminates, plans to tap capital markets for mobilising Rs 730 crore via initial public offering as it has filed draft red herring prospectus with the SEBI on January 20 for the said fund raise.

The IPO consists of entirely offer-for-sale by promoters, with no fresh issue component, as per the DRHP. As it is a complete offer-for-sale, the entire IPO proceeds will go to the selling shareholders.

Promoters own 87.97 percent stake in the company, and the remainder 12.03 percent shares are held by the public shareholders.

The Mumbai-based company sells decorative wall panels and laminates under two brands Euro Pratik and Gloirio, for which it has engaged Hrithik Roshan and Kareena Kapoor Khan as the brand ambassadors, respectively. It offers consumers over 30 product categories and over 3,000 designs, through 172 distributors across 25 states and five union territories in India.

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Euro Pratik Sales that competes with listed entities like Greenlam Industries, Asian Paints, Berger Paints India, and Indigo Paints, reported some inconsistency in its financials in the past years. Profit in the fiscal 2024 grew by 5.6 percent to Rs 62.9 crore compared to previous year, but revenue during the same period dropped 15.9 percent to Rs 221.7 crore, from Rs 263.6 crore primarily due to increased focus on high margin products.

Profit in six months period ended September 2024 stood at Rs 43.4 crore on revenue of Rs 136.1 crore.

Axis Capital, and DAM Capital Advisors are appointed as the merchant bankers for the issue.