Epack Prefab
IPO Size: Rs. 504 cr
- Rs. 300 cr Fresh Issue for (i) capex Rs. 161 cr - greenfield Rs. 103 cr, brownfield Rs 58 cr (ii) debt repayment Rs. 70 cr, of Rs. 224 cr gross debt
- Rs. 204 cr Offer For Sale (OFS) by the promoters (87% to reduce to 65%)
Price band: Rs. 194-204 per share
- In Dec 2024, company raised Rs.130 cr from GEF Capital at Rs. 158 per share
M cap: Rs. 2,049 cr, implying 25% dilution
IPO Date: Wed 24th Sep to Fri 26th Sep 2025, Listing Wed 1st Oct 2025
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
India’s 3rd Largest Pre-engineered Steel Buildings (PEB) Manufacturer
Epack Prefab is a Noida-based manufacturer of:
- Pre-engineered Steel Buildings, having 3 plants in UP, Rajasthan, Andhra Pradesh, with 1.27 lakh MTPA of pre-engineered capacity and 5.1 lakh SQM of Sandwich Insulated Panel capacity
- Expanded polystyrene sheets (EPS) packaging used in consumer durables. 8,400 MTPA installed capacity was 76% utilised.
PEB segment accounts for 85% of company’s Rs. 1,100 cr revenue, and EPS segment the balance.
Nearly Doubled in Size in last 2 Fiscals
Company has nearly doubled fixed assets from Rs. 114 cr as of 31.3.23, to Rs. 202 cr as of 31.3.25. Operating at an asset turnover ratio of over 5x, FY25 revenue rose to Rs. 1,134 cr, from Rs. 656 cr in FY23. It clocked EBITDA of Rs. 122 cr in FY25, leading to 10.7% EBITDA margin and a PAT of Rs. 59 cr, translating into 5.2% margin. EPS for FY25 stood at Rs. 7.4 with RoE of 23% on Rs. 350 cr net worth.
Undertaking Capex
As sandwich insulated panel capacity was utilized 72% in FY25, it is expanding 8 lakh SQM capacity at Andhra plant, represented by Rs. 56 cr capital work in progress, as of 31.3.25, being funded through internal accruals and debt.
From the IPO proceeds, it plans:
- Brownfield expansion to increase PEB capacity by 25,500 MTPA, at Andhra for Rs. 58 cr, estimated to be operational by April 2026
- Greenfield expansion to add 8 lakh SQM Sandwich Insulated Panel capacity and 11,300 MTPA PEB capacity, at Rajasthan with Rs. 103 cr investment, by June 2026.
Thus, in the next 1 year, sandwich insulation capacity will more than double, while PEB capacity, which is 50% utilised now, will rise by 27%.
Sector Tailwinds
Due to cost and time advantage over RCC, PEBs are increasingly being adopted in industrial, commercial and infrastructure sectors. Demand is expected to growth in double-digit over the next 4-5 years, and Epack looks poised to make the best of this opportunity.
Pricing for Growth
M cap of Rs. 2,049 cr, leads to FY26E EPS of Rs. 21, on an estimated EPS of ~Rs. 9.8. This is only slightly lower than Interarch’s 24x (despite 7% net margin, against 5% Epack) and close to recently listed M&B Engineering’s 22.5x, both of which, have posted healthy growth in Q1FY26 financials.
Epack Prefab can continue with its high growth, as new capacities having potential of about Rs.600 cr incremental topline by FY27E. While the IPO valuation multiple is not a screaming buy, it can be a good bet in the long term.
Group company Epack Durable’s IPO in Jan 2024 has rewarded investors, with m cap rising 60% in 1.5 years to Rs. 3,600 cr, from Rs. 2,200 cr at the time of IPO.
23rd Sep 2025 at 09:43 pm