Euro Pratik Sales Ltd. opened its IPO on September 16, 2025, but Day 1 investor enthusiasm was underwhelming. Despite strong anchor backing and solid financials, public subscription was tepid. Should retail investors jump in, wait, or avoid altogether?
Let’s break it down.
IPO Snapshot: The Basics
- Issue Type: 100% Offer for Sale (OFS)
- Price Band: ₹235 – ₹247 per share
- Lot Size: 60 shares
- Issue Size: ₹451.31 crore
- IPO Dates: Sept 16–18, 2025
- Listing Date (Tentative): Sept 23, 2025
- Registrar: MUFG Intime India
- Lead Managers: Axis Capital & DAM Capital
What’s notable? The entire IPO is an OFS, meaning the company itself won’t receive any fresh capital. All proceeds go to existing shareholders cashing out.
Day 1 Recap: Lukewarm Response
- Overall subscription: 0.10x
- QIBs: 0 bids
- Retail Investors: 0.07x
- Non-Institutional Investors (NII): 0.29x
- GMP (Grey Market Premium): ₹0
The zero GMP is a red flag—it signals no expected listing gains. This, paired with weak QIB interest, shows that institutions are still on the sidelines.
Yet, the company raised ₹135 crore from anchor investors like Ashish Kacholia and Motilal Oswal MF, a sign of early institutional confidence.
What Does Euro Pratik Do?
Euro Pratik is a Mumbai-based brand in the decorative interiors space, offering wall panels, laminates, and other design-forward products. Think of it as a “fast fashion” label for home design.
Key Highlights:
- Over 3,000 designs across 30+ categories
- Pan-India presence: 180 distributors across 116 cities
- Big names behind the brand: Hrithik Roshan is the brand ambassador
- Outsourced production: Relies on partners like Miga (South Korea)
- 10% market share in organized wall panels (FY24)
The asset-light model helps the company focus on design and sales, not manufacturing.
Financials: Strong Performance in FY25
After flat years, FY25 brought a bounce-back.
| Metric | FY24 | FY25 | YoY Growth |
|---|---|---|---|
| Revenue | ₹222 Cr | ₹284 Cr | +28% |
| Net Profit | ₹63 Cr | ₹76.4 Cr | +21.5% |
| EBITDA Margin | – | 35.7% | – |
| ROE | – | 32.8% | – |
| ROCE | – | 43.7% | – |
These are impressive numbers, especially for a company in a niche sector.
Valuation: Fair or Pricey?
At ₹247 per share, Euro Pratik is valued at a P/E of 32.9x (FY25 earnings).
That might sound steep—but its peers trade even higher:
- Greenlam Industries: 87.5x
- Asian Paints: 62.6x
- Berger Paints: 55.7x
With better margins and returns than some rivals, Euro Pratik’s valuation looks reasonable—but only if it can sustain those numbers.
Risks That Could Spoil the Picture
While the numbers are great, several serious risks could trip up long-term growth:
1. 100% OFS = No Growth Capital
The IPO raises zero funds for the company itself. That means no new money for expansion, R&D, or debt reduction.
2. Dependency on One Major Supplier
In FY25, 24% of purchases came from Miga, a South Korean firm. Any disruption here could be devastating.
3. Unhedged Forex Risk
More than half its purchases are in foreign currency—and the company does not hedge its exposure. That leaves it vulnerable to exchange rate shocks.
4. It Doesn’t Own Its Brand
Shockingly, Euro Pratik doesn’t legally own its own brand name. If that relationship sours, it could severely damage the business.
5. Negative Cash Flow
Despite profits, the company reported negative operating cash flow in FY25, which could limit its working capital and flexibility.
Expert Verdict: Should You Invest?
Here’s the bottom line:
Good for long-term investors who are okay with risk
Not ideal for short-term gains or conservative portfolios
Brokerages like SBI Securities suggest a “Subscribe for the Long Term” stance—provided you understand the risks.
Key Takeaways
- Euro Pratik has strong financials and a solid design-led business.
- The IPO’s structure and operational risks (supplier reliance, unhedged forex, no brand ownership) make it high risk.
- Anchor investor support is a plus—but public sentiment remains cautious.
- If you believe in the business and can stomach the volatility, this could be a long-term bet.
FAQs
Q1. Will Euro Pratik shares list at a premium?
Unlikely. The GMP is ₹0, suggesting no listing gains.
Q2. Is Euro Pratik a debt-heavy company?
No, but the IPO won’t reduce any liabilities since it’s 100% OFS.
Q3. What’s the biggest risk with this IPO?
Not owning its own brand and relying heavily on one supplier are major red flags.
Q4. Who should invest?
Long-term investors with a high-risk appetite looking for niche growth stories.
