GEF Capital Partners backed EPack Prefab Technologies has filed its Draft Red Herring Prospectus (DRHP) with the capital markets regulator, the Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO).
The IPO, with a face value of Rs 2, consists of fresh issues of shares up to Rs 300 crore and an offer-for-sale of up to 10 million equity shares by Promoter Group and Selling Shareholders.
Between fiscal 2022 and Fiscal 2024, among its evaluated peers, EPack Prefab Technologies registered the second-highest CAGR in operating profit before depreciation, interest, and taxes (OPBDIT) at 56.45%. In FY24, the company reported the second-highest return on equity (RoE) at 29.12% and return on capital employed (RoCE) at 28.16%. It is also the third-largest producer in the pre-engineered steel building (PEB) industry. Furthermore, the EPS Packaging Business, EPACK commanded an 8% market share in India during FY24, according to a CRISIL Report mentioned in the DRHP.
The company, in consultation with the BRLMS, may consider an issue of specified securities aggregating up to Rs 60 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.
The proceeds from the fresh issue to the extent of Rs. 101.62 crores for financing the capital expenditure requirements for setting up a new manufacturing facility at Ghiloth Industrial Area, Shahjahanpur, Alwar in Rajasthan for manufacturing of continuous Sandwich Insulated Panels and pre-engineered steel building (“Project”); Rs 58.10 crore for financing the capital expenditure towards expansion of existing manufacturing facility at Mambattu (Unit 4) in Andhra Pradesh for increasing the pre-engineered steel building capacity; Rs 70 crore for repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company; and general corporate purposes.
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.
Incorporated in 1999, EPack Prefab Technologies has a legacy spanning over 25 years and operates across two distinct business verticals, Pre-Fab Business and EPS Packaging Business. The company sells its products under the brand names ‘EPACK PREFAB’ for its Pre-Fab Business and ‘EPACK PACKAGING’ for its EPS Packaging Business. It has received a Certificate of Excellence from the Golden Book of World Records for achieving the “fastest erection of a pre-engineered factory building” at Mambattu, Andhra Pradesh.
The Pre-Fab Business provides end-to-end turnkey solutions that encompass designing, manufacturing, installation, and erection of pre-engineered steel buildings, pre-fabricated structures, and their components, catering to both domestic and international markets. The EPS Packaging Business focuses on manufacturing expanded polystyrene sheets and blocks, including EPS Block Molded and EPS Shape Molded products, serving industries such as construction, packaging, and consumer goods within India.
The company’s promoters have a proven track record of building and scaling businesses, including EPack Durable Limited and EPack Petrochem Solutions Private Limited. Within its Pre-Fab Business, the company offers a comprehensive range of solutions, including pre-engineered steel buildings, modular structures, light gauge steel frames (LGSF), Sandwich Insulated Panels, and standard modular solutions. Turnkey projects include the complete design, engineering, manufacturing, transportation, installation, and erection of pre-fabricated structures at customer sites.
As of December 31, 2024, EPack Prefab Technologies operates three manufacturing facilities in Greater Noida (Uttar Pradesh), Ghiloth (Rajasthan), and Mambattu (Andhra Pradesh), with a combined installed capacity of 133,924 MTPA for pre-engineered products and 510,000 square meters for Sandwich Insulated Panels. The company also operates three design centers located in Noida (Uttar Pradesh), Hyderabad (Telangana), and Visakhapatnam (Andhra Pradesh).
In its EPS Packaging Business, EPack offers a diverse range of lightweight, impact-resistant, and insulating products, such as EPS sheets, packaging boxes for electronic goods, and hand-molded packaging boxes. As of December 31, 2024, the company has an EPS manufacturing capacity of 8,400 MTPA. These products have applications across industries like construction, packaging, and consumer durables. In FY24, EPack’s EPS Packaging Business held an 8% market share in India, as per the CRISIL Report.
As of September 30, 2024, EPack Prefab Technologies reported the net order book of its pre-fab business was ₹658.54 crore and the pending order book stood at Rs 654.70 crore.
EPack Prefab Technologies Limited's revenue from operations increased by 37.78% from ₹656.76 crore in Fiscal 2023 to ₹904.90 crore in Fiscal 2024. Restated Profit for the year increased from ₹23.97 crore in Fiscal 2023 to ₹42.96 crore in Fiscal 2024.
For the six months ended September 30, 2024, revenue from operations stood at Rs.536.99 crore, and Profit after tax stood at Rs 27.68 crore.
The Company has made a remarkable financial performance and growth metrics over the last three fiscal years, among its peers. Between FY22 and FY24, the company recorded the fastest growth in revenue from operations, achieving a compounded annual growth rate (CAGR) of 41.79%. Its Pre-Fab Business performed even better, with a CAGR of 55.48% during the same period. This outpaced the pre-engineered steel buildings industry, which grew at a CAGR of ~8.0% from ₹13,000 crore in FY19 to ₹19,500 crore in FY24 and is projected to grow by ~8% to ₹21,000 crore in FY25.
Monarch Networth Capital Limited, and Motilal Oswal Investment Advisors Limited are the book-running lead managers and KFin Technologies 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.
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