Euro Pratik IPO Closes with Tepid 1.34x Subscription Despite Strong Fundamentals

Euro Pratik Sales Limited, a leader in decorative laminates and wall panels, has closed its ₹451 crore IPO on September 18, 2025. Over three days, the issue saw only moderate demand with a total subscription of 1.34 times - QIBs subscribed at 1.045x, Non-Institutional Buyers at 1.92x, and Retail Investors at 1.226x. While interest improved after a slower start on Day 1, the overall response remained relatively muted when compared to other recent IPOs. Notably, the GMP trend, which had briefly seen a small gain, slipped back to almost negligible levels by Day 3, pointing to limited speculative enthusiasm. With subdued secondary market buzz and an average subscription, investor focus shifts back to the company’s financial strength and long-term positioning rather than immediate listing gains.

IPO Overview

• IPO Date: September 16 to September 18, 2025
• Total Issue Size: ₹451.31 crore
• Price Band: ₹235 to ₹247 per share
• Lot Size: 60 Shares
• Tentative Allotment Date: September 19, 2025
• Listing Date: September 23, 2025 (Tentative)

Euro Pratik Sales Business Model

Euro Pratik doesn’t make decorative panels or laminates itself-it sells and markets them. It is like a fast-fashion brand, but for walls and interiors. It designs products, builds catalogs, and distributes them across India and abroad, while actual manufacturing is outsourced to 36 contract partners in India, South Korea, China, and other countries.

The company plays the role of curator and brand-builder, bringing new designs quickly to market. In just four years, it has released 113 new catalogs with more than 3,000 designs, making it one of the largest organized players in India. Its panels and laminates are used in both homes and commercial spaces, where looks and durability matter.

Objectives of the IPO

Since this IPO is 100% offer for sale, none of the proceeds will be used by the company.

All ₹451.31 crore raised will go to selling shareholders.

That means:

• No new funds for business expansion or debt repayment
• The IPO is mainly an exit route for promoters and early shareholders

Strengths:

• It holds 15.87% of the organized decorative wall panel market in India.
• PAT margin is 26%, which means the company makes ₹26 profit on every ₹100 of sales.
• Debt-to-equity is nearly zero (0.01), meaning the business is hardly borrowing to run operations.
• Celebrity tie-ups with Hrithik Roshan and Kareena Kapoor have built strong recall.
• Outsourcing manufacturing reduces heavy capital investment needs.

Risks:

• Working capital cycle is at 168 days, which means it takes 5-6 months to convert stock and receivables into cash. This strains liquidity.
• One product category (wall panels) drives 66% of revenue.
• Top 10 suppliers account for over 52% of purchases; disruption could hurt business.
• Negative cash flow of ₹30.65 crore in FY25 due to rising trade receivables and inventory pile-up.
• A fire destroyed inventory worth ₹33.59 crore in April 2025, which is not fully visible in the reported numbers.
• No IPO Proceeds for Growth: Since this is an OFS, the business won’t directly gain new investment money.

For detailed information, visit Euro Pratik Sales’s IPO page.

Peer Comparison

Although Euro Pratik is technically in decorative surfaces, not paints, analysts look at Asian Paints, Berger Paints, Indigo Paints, and Greenlam as broad peers.

• EBITDA Margin: Euro Pratik 38.7% vs peers 11-19%. This shows Euro Pratik is far more efficient at operations.
• ROE: 39% vs peers 6-20%. Investors earn ₹39 profit on every ₹100 equity in Euro Pratik compared to ₹6-20 in peers.
• Debt Levels: Near-zero debt (0.01 vs 0.02–0.96 for peers).
• Working Capital: Weakest area-168 days vs peers at 2-49 days. This means Euro Pratik locks up cash far longer.

Source: RHP, internal calculation

In short, Euro Pratik beats peers on profitability but lags on cash efficiency.

IPO Valuation

At the upper price band of ₹247, Euro Pratik’s P/E comes to 32.8x FY25 earnings. This looks cheaper compared to:

• Asian Paints: 62.6x
• Berger Paints: 55.8x
• Indigo Paints: 40.3x
• Greenlam: 87.5x

Relative to peers, the IPO looks reasonably priced, especially given higher profitability ratios. But remember, these are not exactly direct product competitors, so comparisons can only serve as rough benchmarks.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

Who’s Leading Euro Pratik Sales?

Euro Pratik’s roots go back to its promoters, Pratik Gunvantraj Singhvi and Jai Gunvantraj Singhvi. Both have been in the decorative wall surface industry for over a decade and consolidated their efforts into Euro Pratik Sales in 2010. Interestingly, the brand name itself-"Euro Pratik"-is not owned by the company but personally registered under Pratik and licensed to the firm for a one-time fee of just ₹1 lakh.

• Pratik Singhvi (Chairman & MD): Nearly 20 years of experience in wall decor. Has been instrumental in identifying trends and bringing a "fast-fashion" approach to interiors.
• Jai Singhvi (Executive Director & CFO): Brings 13 years of industry expertise with a strong focus on financial planning and market expansion.
• Other senior leaders, such as Abhinav Sacheti (Marketing), Kulmeet Saggu (COO), and an experienced Board with architects, chartered accountants, and IT professionals, contribute diverse expertise.

This blend of entrepreneurial drive and professional management has helped build Euro Pratik into a household name in organized decorative surfaces.

Industry Outlook

The decorative wall panel and laminate industry in India is growing fast, as rising urbanization and a booming housing market lift demand for stylish, durable interiors. The organized wall panel market is set to grow at a 19.3% CAGR to ₹4,130 crore till FY29, while the laminates sector expects a 13.4% CAGR to ₹2,282.6 crore. Rising disposable incomes, premium lifestyles, and the growth of commercial infrastructure (offices, malls, hotels) are further boosting demand. As one of the largest organized players with a 15.87% share, Euro Pratik is well-positioned to benefit from this shift from unorganized to branded players.

Who’s Making Money via the IPO OFS: Selling Shareholders

Euro Pratik Sales’ entire offer for sale is led by the promoter family. Collectively, they are looking to cash out over ₹450 crore through the IPO (100% of the IPO proceeds). The largest portions come from the HUF entities of Pratik and Jai Singhvi, each selling shares worth ₹156.66 crore, alongside Dipty Pratik Singhvi and Nisha Jai Singhvi, who are individually monetising about ₹40.93 crore each. Pratik and Jai Singhvi, in their individual capacities, are offloading smaller sums of ₹28.25 crore and ₹27.88 crore, respectively. While the disclosed multiples on investment run into extraordinary four-digit figures (above 4,000x in some cases), these should be viewed with caution. Since the sellers are promoters and part of the founding family, the “returns” are largely an accounting outcome of their low historical cost of capital rather than venture-style gains. In effect, the OFS here represents a partial profit-taking exercise by the promoters, unlocking wealth from their long-standing business, rather than typical investor exits seen in PE-backed IPOs.

Analyst View

Euro Pratik continues to present a mixed picture for investors. On one side, its business model is profitable, asset-light, and largely debt-free, supporting its identity as a "fast fashion for interiors" player. On the other, high working capital requirements, dependence on a limited supplier base, and the fact that the IPO is a full offer-for-sale mean no fresh funds will help operations. The final subscription data underscores this caution: QIBs showed subdued participation, retail demand was moderate, and NIIs drove the most traction, though short of a big rush. Valuation at 32.8x earnings appears fair compared to listed peers, but without strong listing buzz, quick gains look uncertain. For investors, Euro Pratik is more of a fundamentals-backed long-term play than a short-term opportunity.

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Disclaimer

Source: Euro Pratik Sales' RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.