Euro Pratik eyes ₹700-₹1,000 crore IPO; plans to file draft papers by December

Euro Pratik, a prominent player in the decorative wall panel industry, is set to file draft papers with the market regulator SEBI for an initial public offering (IPO) worth ₹700-₹1,000 crore, sources familiar with the matter said on Thursday.

The IPO, expected to be filed by the end of the month, is likely to value the company at an estimated ₹5,000-₹6,000 crore, they said.

The public issue is anticipated to be a complete Offer-for-Sale (OFS), they said, adding that Axis Capital and Dam Capital have been appointed as merchant bankers.

As of the time of filing this story, an email sent to the company seeking confirmation remained unanswered.

Euro Pratik is a well recognised brand in India and is now expanding its presence in international markets. The capital market foray is a pivotal moment for the company, which seeks to leverage its early-mover advantage post listing, said a person tracking the home decor segment.

Over the past four years, the fast growing and fast fashion company which operates under two brands -- Euro Pratik and Glorio -- has established itself as a category leader in decorative wall panels and premium laminates.

The company holds about 25% market share in the segment and has a diversified product portfolio of over 3,000 SKUs across 30 product ranges that it sells across 170 distributors present across the country.

Since 2019, the Euro Pratik has been associated with Bollywood actor Hrithik Roshan, who serves as its brand ambassador.

The company has pan-India presence through its exclusive distributors and caters to architects, interior designers, and consumers through its distribution network. It challenges the traditional wall paint industry which has established players like Asian Paints, Berger India, Kansai Nerolac, Indigo Paints.

It has an asset-light business model and has contract manufacturers who are associated with the company for a long time. The company drives innovation via its new designs which have been pivotal to its success.

Over 70% of its revenues come from the wall panels segment and rest from designer and premium laminates besides interior films, adhesives and other products.

As per MCA records, the company's EBITDA or operating profit has seen a considerable growth from ₹58 crore in FY22 to ₹67 crore in FY23 and ₹69 crore in FY24.

Also, profit after tax has jumped from ₹44 crore in FY22 to ₹63 crore in FY24. It has a strong balance sheet with low leverage levels and a positive cash flow and almost no net debt.