Business Profile of Epack Prefab Technologies Limited
The upcoming IPO of EPAC PREFAB Technologies Ltd. operates in two businesses which are PreFab businesses where the company provides solutions on a turnkey basis which includes designing, installation, manufacturing, and erection pre-engineering, fabrication, and its components in the domestic market and abroad and has a capacity of 8400 MTPA. PreFab business has manufacturing facilities in Greater Noida, Ghiloth, and Mambattu. The other business includes the manufacturing of polystyrene sheets and blocks also known as “EPS Blocked Molded” products and “EPS Shape Molded” for uses in construction, packaging, and consumer goods in India. The company was established in 1999 and has been operating in the market for over 25 years.
IPO Objective of Epack Prefab Technologies
As per the draft red hearing prospects, the IPO issue consists of offer for sale and fresh issue. The OFS consists of up to o 10,000,000 Equity Shares and fresh issue of ₹3,000.00 million at the face value of ₨ 2 each aggregating up to XXXX. There is fresh issue & OFS of shares by company and main objective of company for listing is to financing capital expenditure related to setting up new manufacturing sites and expansion of existing sites. Along with it company repayment of borrowing and general corporate expense.
Issue Price & Size of Epack Prefab Technologies Limited IPO
The issue price of EPACK PREFAB TECHNOLOGIES LIMITED hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has an offer for sale of 10,000,000 and fresh issue aggregating up to ₹3,000.00 million equity shares at the price of ₨XXXX.
Launch Date of Epack Prefab Technologies IPO
The IPO opening date of EPACK PREFAB TECHNOLOGIES LIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Should You Subscribe Epack Prefab Technologies IPO?
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Epack Prefab Technologies
Strong and diverse market presence
The company has the position of third largest production capacity in the pre-engineered steel building industry and revenue registered 55.48% CAGR between 2022-24 years. EPACK PREFAB has a diversified market presence and portfolio of a comprehensive range of offerings. The company has expertise in cost-effective pre-engineered steel building solutions making a reliable brand in various sectors like infrastructure, industrial, and commercial building.
Strategically advantages
PREFAB Ltd. has location manufacturing facilities and in-house design & engineering strategic advantages along with side sales availability giving it an edge over its competitors in the market. These strategic advantages enable the Company to fulfill customer demand quickly and ensure a timely supply of products. It helps the company to provide location advantage & better flexibility, inventory management, and a unique way to meet the needs of customers.
Strong financial performance
In the previous six months (September 2024), 2023 and 2022 company experienced strong financial growth which was achieved due to continuing focus on operational efficiency and customer outreach. The company recorded 41.79% CAGR between fiscal 2022-2024 and a revenue CAGR 55.48% in 2022-24 increasing from ₨195 billion to ₨210 billion. Along with this company's ROE in 2024 is 29.12% and the ROCE is 28.16% in fiscal 2024..
Better customer relations
The company places emphasis on quality, cost efficiency, and timely project completion which help in building better relations with customers in the market. It is the key driver for enduring better partnerships and improving the performance of the company. In the previous year (Sept. 2024) and in the last three years 2022,2023 and 2024 company successfully delivered more than 1200 customers and over time company focused on building relationships with domestic and global clients..
Risk Factors of Epack Prefab Technologies
Undiversified revenue
The company's main revenue comes from its Pre-Fab business and any decrease in demand for this business will adversely affect the profit margin of the company. Pre-Fab business products have played a significant role in company growth and revenue in past years and too much dependency on one business segment can raise risk for business operations.