EURO PRATIK SALES IPO

Key Details at a Glance

Euro Pratik Sales Limited is set to launch its Initial Public Offering (IPO), providing investors an opportunity to participate in one of India’s prominent players in the decorative wall panels and laminates market. The IPO, with a total issue size of ₹451.31 crores, is entirely an Offer for Sale (OFS), reflecting a strategic move by existing shareholders. The price band has been fixed between ₹235 and ₹247 per equity share, with a market lot size of 60 shares, translating to a minimum investment of ₹14,820 for retail investors. This public offering is poised to be a significant event in the Indian primary market, drawing attention from various investor categories.

Important Dates for Investors

Prospective investors should mark the following key dates for the Euro Pratik Sales IPO to ensure timely participation and tracking of their application status:

• Opening Date: 16 Sep 2025
• Closing Date: 18 Sep 2025
• UPI Payment Deadline: 18 Sep 2025 (5 PM)
• Allotment Announcement: 19 Sep 2025
• Refund Processing: 22 Sep 2025
• Demat Credit: 22 Sep 2025
• Stock Market Listing: 23 Sep 2025
• Mandate Validity End: 03 Oct 2025
• Anchor Investor Lock-in Release (50%): 19 Oct 2025
• Anchor Investor Lock-in Release (Remaining): 18 Dec 2025

*Dates may be revised as per official updates and market regulator notifications. Investors are advised to refer to the official RHP and exchange announcements for the most precise information.

About Euro Pratik Sales Limited

Euro Pratik Sales is a distinguished entity in India’s rapidly expanding decorative wall panels and laminates market. As a key player, the company is renowned for its expansive product portfolio and robust nationwide distribution network. Specializing in decorative surfacing materials, Euro Pratik Sales caters to a diverse clientele, including architects, interior designers, and individual homeowners, offering solutions that blend aesthetic appeal with functional durability.

The company operates on an asset-light model, a strategic approach that involves outsourcing its production to global manufacturers. This allows Euro Pratik Sales to primarily focus on its core strengths: design quality, product innovation, and market development, rather than investing heavily in manufacturing infrastructure. Maintaining stringent quality control and collaborating with experienced production partners, the company ensures its offerings meet international standards while remaining competitive in the Indian market. This operational strategy is complemented by a strong management team, bringing significant industry experience and expertise to drive the company’s growth trajectory and market leadership.

Public Issue Structure

The Euro Pratik Sales IPO comprises a total issue size of ₹451.31 crores. It is important for potential investors to note that this entire issue is an Offer for Sale (OFS) by existing shareholders. This means that the company itself will not directly receive any proceeds from this IPO. Instead, the funds generated from the sale of shares will go to the selling shareholders, who are divesting a portion of their holdings. While the company does not directly benefit from the infusion of capital through an OFS, it facilitates liquidity for existing investors and can broaden the public shareholding, potentially enhancing stock visibility and market depth post-listing.

Purpose of the Offer for Sale

As the Euro Pratik Sales IPO is structured entirely as an Offer for Sale (OFS), the proceeds from the public issue will not directly accrue to the company’s balance sheet for its operational use or future expansion plans. Instead, these funds will be received by the selling shareholders who are offloading a part of their stake in the company. This move provides liquidity to the existing investors and allows them to realize value from their investment. For the company, an OFS often serves to meet regulatory requirements for minimum public shareholding, increase public visibility, and potentially pave the way for future fundraising if needed. The overall impact on the company’s financials will be primarily through changes in shareholding patterns rather than direct capital injection for specific projects.

Distinctive Business Advantages

Euro Pratik Sales has cultivated several key competitive strengths that position it favorably in the decorative surfacing industry:

• Leading Brand Presence: The company commands a significant 15.87% market share in India’s decorative wall panels and laminates sector. This strong market position translates into high brand recognition, customer trust, and robust pricing power, enabling a competitive edge and attracting a loyal customer base.
• Comprehensive Product Portfolio: With an impressive offering of over 3,000 design variations across its product categories, Euro Pratik Sales provides extensive choices to its customers. This vast selection caters to diverse aesthetic preferences and functional requirements, from residential to commercial applications, broadening its market appeal.
• Asset-Light Business Model: By strategically focusing on design, marketing, and distribution while outsourcing manufacturing to global partners, the company operates with an asset-light model. This approach minimizes capital expenditure, enhances operational flexibility, reduces fixed costs, and allows greater agility in responding to market trends without significant investment in production facilities.
• Extensive Distribution Network: Euro Pratik Sales boasts a widespread distribution network comprising 172 distributors across India. This extensive reach ensures efficient product delivery to various markets, strengthens its presence even in remote regions, and enables effective penetration into a competitive and fragmented market.
• Strong Financial Growth: The company has demonstrated robust financial performance, characterized by increasing revenue and profitability. This consistent growth underscores the effectiveness of its business strategies, operational efficiency, and its ability to capitalize on market opportunities, making it an attractive proposition for investors seeking financial stability and expansion.

Key Considerations for Investment

While Euro Pratik Sales exhibits promising strengths, potential investors should also be aware of certain risk factors inherent to its operations and the industry:

• Dependency on Third-Party Logistics: The reliance on third-party logistics providers for supply chain management introduces a degree of risk. Any disruptions, inefficiencies, or failures by these external partners could adversely affect product delivery, increase costs, and potentially impact customer satisfaction and sales.
• Cash Flow Impact from High Trade Receivables: An increase in trade receivables, often associated with extended credit periods offered to distributors or customers, can tie up significant working capital. This can negatively impact the company’s cash flow, necessitating additional financing or affecting its ability to fund operations or expansion from internal accruals.
• Vulnerability to Real Estate Market Fluctuations: The demand for decorative wall panels and laminates is closely linked to the health of the real estate and construction sectors. A slowdown in these markets, influenced by economic downturns, policy changes, or rising interest rates, could directly reduce demand for Euro Pratik Sales’ products, affecting its revenue and profitability.
• Inventory Management Risks: Inaccurate forecasting or inefficient management of a large and diverse inventory (3,000 design offerings) can lead to significant financial strains. Overstocking could result in increased carrying costs, obsolescence, and markdown losses; understocking could lead to missed sales opportunities and customer dissatisfaction.
• Challenges in Protecting Technical Know-How: In an industry driven by design and innovation, the inability to adequately protect its technical know-how, designs, and intellectual property could risk its competitive edge. Competitors might replicate successful designs, eroding market share and profitability if protective measures are not in place or are ineffective.

Investor Demand and Subscription Trends

The Euro Pratik Sales IPO has seen varied levels of interest from different investor categories. The subscription data, as of the closing date, provides insights into investor confidence and demand for the shares:

The IPO witnessed an overall subscription of 1.41 times, indicating moderate demand. The employee portion received the highest interest, subscribed over 4 times, underscoring internal confidence. Non-Institutional Investors (NIIs) also showed robust participation, subscribing more than 2 times their allotted quota. Retail Individual Investors (RIIs) subscribed 1.31 times, while Qualified Institutional Buyers (QIBs) saw a subscription of 1.10 times. These figures represent the actual demand observed during the subscription period.

*Subscription statistics are based on official exchange data, which are considered the most reliable indicators of investor interest. Grey Market Premium (GMP) figures are unofficial and may vary; investors should exercise caution and rely on official sources for investment decisions.

Participating in the IPO

For investors considering participation in the Euro Pratik Sales IPO, the process is streamlined and accessible. Interested individuals and entities can submit their applications before the subscription window officially closes. It is crucial to complete the application process within the specified timelines to ensure eligibility for share allotment.

Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes. We encourage all prospective investors to conduct their due diligence by reviewing the Red Herring Prospectus (RHP) and consulting with a financial advisor to make informed investment decisions tailored to their financial goals and risk appetite.