EPack Prefab Technologies Files DRHP for IPO

EPack Prefab Technologies, a leading provider of pre-engineered building (PEB) solutions, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). The IPO includes a fresh issue of ₹300 crore and an offer-for-sale (OFS) of 1 crore shares by promoters.

Fundraising Plans and Utilisation

The company has proposed raising ₹60 crore through a pre-IPO placement, which would proportionally reduce the fresh issue size. From the fresh issue proceeds, ₹101.62 crore will be allocated for setting up a new manufacturing facility at Ghiloth Industrial Area, Alwar (Rajasthan). Additionally, ₹58.10 crore will be used to expand the existing manufacturing facility in Mambattu (Andhra Pradesh) to boost pre-engineered steel building capacity. Another ₹70 crore is earmarked for debt repayment, with the remaining amount directed towards general corporate purposes.

Performance and Business Overview

Incorporated in 1999, EPack Prefab Technologies designs fabricates, and installs pre-engineered building solutions for commercial, industrial, and institutional sectors. The company operates three manufacturing facilities in Greater Noida (Uttar Pradesh), Ghiloth (Rajasthan), and Mambattu (Andhra Pradesh), alongside three design centres located in Noida, Hyderabad, and Visakhapatnam.

As of September 2024, the company’s pre-fab business reported a net order book of ₹658.54 crore and a pending order book of ₹655 crore. EPack Prefab recorded a significant revenue growth of 38%, reaching ₹905 crore in FY24 compared to ₹657 crore in FY23. Profits also increased from ₹24 crore in FY23 to ₹43 crore in FY24.

Conclusion

EPack Prefab Technologies IPO reflects its strategic focus on expanding its manufacturing capabilities and enhancing its financial position. With significant revenue and profit growth, the company is poised to strengthen its market presence in the PEB solutions sector.

The funds will primarily be used for expansion, debt repayment, and general corporate purposes.

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