EPack Prefab Technologies IPO Details: Launch Date, Share Price, Size & Review

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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.

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 IPO

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.

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.

Problem in technological advancement

The company is not introducing new engineering processes and faces challenges in adapting to changing customer preferences in a timely and effective manner. In addition, if company services are outdated in technological advancement or development of alternative products the revenue and demand for products can decline. In such conditions, it will adversely affect business operations, cash flow, and financial performance.

Epack Prefab Technologies Limited Grey Market Premium

Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies’ stocks that start trading even before the launch of the IPO to the date of its listing.

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