Epack Prefab Technologies
- Epack Prefab Technologies is coming out with a 100% book building; initial public offering (IPO) of 2,54,63,917 shares of 2 each in a price band Rs 194-204 per equity share.
- Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
- The issue will open for subscription on September 24, 2025 and will close on September 26, 2025.
- The shares will be listed on BSE as well as NSE.
- The face value of the share is Rs 2 and is priced 97.00 times of its face value on the lower side and 102.00 times on the higher side.
- Book running lead managers to the issue are Monarch Networth Capital and Motilal Oswal Investment Advisors.
- Compliance Officer for the issue is Nikita Singh.
Profile of the company
The company was incorporated in the year 1999 and has a legacy of over 25 years, operating into two business verticals, i.e. (i) Pre-Fab Business, wherein it provides complete solutions to customers on turnkey basis which includes designing, manufacturing, installation and erection of pre-engineered steel buildings, pre-fabricated structures and its components in India and overseas (Pre-Fab Business); and (ii) manufacturing of expanded polystyrene sheets and blocks (also referred as “EPS Block Molded” products and “EPS Shape Molded” products) for various industries such as construction, packaging, and consumer goods in India (EPS Packaging Business).
As a part of its Pre-Fab Business, the company offers pre-engineered steel buildings, pre-fabricated modular building structures, light gauge steel frames (LGSF), Sandwich Insulated Panels and other standard modular solutions to its customers. It also undertakes projects on turnkey basis, wherein it provides complete pre-fabricated structures that involves estimation, designing, engineering, manufacturing, transportation, installation and erection of pre-fabricated structures at the site of the customer.
In its EPS Packaging Business, it provides a variety of EPS Shape Molded and EPS Block Molded products, including EPS Sheets, packaging boxes for electronic goods, and hand-molded packaging box. As on March 31, 2025, it had a capacity of 8,400 MTPA. These are tailored to meet the specific packaging needs of its customers. The company’s EPS Packaging Business products are known for their lightweight, insulating properties, impact resistance, making them ideal for various industries such as construction, packaging, and consumer durables. It sells its Pre-Fab Business products under the brand name ‘EPACK PREFAB’ and EPS Packaging Business products under the brand name ‘EPACK PACKAGING’.
Proceed is being used for:
- Financing the capital expenditure requirements for setting up new manufacturing facility at Ghiloth Industrial Area, Shahjahanpur, Alwar in Rajasthan for manufacturing of continuous Sandwich Insulated Panels and pre-engineered steel building (Project)
- Financing the capital expenditure towards expansion of existing manufacturing facility at Mambattu (Unit 4) in Andhra Pradesh for increasing the pre-engineered steel building capacity
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by the company
- General corporate purposes
Industry Overview
Construction GVA is a critical indicator of economic activity since it represents the value generated by the construction sector, which includes activities related to building infrastructure, real estate and other construction projects. In India, construction GVA increased to Rs 15.7 trillion in fiscal 2025PE from Rs 7.8 trillion in fiscal 2012, which was 5.6% CAGR. Several factors contributed to the growth, including economic expansion, the government's commitment to infrastructure development, particularly roads, railways and energy projects, and increase in foreign direct investment, which boosted private sector investment. Furthermore, increasing demand for affordable housing, driven by rising urbanisation and an expanding middle-class population, has also played a significant role in elevating construction GVA.
Prefabricated structures, commonly referred to as prefab buildings, involves the use of pre-manufactured elements in the overall construction. These elements are designed in a controlled factory environment, ensuring high quality and precision, before being transported to the construction site where they are assembled to form a complete and functional structure. This unconventional method of building is gaining acceptance due to its numerous benefits and versatility across various sectors. The process of prefabrication begins with the design and engineering of individual components, which can include walls, floors, roofs, and even entire modules. These components are produced in a factory setting, where conditions can be optimized for efficiency and quality control, which in turn minimizes the chance of delays due to external reasons. Once all the components/ module/ structure are ready, it is shipped to the designated site, where skilled workers assemble it into the final structure.
Pre-engineered steel construction is a sub segment of the overall prefabricated building and has emerged as an innovative building method due to rapid growth of automation in the construction industry. However, whereas prefabricated construction can be built through different raw materials like concrete, metal, etc, steel preengineered buildings have steel as its major raw material component. Furthermore, these PEB structures are fabricated in the factories in a controlled environment and then transported to the construction site where the final assembly takes place, whereas prefabricated buildings can in knockdown, semi- knockdown or as completely built in units. The Pre-Engineered Buildings (PEB) industry expanded at a CAGR of 8.3% over fiscals 2019 and 2025, growing from Rs 130 billion in 2019 to Rs 210 billion in fiscal 2025, driven by increased construction investments and growing awareness of PEB and its advantages. Going forward, the medium-term outlook is optimistic, with the industry expected to clock a CAGR of 9.5-10.5% between fiscals 2025 and 2030 to Rs 330-345 billion, supported by investments in the industrial and infrastructure sectors, such as warehouses and logistics as well as expressways (wayside amenities and toll plazas).
Pros and strengths
Strong and diverse market presence: The company has a diversified market presence and an extensive portfolio of comprehensive offerings. Its expertise in delivering high-quality, cost-effective pre-engineered steel buildings solutions, has positioned it as a trusted partner across various sectors, including industrial, infrastructure, and commercial buildings. It has supplied its Pre-Fab Business products and executed the projects across 30 States and Union Territories. This regional and end-use industry diversification allows it to minimize dependency on any single industry, ensuring stability and resilience against fluctuations in both industry demand and geographic conditions.
Strategically located manufacturing facilities: The company has three manufacturing facilities located at Greater Noida (Uttar Pradesh), Ghiloth, (Rajasthan) and Mambattu (Andhra Pradesh) for the manufacturing of Pre-Fab Business products and one manufacturing facility at Greater Noida (Uttar Pradesh) in respect of its EPS Packaging Business products. The company’s Unit 2 of Pre-Fab Business and Unit 1 of EPS Packaging Business are strategically located to cater to the customers in Northern, Eastern and Central India, its Unit 3 is strategically located to cater to the customers in the Northern and certain parts of Western India and its Unit 4 is strategically located to cater to the customers in the Southern and certain parts of Western India. Its manufacturing facilities are located in close proximity to its customers and are well placed to cater to the requirements of potential customers across India.
Long-standing relationships with customers across a diverse set of industries: The company has built relationships with many of its customers, including various customer groups, which it attributes to its strong focus on quality, cost efficiency, and timely project execution. These enduring partnerships have been a key driver of its performance. In the last three Fiscals 2025, 2024 and 2023, it has successfully catered to more than 2,020 customers for Pre-Fab Business. Over the course of its business operations, it has built relationships with several Indian and global customers. It attributes its continued growth and expanding market share to the strength of these customer relationships and plan to leverage them for sustained future growth.
Strong financial performance and Order Book: The company has experienced strong financial performance during Fiscals 2025, 2024, and 2023, which it attributes in part to its continuing focus on operational efficiency, customer outreach and other sales and market initiatives, improvement in capacity utilization, growth of its Order Book and increased presence across India, and resultant economies of scale. Among the peers evaluated, it is the fastest growing in terms of revenue from operations. Such demonstrated growth in its financial performance in recent years positions it for future growth and further diversification of its customer base and offerings. Its strong balance sheet enables it to fund its strategic initiatives, pursue opportunities for growth, and better manage unanticipated cash flow variations. Its financial condition is also determinant of its access to performance guarantees, which are critical to its business in the ordinary course.
Risks and concerns
Maximum revenue comes from limited clients: In respect of its EPS Packaging Business, the company is dependent on ten customers, and amongst them are also its Group Companies i.e; East India Technologies Private Limited and EPACK Durable Limited. The company has garnered 70.97%, 76.01% and 80.13% of its total revenue from top 10 customers in FY25, FY24 and FY23 respectively. Loss of any major customer may impact revenue from its EPS Packaging Business.
Geographical constrain: The company’s business operations are geographically concentrated in the North and central, and West regions. The company has garnered 32.88%, 44.69% and 33.58% of its total revenue from North and Central region in FY25, FY24 and FY23 respectively. Moreover, the company has garnered 31.95%, 30.90% and 23.57% of its total revenue from West region in FY25, FY24 and FY23 respectively. Any adverse impact in these regions may adversely affect the business, results of operations and financial condition of the company.
Significant portion of its revenue comes from Pre-Fab Business vertical: The company has derived a significant portion of its revenues from its Pre-Fab Business segment. The company has garnered 84.07%, 81.54% and 72.40% of its total revenue from Pre-Fab Business. In the event of a decrease in the demand for pre-fabricated buildings or any external development that makes the demand of pre-fabricated buildings less economically beneficial for its customers, its business may be adversely affected.
High working capital requirement: The company has ongoing working capital requirements to maintain adequate levels of raw materials, stores, inventories of finished goods, accounts receivable, and other current assets necessary for its business operations. There is a risk that it may be unable to provide sufficient collateral to secure letters of credit, bank guarantees, or performance bonds, which could restrict its ability to enter into new contracts. The need to provide security for such instruments further increases its working capital requirements and may limit its ability to repatriate funds to meet contractual obligations or distribute dividends. While the company has arrangements with lenders to address its working capital needs, these arrangements may prove insufficient to meet future requirements, particularly in light of its planned expansion. Any shortfall in meeting these requirements could adversely affect its business operations and financial flexibility.
Outlook
Epack Prefab Technologies engaged in turnkey pre-engineered steel buildings and prefabricated structures, handling design, fabrication, installation for industrial, institutional, and commercial sectors. The company has well-located manufacturing facilities and strong in-house design and engineering capabilities give it a significant cost advantage. On the concern side, the company is dependent on top ten customer in respect of its EPS Packaging Business. Loss of any major customer may impact revenue from its EPS Packaging Business. Moreover, the company’s business operations are geographically concentrated in the North and central, and West regions. Any adverse impact in these regions may adversely affect the business, results of operations and financial condition of the company.
The issue has been offering 2,54,63,917 shares in a price band of Rs 194-204 per equity share. The aggregate size of the offer is around Rs 494.00 crore to Rs 519.46 crore based on lower and upper price band respectively. Minimum application is to be made for 73 shares and in multiples thereon, thereafter. On performance front, the company’s revenue from operations increased by Rs 2,290.15 million i.e. 25.31% to Rs 11,339.17 million in Fiscal 2025 from Rs 9,049.02 million in Fiscal 2024. This increase was primarily driven by an increase in sales in the Pre-Fab Business. Moreover, the company recorded a profit for the year of Rs 593.22 million in Fiscal 2025 compared to profit for the year of Rs 429.59 million in Fiscal 2024.
The company plans to set up new manufacturing facility at Ghiloth (Rajasthan), which would add capacity of 800,000 SQM for manufacturing continuous Sandwich Insulated Panel, which will enable it to capture more market share by providing long-span prefab buildings and newer end-use industries like cold storages and clean rooms. The new capacity addition at Ghiloth (Rajasthan) would help the company to growing demand of pre-engineered steel buildings in Northern India and certain portions of Western India. Expansion at Unit 4 at Mambattu (Andhra Pradesh) will add an additional capacity of 24,000 MTPA built-up and other pre-engineered capacity helping the company to tap market opportunities in Southern and some parts of Western India. Additionally, proximity to ports from Mambattu (Andhra Pradesh), will enable the company to tap the growing demand of pre-engineered steel buildings in international markets.
