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Euro Pratik Sales IPO Day 3: Check GMP, subscription status. Should you apply or not?


Here’s a full article analyzing Euro Pratik Sales IPO Day 3, the GMP (Grey Market Premium), subscription status, and whether it’s a good time to apply — along with some predictions about what to expect going forward.

Euro Pratik Sales IPO: Key Facts

  • IPO size: ₹451.31 crore — entirely an Offer for Sale (OFS) by promoters/promoter‑group. (Share India IPO)

  • Price band: ₹235‑₹247 per share. (mint)

  • Lot size: 60 shares minimum. (Share India IPO)

  • Timeline:

    • Subscription open: 16‑18 September 2025. (Moneycontrol)

    • Allotment expected: 19 September. (mint)

    • Listing date on NSE & BSE: 23 September. (mint)

Subscription Status & GMP as on Day 3

  • On Day 1, the IPO saw ~43% subscription overall; retail portion ~33%, Non‑Institutional Investors (NIIs) ~89%, QIBs ~26%. GMP was zero (meaning no premium) on Day 1. (mint)

  • On Day 2, subscription improved to ~70%. NIIs and retail picked up more interest, but QIBs remained less aggressive. GMP jumped to ~2.5%. (The Economic Times)

  • On Day 3 (final day of bidding), subscription stood at ~78% overall. However, the GMP sharply declined to about 0.4%, signaling softening sentiment. (The Economic Times)

What the Analysts Say & Fundamentals

  • Euro Pratik operates in the decorative wall panels and laminates sector, using an asset‑light model: it outsources much of manufacturing to contract partners in South Korea, China, the U.S. (mint)

  • As of FY 2025, revenue grew ~28%, and net profit ~21% year‑on‑year. Profitability metrics like EBITDA margin, ROE, return ratios are strong relative to many peers. (Moneycontrol)

  • Valuation: at the upper end of price band (~₹247), the P/E is around ~32‑33× on post‑issue basis. Some brokerages believe it is fair given growth prospects, product portfolio, and market position. (Business Standard)

Risks to Watch

From the RHP and market commentary, here are some of the risks:

  1. Dependency on contract/manufacturers outside India → foreign exchange risk, supply chain disruption risk. (mint)

  2. Real estate market exposure → since decorative panels/laminates are closely tied to residential/commercial construction activity. Natural ups & downs in real estate could affect demand. (mint)

  3. Brand name issues → The company does not own the “Euro Pratik” brand name. That opens risk in case of ownership/usage/dispute or inability to leverage the brand fully. (mint)

  4. Negative operating cash flows in FY25. Even if profits are up, negative cash flow from operations could be a red flag if sustained. (mint)

Should You Apply? (Prediction & Advice)

Based on what we know as of Day 3:

  • If you are a long‑term investor, this IPO has decent promise. Strong margins, good growth in recent years, and being in a segment (decorative wall panels & laminates) with rising demand (both in residential and commercial sectors) are positives. Analysts like SBI Securities are recommending a “Subscribe” rating for long‑term holding. (Business Standard)

  • If you are seeking quick listing gains, the signs are mixed.

    • The GMP fell significantly on Day 3 → this suggests that grey market expectations for listing premium have cooled. (The Economic Times)

    • Subscriptions haven’t been overwhelming; still below full subscription on final day, meaning demand is moderate. That reduces the probable “pop” on listing.

  • Valuation seems a bit steep. 32‑33× P/E is high; for fast gains this can mean risk, unless growth continues fast.

  • Given the risks—“brand ownership”, reliance on external suppliers, real‑estate cyclicality, and cash flow issues—there is non‑trivial downside if market conditions worsen or if expectations get too aggressive.

Future Prediction

Here are some educated guesses for what might happen:

  • Listing price will likely be near the upper bound of the price band (≈ ₹247), but not much higher. GMP being 0.4% suggests maybe ₹248‑₹250 on listing if market sentiment holds up.

  • Initial listing gains will probably be modest — perhaps in the 3‑7% range, rather than a huge pop, unless there’s unexpected last‑minute enthusiasm (which seems unlikely given soft GMP).

  • Medium‑term (6‑12 months), the company has good potential if decorative panels & laminates remain in demand, raw material/supply chain issues are managed, and real estate demand holds up. It could deliver good returns if one believes in its revenue growth and margin stability.

Verdict: Apply or Not?

  • Yes, if you are okay with moderate risk, looking beyond short‑term listing gains, and believe in the long‑term trend. The fundamentals support a “subscribe” for long‑term investors.

  • No (or caution), if you're looking for quick profit, worried about volatility or macro headwinds (e.g. real estate, raw materials, currency), or sensitive to valuation.

If you like, I can run a comparison with similar recent IPOs in the decoratives/architectural interiors space to see whether Euro Pratik stacks up better or worse, and whether the risk‑reward is favorable. Do you want me to do that?

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Location: India

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