Epack Prefab Technologies IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The company incorporated in the year 1999 and have a legacy of over 25 years, operating into two business verticals, i.e. (i) Pre-Fab Business, wherein it provide 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 our Pre-Fab Business, it 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. As on March 31, 2025, its total installed capacity at its three manufacturing facilities situated at Greater Noida (Uttar Pradesh), Ghiloth (Rajasthan) and Mambattu (Andhra Pradesh) is 1,26,546 MTPA of pre-engineered capacity and 5,10,000 SQM of Sandwich Insulated Panel capacity. In addition to its manufacturing facilities, it also have three design centres.

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 has a capacity of 8,400 MTPA. Its EPS Packaging Business products are known for its lightweight, insulating properties, impact resistance, making them ideal for various industries such as construction, packaging, and consumer durables.

IPO Details:

Objectives of Issue:

• 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
• 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 Purpose

Key Strengths:

• Diverse Product Portfolio & Turnkey Capabilities- EPACK Prefab’s strength lies in its ability to offer a comprehensive range of prefabricated solutions, including pre-engineered steel buildings (PEBs), prefabricated modular structures, sandwich insulated panels, light gauge steel frames (LGSF), and expanded polystyrene (EPS) packaging. By covering the full value chain – from design, engineering, and manufacturing to transportation and on-site installation – the company has positioned itself as a one-stop turnkey solution provider. This capability not only reduces project execution time for customers but also ensures quality control and operational efficiency. Furthermore, the diversified product mix enables the company to serve multiple industries such as infrastructure, logistics, industrial manufacturing, and consumer durables.
• Revenue Diversification- The company has strategically reduced dependence on its top customers, thereby mitigating client concentration risk. In the Prefab business, revenue contribution from the top 10 customers has declined significantly from 52% in FY 2023 to 25% in FY 2025. A similar trend is visible in the EPS packaging segment, where reliance on top customers has reduced from 80% in FY 2023 to 71% in FY 2025. This demonstrates effective customer diversification and reflects management’s focus on broadening its client base across industries and geographies. Such diversification ensures business sustainability, lowers vulnerability to demand fluctuations from a few large accounts, and improves bargaining power.
• High Repetition from Customers – EPACK Prefab enjoys strong repeat business, a testament to the quality, cost competitiveness, and timely execution of its projects. Over FY 2023–2025, the company has successfully catered to more than 2,020 customers in its Prefab business, with repeat order revenue contribution rising from 40% in FY 2023 to 43% in FY 2025. This indicates increasing customer trust and loyalty towards its offerings. Repeat orders reduce the cost of customer acquisition, ensure stable cash flows, and reflect deep-rooted relationships with large corporate and institutional buyers. Moreover, high customer retention underscores the company’s ability to consistently deliver value, thereby creating entry barriers for competitors. Such customer stickiness provides EPACK Prefab with predictable business volumes, scope for premium pricing in select projects, and long-term growth visibility, all of which are vital strengths in a competitive industry like prefabricated construction.

Risks:

• High Dependency on Pre fab Business- Despite its diversified product portfolio, EPACK Prefab derives more than 84% of its revenues from the Prefab business segment. This high reliance on a single vertical exposes the company to sector-specific risks. Any downturn in the demand for prefabricated buildings due to economic slowdown, policy changes, or a shift in customer preference towards conventional construction methods could materially affect financial performance. Additionally, factors such as delay in infrastructure projects, rising input costs, or adverse regulatory interventions could reduce the cost-benefit appeal of prefab solutions, thereby impacting volumes.
• Competition from Traditional Construction & Unorganised Segment – While prefabricated construction is gaining traction in India, it continues to face stiff competition from conventional reinforced cement concrete (RCC) methods, which are deeply entrenched and widely preferred. Low awareness of prefab benefits, reluctance to shift from traditional methods, and customer perception of higher upfront costs slow down adoption. Moreover, the large unorganised sector, comprising small and regional players, intensifies price-based competition. These unorganised operators often offer lower-cost alternatives, which exerts pressure on margins for established companies like EPACK Prefab
• Regulatory & Environmental Exposure – The company is subject to various environmental and regulatory compliances. For instance, proceedings initiated by the Uttar Pradesh Pollution Control Board under the Air Act pose a potential risk to its EPS packaging business. Any adverse ruling in such cases may lead to penalties, restrictions, or operational disruptions. Beyond this, the construction and prefab sector is inherently exposed to changes in environmental norms, labor laws, and industrial safety regulations. Stricter environmental standards could increase compliance costs, while delays in regulatory approvals might impact project timelines. Additionally, non-compliance, whether actual or perceived, could harm the company’s reputation, weaken customer trust, and affect its ability to bid for large contracts. Hence, regulatory and environmental exposure remains a key operational and reputational risk for EPACK Prefab.

Financial Snapshot:

KPI comparison with Industry Peers

Conclusion

The pre-engineered buildings (PEB) segment is witnessing strong growth, driven by its cost-effectiveness, faster turnaround time, and positive environmental impact. From a financial perspective, the company’s revenue growth has outpaced that of its industry peers, reflecting its superior execution capabilities. Its EBITDA and PAT margins are higher than the industry average, and return ratios such as ROCE and ROE are also stronger compared to peers, showcasing operational efficiency and effective capital utilization. On the balance sheet side, the company maintains a net debt-to-equity ratio below 1, though relatively higher than the industry, while its interest coverage ratio is comparatively lower but still at a comfortable level. Fixed asset turnover is broadly in line with the industry benchmark. In terms of valuation, while the sector trades at around 23x P/E, the company is valued at 26x, which appears reasonable considering its performance. Supported by bright industry prospects, sound financials, and fair valuations, the stock offers long-term investment potential.