The initial public offering (IPO) of EPW India is set to open for subscription on Monday, with the grey market premium indicating a flat listing despite strong recent financial growth. This development is crucial for investors looking to subscribe to the issue.
About the IPO
The NSE SME-bound issue is a book-built offering of Rs 31.81 crore and is entirely a fresh issue of 32.8 lakh shares. The IPO is priced in a band of Rs 95 to Rs 97 per share, valuing the company at a pre-IPO market cap of about Rs 111 crore.
Investor Details
Retail investors need to apply for a minimum of 2,400 shares, translating into an investment of Rs 2.33 lakh at the upper end of the price band. For non-institutional investors, the minimum application size is 3,600 shares, amounting to Rs 3.49 lakh.
Issue Structure and Financials
The issue structure allocates about 47% to qualified institutional buyers, 14% to non-institutional investors and around 33% to retail investors. The company has already raised Rs 9.04 crore from anchor investors ahead of the issue. EPW India operates in the refurbished IT electronics space and reported sharp growth in FY25, with revenue rising 188% and profit after tax increasing nearly five-fold year-on-year.
Usage of IPO Proceeds
The proceeds from the IPO will be used primarily to fund working capital requirements, repay certain borrowings and for general corporate purposes. With the grey market pointing to a flat debut, investor focus is likely to remain on subscription trends over the next two days and the company’s ability to sustain recent growth after listing.
Remember, this is perspective, not prediction. Do your own research before making any investment decisions.