Epack Prefab Technologies Limited, incorporated in 1999, is a prominent player in India’s pre-fabricated construction and packaging sectors. The company operates in two primary verticals: its Pre-Fab Business and EPS Packaging Business. The Pre-Fab division offers end-to-end solutions for pre-engineered steel buildings and prefabricated structures, including design, manufacturing, and installation. This business has shown strong growth, with a compounded annual growth rate (CAGR) of 55.48% in revenue between FY22 and FY24, significantly outpacing the overall pre-engineered steel building industry’s growth of 8.3% over the same period.

The second vertical, EPS Packaging, focuses on producing expanded polystyrene (EPS) sheets and blocks for various industries like construction, consumer goods, and packaging. The company leverages its three manufacturing facilities and three design centers across India to support its operations. With a legacy of over 25 years and strong financial metrics, including a high return on equity (ROE) and return on capital employed (ROCE), Epack Prefab has established itself as a leader in its evaluated peer group, demonstrating a robust track record of growth and profitability.

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• Market Leadership & Diversification: The Company has a strong and diverse market presence, offering comprehensive solutions in the expanding pre-engineered steel buildings industry.
• Operational Efficiency: Strategically located manufacturing facilities and in-house design capabilities provide a significant cost advantage.
• Strong Customer Relations: The Company has built long-standing relationships with a wide variety of customers across different industries.

Financial Strength: A combination of strong financial performance and a robust order book indicates a healthy business outlook.

The Company EPACK PREFAB TECHNOLOGIES LIMITED IPO proposes to utilise the Net Proceeds from the Issue towards the following objects:

• 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”) (₹ 102.97 Cr.)
• 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 (₹ 58.17 Cr.)
• Repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company (₹ 70 Cr.)
• General corporate purposes

At the upper band of IPO ₹ 204, the stock is valued at 34.54 P/E multiple. Hence, well-informed investors subscribe for medium to long term perspective.