Eurobond SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 14 Dec 2021 – 16 Dec 2021
- Listing date
- 24 Dec 2021
- Face value
- ₹10 per share
- Issue price
- ₹70 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹45.50 Cr
- Market cap at offer price
- ₹172 Cr
- Promoter holding
- 82.50% → 60.61% pre-issue → post-issue
- ISIN
- INE505V01016
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- 702, 7th Floor, Aravalli Business Centre, Ramdas Sutrale Road, Borivali (West), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 3,28,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹70
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 16,000 | ₹11,20,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹172 Cr |
About Eurobond SME
Euro Panel Products Limited, originally incorporated as Archer Trading House Private Limited in December 2013 and later renamed, is an ISO 9001:2015 certified manufacturer of Aluminum Composite Panels (ACPs). The company operates a manufacturing facility at Umbergaon, Gujarat, with its head office in Mumbai, Maharashtra. ACPs are flat panels crafted from two aluminum alloy sheets bonded with a non-aluminum core, widely used as exterior cladding or facade material for commercial buildings and corporate houses due to their durability and ease of maintenance in various climates. The company derives revenue from both domestic sales and exports to countries including Uganda and the United States. The company was converted to a public limited company in August 2021, with Rajesh Shah and Divyam Shah as promoters.
Company Analysis
from RHPEuro Panel Products Limited manufactures Aluminum Composite Panels (ACPs) for use in infrastructure, construction, and real estate sectors.
Euro Panel Products Limited, originally incorporated as Archer Trading House Private Limited in December 2013 and later renamed, is an ISO 9001:2015 certified manufacturer of Aluminum Composite Panels (ACPs). The company operates a manufacturing facility at Umbergaon, Gujarat, with its head office in Mumbai, Maharashtra. ACPs are flat panels crafted from two aluminum alloy sheets bonded with a non-aluminum core, widely used as exterior cladding or facade material for commercial buildings and corporate houses due to their durability and ease of maintenance in various climates. The company derives revenue from both domestic sales and exports to countries including Uganda and the United States. The company was converted to a public limited company in August 2021, with Rajesh Shah and Divyam Shah as promoters.
Objects of the Issue
- Working Capital Requirement ₹2,233.70 lakhs p.20
- Repayment of Unsecured loans ₹904.36 lakhs p.20
- General corporate purposes ₹1,128.75 lakhs p.20
- Meeting incremental working capital requirements ₹2,233.70 lakhs p.79
- Repayment of unsecured loan availed by our company ₹904.36 lakhs p.79
- General corporate purposes ₹1,128.75 lakhs p.79
Issue Structure
- Total Issue
- ₹4,515.00 lakhs
- Fresh Issue
- 65,00,000 Equity Shares
- Price Band
- ₹70.00 per Equity Share
- Lot Size
- 2,000 Equity Shares
- Face Value
- ₹10.00 per Equity Share
Business Model
The company manufactures and sells Aluminum Composite Panels (ACPs) to customers through a distribution network of dealers and distributors across India. As of the prospectus date, the company has more than 79 distributors and 67 dealers. Revenue is generated from sales of ACPs to the real estate, infrastructure, and related sectors. The company does not rely on long-term agreements with customers but instead operates on a spot order basis with purchase orders.
Business Segments
SWOT Analysis
- • ISO 9001:2015 certification demonstrates manufacturing quality standards(p.19)
- • Established distribution network with 79 distributors and 67 dealers across India(p.26)
- • Recognized brand 'Eurobond' in the ACP market(p.38)
- • Brand image and market positioning(p.106)
- • Experienced and collaborative workforce(p.106)
- • Extensive geographical distribution network(p.87)
- • ISO certification and quality standards(p.99)
- • Strategic partnership with Euramax(p.87)
- • Export house recognition and membership(p.99)
- • Established manufacturing presence with multiple depot locations across India(p.161)
- • Promoter experience and stable ownership structure(p.144)
- • Low attrition of key managerial personnel(p.140)
- • Single manufacturing facility creates concentration risk(p.30)
- • High dependence on few key suppliers with no long-term agreements(p.25)
- • High reliance on few key dealers and distributors for significant revenue(p.26)
- • Significant unsecured borrowings from promoters repayable on demand(p.32)
- • No long-term agreements with dealers or customers(p.29)
- • Past instances of non-filing and compliance lapses(p.29)
- • Promoters have provided personal guarantees on borrowings(p.29)
- • Negative operating cash flows in recent period(p.33)
- • High unsecured borrowing obligations(p.83)
- • Dependence on distributor channel for majority of sales(p.101)
- • Low capacity utilization historically(p.109)
- • All manufacturing concentrated in single location(p.110)
- • Heavy dependence on unsecured loans from promoters and related parties(p.204)
- • Significant personal guarantees required from promoters for bank facilities(p.186)
- • Pending income tax demands against promoter(p.210)
- • High inventory levels relative to revenue(p.157)
- • Significant trade receivables pending collection(p.184)
- • ACP market expected to grow at CAGR of over 6% during forecast period(p.19)
- • Infrastructure sector is key driver for Indian economy with government focus(p.19)
- • Wide applications of ACPs in construction and automotive sectors(p.19)
- • Export market expansion to multiple countries(p.35)
- • Working capital requirement as stated object of issue indicates growth plans(p.20)
- • R&D investment and product innovation(p.107)
- • Expansion of product portfolio(p.107)
- • Geographic expansion into new territories(p.107)
- • Growth in existing ACP product lines(p.107)
- • India's rapid construction sector growth and infrastructure investment(p.94)
- • Strong ASEAN and Middle East market demand(p.94)
- • Expansion through pan-India distribution network(p.138)
- • Growth in manufacturing and exports of aluminium composite panels(p.178)
- • Access to government incentive programs(p.214)
- • Volatility in raw material supply and pricing beyond company control(p.25)
- • Intense competition from local and international competitors with greater resources(p.26)
- • Pressure on margins from unorganized sector players(p.26)
- • Dependence on real estate and infrastructure sector performance(p.30)
- • Foreign exchange rate fluctuations affecting export revenues(p.35)
- • Regulatory risks and need for license renewals and transfers(p.31)
- • Interest rate fluctuations increase borrowing costs(p.31)
- • COVID-19 pandemic creates uncertainty for operations(p.39)
- • Environmental and safety regulations may increase compliance costs(p.40)
- • Labor-intensive operations vulnerable to strikes and wage pressures(p.38)
- • Volatile raw material and commodity prices(p.95)
- • Availability of cheaper alternative materials(p.94)
- • High manufacturing capital requirements and barriers to entry(p.95)
- • Intense power consumption and energy cost exposure(p.95)
- • Regulatory compliance and safety standards requirements(p.95)
- • Complex and costly repair processes for aluminum panels(p.95)
- • Dependence on imported raw materials subject to forex volatility(p.185)
- • Revenue decline in recent fiscal year(p.197)
- • Multiple pending litigation cases affecting collection(p.207)
- • Recent litigation against company regarding defective goods supply(p.206)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Rajesh Shah | Promoter | 37.26% | — |
| Divyam Shah | Promoter | 11.96% | — |
| Rajesh Shah | Promoter | 37.26% | 27.37% |
| Divyam Shah | Promoter | 11.96% | 8.79% |
| Krishna Shah | Promoter Group | 22.23% | 16.34% |
| Yashvi Shah | Promoter Group | 4.38% | 3.22% |
| Rajesh Shah (HUF) | Promoter Group | 6.67% | 4.90% |
| Rajesh Shah | Promoter | 37.26% | — |
| Divyam Shah | Promoter | 11.96% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.