Eppeltone Engineers Limited IPO: Comprehensive Analysis
Eppeltone Engineers Limited, a company specializing in electronic energy meters and power conditioning devices, has opened its Initial Public Offering (IPO) on the NSE SME platform. This report provides a detailed overview of the company, its financials, the IPO details, and expert analysis to help potential investors make an informed decision.
IPO Details at a Glance
Price Band
Issue Size
Lot Size
Minimum Investment (Retail)
Eppeltone Engineers IPO Date & Timeline
| Event | Tentative Date |
|---|---|
| IPO Bidding Opens | June 17, 2025 |
| IPO Bidding Closes | June 19, 2025 |
| Basis of Allotment | June 20, 2025 |
| Initiation of Refunds | June 23, 2025 |
| Credit of Shares to Demat | June 23, 2025 |
| Listing Date | June 24, 2025 (on NSE Emerge) |
Depth Review: Company Overview, Financials & Growth Potential
Company Overview
Established in 1977, Eppeltone Engineers Limited has a long-standing presence in the electronics manufacturing sector. The company's core business involves manufacturing a wide range of products including:
- Energy Management: Smart meters, electronic energy meters, BPL watt-hour meters, and water meters.
- Power Conditioning: UPS systems, high-grade chargers, Switch Mode Power Supplies (SMPS), and Automatic Voltage Regulators (AVR).
- Other Components: MCBs, transducers, LED lights, and battery management systems.
Eppeltone caters to both business-to-business (B2B) and consumer markets, serving government entities, private sector businesses, industries, and residential customers. The company operates from its facilities in Noida and Okhla, with a significant 36,000 sq. ft. plant in Greater Noida.
Objective of the Issue
The net proceeds from the IPO are planned for the following purposes:
- ₹30 Crores: To meet the company's working capital requirements.
- ₹5 Crores: For capital expenditure, primarily for installing new machinery at the factory.
- Remaining Amount: For general corporate purposes and to cover issue-related expenses.
Financial Performance & Key Metrics
The company has shown significant growth in revenue and profitability in the last fiscal year.
Financial Performance (Amount in ₹ Crores)
Key Performance Indicators (KPIs - as of March 31, 2024)
| Metric | Pre-IPO Value | Post-IPO Value | Notes |
|---|---|---|---|
| EPS (Earnings Per Share) | ₹11.79 | ₹8.67 | Diluted due to new shares issued. |
| P/E Ratio (at ₹128/share) | 10.86x | 14.77x | Valuation post-IPO based on the upper price band. |
| RoNW (Return on Net Worth) | 40.79% | Indicates strong profitability relative to shareholder's equity. | |
| PAT Margin | 10.75% | Profit After Tax as a percentage of revenue. | |
Subscription Status & Allotment Chances
The IPO has received a strong response, especially from retail investors. The issue was oversubscribed 8.28 times in total.
IPO Subscription (Times)
IPO Reservation Structure
Allotment Chances
- Retail Investors: With a subscription of 13.05 times, the allotment will be conducted via a lottery system. The chance of getting one lot is approximately 1 in 13.
- Non-Institutional Buyers (NII): Subscribed 6.59 times. Allotment will be proportional, but due to high demand, not all applicants will receive a full allotment.
- Qualified Institutions (QIB): Subscribed 1.20 times, indicating moderate interest from institutional players.
Pros & Cons: Risk Factors vs. Upside
Grey Market Premium (GMP) & Listing Expectations
Grey Market Premium (GMP) is an unofficial indicator of the expected listing price. As of now, specific GMP data is not provided in the source documents. Investors should treat GMP with caution as it can change rapidly and is not a guaranteed measure. Listing expectations will be influenced by market sentiment and the final subscription figures. Given the strong retail interest, a positive listing is anticipated by some market participants, but the expert concerns must be weighed.
Potential Upsides (Pros)
- Strong Financial Growth: Significant jump in revenue and profit in FY2024.
- Diverse Product Portfolio: Caters to multiple sectors including energy, power, and consumer electronics.
- Established Track Record: In business since 1977, indicating long-term operational experience.
- Strong Retail Demand: High subscription in the retail category often indicates potential for listing gains.
- Healthy Profitability Metrics: Impressive RoNW and PAT margins.
Key Concerns & Risks (Cons)
- High Working Capital Needs: A significant portion of IPO funds are for working capital, not aggressive expansion.
- Intense Competition: The company faces competition from established players like 'Genus Power'.
- Low Capacity Utilisation: Key product capacity is only utilized at 49-56%, raising efficiency questions.
- Negative Cash Flow History: A history of negative cash flows can be a red flag for financial stability.
- Elevated Trade Receivables: High trade receivables suggest potential issues with collecting payments from customers.
(As per Sharan Lillaney's analysis for ET NOW)
Anchor Investor Details
Ahead of the IPO, the company raised ₹12.52 crores from six anchor investors on June 16, 2025. The shares were allocated at the upper price band of ₹128 per share. This shows initial confidence from institutional investors.
| Anchor Investor Name | No. of Equity Shares | % of Anchor Portion |
|---|---|---|
| Innovative Vision Fund | 3,40,000 | 34.76% |
| Aarth.AIF | 1,60,000 | 16.36% |
| Kfintech Growth Fund | 1,57,000 | 16.05% |
| Shine Star Build-Cap Private Limited | 1,25,000 | 12.78% |
| Persistent Growth Fund-Varsu India | 1,17,000 | 11.96% |
| Moneywise Financial Services Pvt Ltd | 79,000 | 8.08% |
| Total | 9,78,000 | 100.00% |
Action Plan: How to Apply for the Eppeltone Engineers IPO
- Have a Demat Account: You need an active Demat account to apply for any IPO.
- Use UPI for Application: Most brokerage platforms (like Zerodha, Upstox, Angel One, etc.) support IPO applications via UPI.
- Login to Your Broker's App/Website: Navigate to the IPO section.
- Select Eppeltone Engineers IPO: Choose the IPO from the list of open issues.
- Enter Bid Details:
- Quantity: Enter in multiples of the lot size (1000 shares).
- Price: It is advisable to apply at the 'Cut-off Price' (which is ₹128) to maximize allotment chances.
- Submit Application & Authorize Payment: Enter your UPI ID and submit. You will receive a payment mandate on your UPI app. Approve this mandate to block the funds. The amount will only be debited if you are allotted shares.
Disclaimer: This analysis is based on the information provided in the attached images and the Red Herring Prospectus (RHP). Investing in SME IPOs carries higher risks. Please conduct your own due diligence or consult a financial advisor before investing.
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