Eppeltone Engineers Limited, a Delhi-based engineering solutions provider, witnessed a robust investor response on Day 1 of its Initial Public Offering (IPO), with the issue being subscribed 4 times overall. The surge in demand was complemented by a significant jump in the Grey Market Premium (GMP), which rose to 49 percent, reflecting market confidence in the company’s fundamentals and IPO pricing.

The IPO opened for subscription on June 20, 2025, and will close on June 24, 2025, with allotment expected by June 25. The company plans to list its shares on the NSE SME platform tentatively on June 27, 2025.

Day 1 Subscription Breakdown

The Day 1 subscription data paints a strong picture of investor enthusiasm:

• Retail Individual Investors (RIIs): 6.3x

• Non-Institutional Investors (NIIs): 3.2x

• Overall Subscription: 4.02x

Such figures on the first day typically indicate a high chance of full oversubscription by the end of the offer period, increasing the likelihood of strong listing performance.

Grey Market Premium (GMP) Surge

The Grey Market Premium for Eppeltone Engineers IPO rose sharply to 49 percent over the issue price, indicating a potential listing price of ₹104 to ₹108 if the trend sustains.

While GMP is not officially regulated, it is widely used by investors to gauge unofficial demand in the pre-listing period. In this case, the high GMP adds momentum to the IPO narrative, attracting even more interest from retail and HNI segments.

Company Overview

Eppeltone Engineers Limited, incorporated in 2001, provides customised electromechanical and automation solutions to industries such as:

• Oil and gas

• Water treatment

• Manufacturing and utilities

• Renewable energy

The company is known for its end-to-end design, integration, and maintenance services, and is increasingly focusing on energy-efficient and digital automation products to meet the growing demand in smart infrastructure.

IPO Details and Use of Proceeds

• IPO Price Band: ₹70 to ₹72 per share

• Lot Size: 1,600 shares

• Minimum Retail Investment: ₹1,15,200

• Issue Size: ₹18 crore (fresh issue only)

The IPO proceeds will be used for:

• Expanding technical infrastructure and workshop facilities

• Strengthening working capital

• R&D investment in control system technology

• General corporate purposes

The issue is managed by Shreni Shares Limited, a growing name in SME IPO management.

Financial Highlights

Eppeltone Engineers has displayed consistent financial growth, which has contributed to the positive response:

• Revenue (FY24): ₹42.8 crore

• EBITDA (FY24): ₹6.1 crore

• Profit After Tax (FY24): ₹4.4 crore

• ROCE: 22.4%

• ROE: 21.3%

Its post-issue P/E ratio stands at 14.5x, while industry peers trade at 18–20x, suggesting that the IPO is reasonably priced for the segment.

Analyst Opinions

Market observers have praised the company’s engineering expertise, sector relevance, and manageable valuation. Key insights include:

• Solid Day 1 subscription indicates broad investor interest

• GMP rise suggests strong speculative and retail confidence

• Reasonable valuation adds to investor appeal in the SME space

Some analysts, however, caution that SME IPOs are prone to post-listing volatility, especially when listing gains attract short-term investors.

Market Sentiment and Risks

The IPO is riding on:

• Growing demand for automation in traditional sectors

• Strong push toward digital infrastructure in India

• Renewable energy-linked industrial solutions

Risks include:

• Dependence on cyclical industrial demand

• Limited institutional participation so far

• SME liquidity constraints post-listing

Conclusion

The Eppeltone Engineers IPO has kicked off on a positive note, with a 4x subscription on Day 1 and a 49 percent Grey Market Premium, indicating high chances of a strong listing.

Stable financials, sectoral relevance, and fair pricing have made the IPO attractive to both retail and HNI investors. If the momentum continues over the next two days, the issue could emerge as one of the more successful SME IPOs in June 2025.

Recommendation: Positive outlook for listing gains and medium-term holding. Watch for final subscription and allotment updates.

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

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