Eppeltone Engineers Limited, one of India’s prominent manufacturers of electronic energy meters and smart metering systems, made a spectacular debut on the NSE SME platform, listing at a massive 90% premium over its issue price. The stock opened at ₹243, significantly higher than the IPO issue price of ₹128 per share, and further surged 5% to hit the upper circuit at ₹255.35, reflecting a 99.5% increase from the IPO price.

This outstanding market debut comes on the back of strong investor enthusiasm during the initial public offering, where the IPO of ₹43.95 Crores—entirely a Fresh Issue of 34.34 lakh equity shares—was oversubscribed by 275.66 times. The listing took place on June 24, 2025, following an allotment on June 20, 2025.

The share price band for the IPO was fixed between ₹125 to ₹128 per share, with a minimum application size of ₹1,28,000 for retail investors and ₹2,56,000 for High-Net-Worth Individuals (HNIs). The issue was managed by Expert Global Consultants, with Skyline Financial Services acting as the registrar and Prabhat Financial Services as the market maker.

Exceptional Listing Performance

The listing of Eppeltone Engineers on the NSE SME segment has drawn widespread attention due to its exceptional performance. Within minutes of market opening, the stock price rallied to hit its upper circuit limit of ₹255.35, indicating strong demand and limited supply in early trade. This nearly doubles the investor returns on Day 1, making it one of the most successful SME listings in 2025 so far.

Market observers attribute this strong performance to a combination of robust fundamentals, favourable industry dynamics, and investor confidence, bolstered by the company’s solid track record and growth-oriented business model.

Strong Pre-Listing Momentum

The IPO had earlier garnered immense interest from institutional and retail investors alike. On the final day of subscription, the issue was subscribed 275.66 times, reflecting extraordinary demand for the shares. Additionally, anchor investors were allotted 9,78,000 shares at ₹128, aggregating to ₹12.51 Crores, a sign of early confidence from informed market participants.

Prior to listing, the stock enjoyed a healthy Grey Market Premium (GMP) of ₹50, suggesting a listing price of around ₹178. However, the actual listing at ₹243 exceeded market expectations, underscoring a strong demand-supply dynamic and positive investor sentiment.

About Eppeltone Engineers Limited

Founded in 1977, Eppeltone Engineers began as a manufacturer of Switch Mode Power Supply (SMPS) for electronics and gradually diversified into a broader range of power conditioning and metering solutions. Today, the company designs and manufactures:

• Electronic Energy Meters

• Smart Meters (as per BIS 16444 standards)

• Water Meters, BPL Kits

• UPS systems

• Battery chargers and management systems

• Railway components like underslung chargers, short neutral section assemblies, and modular cantilevers

It operates predominantly in the B2B segment, catering to Government departments, electricity distribution utilities, institutional buyers, aggregators, and private sector contractors. Over the years, the company has developed strong relationships with 30+ government organisations and several central PSUs.

The company moved its key operations to Greater Noida, Uttar Pradesh, in 2016 to meet rising demand. With a strong focus on customized high-performance products, Eppeltone helps power utilities reduce Aggregate Technical and Commercial (AT&C) losses, contributing to India’s energy efficiency goals.

Industry Outlook: Powering the Future

The Indian electricity sector is in the midst of a transformation. As of January 2024, the installed generation capacity stood at 430 GW, with a significant push towards renewable energy. The government’s ambitious plan to replace 250 million traditional meters with smart meters by FY2026 under the RDSS scheme is creating massive opportunities for companies like Eppeltone Engineers.

Smart meters enable:

• Real-time energy monitoring

• Improved billing accuracy

• Reduction in electricity theft

• Support for dynamic pricing and demand-side management

• Integration with renewable energy sources

Although only 8.6 million smart meters have been installed so far, 222.3 million have been sanctioned, and 108.1 million tendered, leaving enormous room for growth.

With the rise of electric vehicles (EVs) and an increased focus on smart grids, the demand for metering infrastructure and energy management solutions is set to surge, making Eppeltone’s offerings more relevant than ever.

Use of IPO Proceeds

The net proceeds from the IPO are earmarked for:

• ₹30 Crores towards working capital needs

• ₹5 Crores for installation of new machinery to enhance production capacity

• The remaining funds for general corporate purposes

This strategic deployment is expected to boost operational efficiency, expand product capacity, and support the company’s plans for geographical and product diversification.

Competitive Strengths

Eppeltone Engineers boasts several key strengths that have contributed to its successful IPO and market performance:

• Innovative and diverse product portfolio tailored to utility and institutional needs

• Experienced promoters and professional team

• Robust supply chain with reliable vendor networks

• Established relationships with state utilities and government buyers

• Commitment to quality, ensuring repeat business and brand credibility

Business Strategies

To sustain its growth trajectory, the company aims to:

• Expand into new Indian states and international markets

• Launch gas and water metering products

• Enhance operational efficiencies through automation and digitalisation

• Shorten working capital cycles

• Maintain high quality benchmarks to remain competitive in tenders and contracts

Risk Factors

While the company enjoys a strong position, it faces some challenges:

• High revenue dependence on a few states; any policy or political change could impact revenues

• Reliance on government tenders, which are subject to delays or cancellations

• High customer concentration, with top 10 clients contributing over 89% of revenue

• Strict performance requirements under contracts, with penalties for delays or non-compliance

These risks underline the need for diversification and operational agility, both of which the company is actively pursuing.

Conclusion

The stellar listing performance of Eppeltone Engineers on the NSE SME platform stands as a testament to market confidence in its business fundamentals, industry relevance, and growth potential. The almost 100% premium on listing day has not only rewarded IPO investors handsomely but also elevated the company’s visibility among institutional and retail market participants.

With India’s smart metering push, energy sector reforms, and demand for power infrastructure expected to intensify in the coming years, Eppeltone Engineers is strategically positioned to ride the next wave of energy transformation. The IPO success could serve as a blueprint for other energy-tech SMEs aiming to capitalise on India’s digital and sustainable energy roadmap.

The journey ahead may present challenges, but with a strong foundation, focused leadership, and a clear roadmap, Eppeltone Engineers appears well-equipped to deliver consistent performance and create long-term shareholder value in India’s emerging energy ecosystem.

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