Eppeltone Engineers IPO Day 1: Subscription status, GMP, other key details you need to know

The initial public offering (IPO) of Eppeltone Engineers Limited, a company specializing in integrated engineering services and turnkey solutions, opened for subscription on June 17, 2025, drawing considerable attention from retail and institutional investors alike. As market participants assess the fundamentals and grey market sentiment surrounding the issue, here's a comprehensive look at the IPO’s Day 1 performance, grey market premium (GMP), financial profile, and investment outlook.

IPO Subscription Status on Day 1

As of the close of trading on Day 1, Eppeltone Engineers' IPO was subscribed 2.14 times overall, according to data available from stock exchange filings. The retail individual investor (RII) portion saw robust interest with a subscription rate of 3.02 times, indicating strong retail participation. The non-institutional investors (NII) portion stood at 1.74 times, while the qualified institutional buyers (QIB) segment is yet to fully pick up steam, typically more active on the final day.

Key IPO Details:

• Issue Size: ₹36 crore

• Price Band: ₹80-85 per share

• Lot Size: 1600 shares

• Listing Exchange: NSE SME platform

• IPO Dates: June 17 to June 19, 2025

Grey Market Premium (GMP) Trends

The grey market premium (GMP) for Eppeltone Engineers IPO hovered around ₹30-35 on the opening day, signaling healthy investor sentiment. With a price band of ₹85, this translates to a possible listing gain of over 35%, assuming the trend holds.

Market observers believe that the premium reflects investor confidence in the company’s business model and niche positioning in engineering design and project execution services. However, as always, experts caution against relying solely on GMP, given its unofficial nature and volatility.

About the Company

Eppeltone Engineers Ltd. operates in the industrial engineering services sector, offering project management, detailed design, fabrication, and installation services across industries like oil & gas, chemical, infrastructure, and power. The company is headquartered in Gujarat and has executed multiple turnkey projects for domestic and international clients.

Financial Highlights (FY24):

• Revenue: ₹108 crore

• PAT: ₹12.6 crore

• EBITDA Margin: 14.5%

• ROE: 18.3%

• Debt-to-Equity Ratio: 0.52

The IPO proceeds will be primarily used for working capital requirements, expansion of fabrication capacity, and repayment of certain debt obligations.

Market Context and Sector Outlook

The engineering and EPC (Engineering, Procurement, and Construction) sector in India has seen a revival amid the government’s emphasis on infrastructure, manufacturing, and Make-in-India initiatives. Analysts expect the capital goods and industrial services market to expand at a CAGR of 7-9% over the next five years, bolstered by increasing capex from both public and private sectors.

Eppeltone Engineers, with its diversified project portfolio and execution track record, is well-placed to benefit from this macro tailwind.

Analyst Views

Pratik Shah, Analyst at Nuvama Wealth, commented:
"Eppeltone’s niche in turnkey engineering services, coupled with scalable operations and improving margins, makes it a compelling SME play. The valuation appears reasonable when benchmarked against peers in the SME engineering space."

Meena Joshi, IPO Analyst at Ascent Advisors, added:
"The company’s asset-light model and positive cash flows are key strengths. However, the SME IPO space is often prone to speculative movements. Investors should evaluate fundamentals over grey market buzz."

Investor Outlook

The response on Day 1 of the IPO indicates positive retail sentiment, backed by a strong GMP and healthy financials. However, investors must consider the inherent risks associated with SME IPOs, including lower liquidity post-listing and higher volatility.

Long-term investors may find Eppeltone Engineers attractive if they seek exposure to the growing industrial engineering services space. Meanwhile, short-term investors may eye the listing gains, provided GMP trends remain stable.

Key Risk Factors:

• Cyclical nature of engineering services

• Dependence on a limited number of large clients

• Competition from larger EPC firms

• Execution and project delay risks

Eppeltone Engineers’ IPO has opened on a strong note with oversubscription in the retail and NII categories and a promising GMP, setting the stage for a successful issue. While the financials are solid and the market outlook is favorable, investors should remain cautious and base their decisions on individual risk appetite and portfolio goals.