Eppeltone Engineers Ltd IPO

The IPO opens on 17 Jun 2025 & closes on 19 Jun 2025.

Eppeltone Engineers Limited was originally incorporated as Eppeltone Engineers Private Limited' on September 18, 2002 with the Registrar of Companies, Delhi. Further, the status of the Company is converted into a Public Limited Company on May 29, 2024 and the name has been changed to 'Eppeltone Engineers Limited' vide certified dated June 19, 2024 issued by the RoC to Company. The Company is a leading metering company in India, specializing in Switch Mode Power Supplies (SMPS) for computers and other electronic devices, and has progressively diversified its manufacturing capabilities to encompass a broader portfolio, featuring AVR, UPS, MCBs, and transducers. It is engaged mainly into manufacturing of electronic energy meters and various power conditioning devices like high grade chargers, UPS systems, etc. to consumers from institutions, industries and electricity distribution utilities. The Company began its operations in year 1977 and now operates a single manufacturing plant in producing high-quality products. The Company in 2002, started production of LCD based Static Meter Energy Meters. Later, it installed a fully automatic SMT line and moulding machines in 2009. It ventured into manufacturing of Smart Energy and Water Meters in 2016; launched the Water Meter product in 2017; launched CT Meter with completion of the entire LT meters in 2019 and thereafter, launched Smart Meters in 2020. Since then, the Company has expanded business operations by setting up of manufacturing facilities to produce energy meters as a multifaceted industry player. It is running an industrial unit engaged in manufacturing of static electricity meter and smart electricity meters for the over 20 years. Company launched the IPO by raising Rs 43.95 Crore and issued 34,34,000 equity shares of face value of Rs 10 each in June, 2025.

Eppeltone Engineers Ltd IPO will close on 19 Jun 2025.

<ul><li>Established brand in the electric equipment industry.</li><li>Product portfolio.</li><li>Strong manufacturing facilities with a focus on technology upgradation.</li><li>Established relationship with customers and strong pre-qualification credentials.</li><li>Experienced management team and skilled workforce.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Rohit Chowdhary</td> <td>5127540</td> <td>53.83</td> <td>5127540</td> <td>39.57</td> </tr> <tr> <td>2</td> <td>Deven Chowdhary</td> <td>2804000</td> <td>29.44</td> <td>2804000</td> <td>21.64</td> </tr> <tr> <td>3</td> <td>Reshu Chowdhary</td> <td>19930</td> <td>0.21</td> <td>19930</td> <td>0.15</td> </tr> <tr> <td>4</td> <td>Divya Sharma</td> <td>19930</td> <td>0.21</td> <td>19930</td> <td>0.15</td> </tr> </tbody> </table>

<ul><li>The company has obtained some of its contracts through government tenders, unavailability or any failures to secure these tenders in the future may adversely affect its business operations and financial conditions.</li><li>The company does not have long-term contracts with its suppliers and therefore, there may be potential unavailability of raw materials in future, which may adversely affect its business operations.</li><li>Significant portion of its revenue has been generated from some states of India, any loss of business from these states may adversely affect its revenues and profitability.</li><li>Its Registered Office from where the company operate is not owned by it.</li><li>The Company is dependent on few numbers of customers for sales. Loss of any of this large customer may affect its revenues and profitability.</li><li>Its failures to perform in accordance with the standards prescribed in work order of its client could result in loss of business or payment of liquidated damages.</li><li>The company has experienced negative cash flows in the past. Any such negative cash flows in the future could affect its business, results of operations and prospects.</li><li>If the company experience insufficient cash flows from its operations or are unable to borrow to meet its working capital requirements, it may materially and adversely affect its business, results of operations and cash flows.</li><li>The company is exposed to credit risk from its customers and the recoverability of its trade receivables is subject to uncertainties.</li><li>The Company is involved in certain legal proceedings/litigations. Any adverse decision in such proceedings may render it/them liable to penalties and may adversely affect its business and result of operations.</li><li>The Company operation and growth is dependent upon successfully implementation its business strategies.</li><li>If the company experience delays and/or defaults in client payments, its may be unable to recover all expenditures.</li><li>The Company is yet to place orders for its plant & machinery for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machinery may delay its implementation schedule and may also lead to increase in price of these plant & machinery, further affecting its revenue and profitability.</li><li>Restriction on its Merchant Banker/ Book Running Lead Manager from undertaking new assignments may create a perception risk and could impact investor confidence.</li><li>The Company has delayed in complying with certain statutory forms under various laws. Such delayed compliance /lapses may attract certain penalties.</li><li>Its contingent liabilities as stated in the company Restated Financial Statements could adversely affect its financial condition.</li><li>The Company has obtained loans amounting to Rs. 1,089.46 Lakhs that may be recalled by the lenders at any time.</li><li>The Company operations requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.</li><li>In the past Company had delayed in the EPF and GST returns. This may adversely affect the financial performance and regulatory compliance of the company.</li><li>Its business operations are subject to various operating risks at the company sites, accidental risk, the occurrence of which can affect its results of operations and consequently, financial condition of the Company.</li><li>Its inability to effectively manage supply chain execution may lead to delays which may affect its business and results of operations.</li><li>There is no monitoring agency appointed by the Company and the deployments of funds are at the discretion of its Management and our Board of Directors, though it shall be monitored by the Audit Committee.</li><li>The Company is unable to work on its full potential and utilize its full capacity for the production and manufacturing of products.</li><li>The Objects of the Issue for which funds are being raised, are based on its management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".</li><li>Its profitability and business operations is significantly dependent on the company ability to successfully anticipate the industry and client requirements. Any failures on its part to do so, may have an impact on its operations, which could have an adverse effect on its revenue, reputation, financial conditions, results of operations and cash flows.</li><li>The company operates in highly competitive markets and its inability to compete effectively may lead to lower market share or reduced operating margins, and adversely affect its results of operations.</li><li>Any infringement of third party intellectual property rights or failures to protect its intellectual property rights may adversely affect its business.</li><li>Certain Agreements, deeds or licenses, statutory approvals and certificates may be in the previous name of the company, the company has to update the name of the company in all the statutory approvals and certificates due to the conversion of the Company.</li><li>The company is subject to stringent labour laws or other industry standards and any strike, work stoppage, Lockout or increased wage demand by its employees or any other kind of disputes with its employees could adversely affect its business, financial condition and results of operations.</li><li>The company is dependent on its promoters and the company management team and the loss of, or its inability to hire, retain, train, and motivate qualified personnel could adversely affect its business, results of operations and financial condition.</li><li>Its Promoters, together with the company Promoter Group, will continue to retain majority shareholding in the Company after the Issue, which will allow them to exercise significant control over it. The company cannot assure you that its Promoters and Promoter Group will always act in the best interests of the Company or you.</li><li>The company is subject to various laws and regulations and required to comply with several regulatory compliance requirement, in jurisdictions where the company operates, including environmental and health and safety laws and regulations, which may subject it to increased compliance costs, which may in turn result in an adverse effect on its financial condition.</li><li>Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.</li><li>The Company is subject to foreign exchange control regulations which can pose a risk of currency fluctuations.</li><li>The Company has not paid any dividend in past 3 financials years and its ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.</li><li>Certain sections of this Red Herring Prospectus contain information from the D&B Report which has been prepared exclusively for the Offer and exclusively commissioned and paid for by it. There can be no assurance that such report is complete, and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.</li><li>Its insurance coverage may not be sufficient or adequate to protect the company against all material hazards or business losses, which may adversely affect its business, results of operations and financial condition.</li><li>Changes in technology may affect its business by making the company equipment or products less competitive or obsolete.</li><li>The average cost of acquisition of Equity Shares by its Promoters may be lower than the Issue Price.</li><li>The company has issued Equity Shares at prices that may be lower than the Issue Price in the last 12 months.</li><li>Its operations depend on the availability of timely and cost-efficient transportation and other logistic facilities and any prolonged disruption may adversely affect its business, results of operations, cash flows and financial conditions.</li><li>The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially have an adverse effect on its business.</li><li>Significant disruptions of information technology systems or breaches of data security could adversely affect its business.</li><li>The Company has not entered into any written agreements or contracts with Government bodies for sale of its products as a customer.</li><li>Its Directors & Promoters, Senior Management and Key Managerial Personnel have no interests other than reimbursement of expenses incurred and normal remuneration or benefits in the Company.</li><li>There are certain restrictions on daily movements in the price of Equity Shares, which may adversely affect a shareholder's ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.</li><li>After this Issue, the price of the Equity Shares may be highly volatile, or an active trading market for the Equity Shares may not develop.</li><li>Market price of its share will be decide by market forces and issue price of equity share may not be indicative of the market price its share price after the issue.</li></ul>

The Issue type of Eppeltone Engineers Ltd is Book Building - SME.

The minimum application for shares of Eppeltone Engineers Ltd is 1000.

The total shares issue of Eppeltone Engineers Ltd is 3434000.

Initial public issue of upto 34,34,000* equity shares of face value of Rs. 10/- each (the "Equity Shares") of Eppeltone Engineers Limited ("the Company" or "the Company") at an issue price of Rs. 128 per equity share (including share premium of Rs. 118 per equity share) for cash, aggregating up to Rs. 43.96 crores ("Public Issue") out of which upto 1,72,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 128 per equity share for cash, aggregating Rs. 2.20 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of upto 32,62,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 128 per equity share for cash, aggregating upto Rs. 41.76 crores is herein after referred to as the "Net Issue". The public issue and net issue will constitute 26.50% and 25.17% respectively of the post-issue paid-up equity share capital of the company.