Eppeltone Engineers is listed on NSE SME at ₹242.2 price with a stellar 90% premium from the issue price

The electronic energy meters and power conditioning devices manufacturer, Eppeltone Engineers Limited, made a stellar debut on the National Stock Exchange SME platform. After closing its IPO bidding between June 17 - June 19, 2025, the company made its stock market debut on June 24, 2025, at a remarkable 90% premium to the issue price, delivering exceptional returns to investors. This book-building IPO raised ₹43.96 crore with an outstanding subscription of 296.34 times, reflecting extraordinary investor confidence for the electronic manufacturing sector as the company aims to expand working capital requirements and enhance production capabilities.

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Eppeltone Engineers IPO Listing Details

Eppeltone Engineers Limited launched its IPO through the book-building process, and the Eppeltone Engineers stock price was set at ₹128 per share. The minimum investment required was 1,000 shares costing ₹1,28,000. The IPO received a phenomenal response with an overall subscription of 296.34 times - retail segment at 248.04 times, QIB at 132.23 times, and NII at an extraordinary 627.28 times by the final day of bidding, indicating exceptional investor interest across all categories. Eppeltone Engineers' share price is listed at ₹242.2 on NSE SME, offering a stellar 90% premium from the issue price. Eppeltone Engineers' stock price debut reflects outstanding market sentiment and an exceptionally positive investor approach towards the company.

Listing Price: The Eppeltone Engineers share price opened at ₹242.2 on NSE SME on June 24, 2025, representing a premium of 90% from the issue price of ₹128, delivering exceptional gains for investors at listing.

First-Day Trading Performance Outlook

Eppeltone Engineers IPO commenced trading on the NSE SME on June 24, 2025, witnessing an outstanding stock market debut. The Eppeltone Engineers share price opened at ₹242.2, marking a stellar 90% premium from its IPO price of ₹128, delivering exceptional returns to investors at listing. The listing performance comfortably beat grey market expectations, which had indicated a listing around ₹218 based on the last reported GMP of ₹90. The company entered the market with established operations in electronic energy meters and power conditioning devices, primarily serving government clients through its 36,000 sq. ft. production facility in Greater Noida.

Growth Drivers and Challenges

Eppeltone Engineers presents significant growth potential with its diversified electronic manufacturing portfolio, strong government client relationships, and comprehensive energy management solutions. The growing digitalisation of power infrastructure and smart meter adoption support demand for electronic energy meters and related products. However, the company faces challenges, including intense competition in the highly competitive and fragmented electronic manufacturing segment, concerns about the sustainability of recent profit surges noted by analysts, and dependency on government contracts affecting business stability.

Growth Drivers:

• Diversified Product Portfolio: Comprehensive range including electronic energy meters, smart meters, UPS systems, AVR, MCBs, transducers, battery management systems, and LED luminaires catering to multiple applications
• Government Client Focus: Primary business model serving government entities with established relationships and repeat business opportunities in the B2B segment, ensuring stable revenue streams
• Manufacturing Infrastructure: 36,000 sq. ft. primary manufacturing facility in Greater Noida with supporting units in Noida and Okhla, New Delhi for specialised production and R&D activities
• Quality Certifications: Advanced manufacturing and R&D capabilities with a strong focus on quality certifications and compliance standards, ensuring product reliability
• Financial Performance: Strong revenue growth of 57% and solid PAT growth of 38% in FY25, showcasing improved operational efficiency and business expansion

Challenges:

• Sustainability Concerns: Analysts are noting concerns about a sudden boost in bottom lines from FY24 onwards, raising questions about long-term profitability sustainability
• Competitive Market: Operating in a highly competitive and fragmented electronic manufacturing segment with pressure from established players and pricing challenges
• Government Dependency: Heavy reliance on government contracts creates exposure to policy changes, payment delays, and procurement cycle variations
• Fully Priced Valuation: Analysts note the issue appears fully priced based on recent financial data, suggesting potential overvaluation risks despite strong listing performance

Utilisation of IPO Proceeds

Eppeltone Engineers plans to utilise the ₹43.96 crore raised from the fresh issue to strengthen its operational capabilities and support business expansion.

• Working Capital Requirements: ₹30 crore allocated for working capital requirements to support business operations, inventory management, and contract execution for electronic manufacturing activities.
• Capital Expenditure: ₹5 crore designated for funding capital expenditure towards the installation of additional machinery at the factory to enhance production capacity and operational efficiency.
• General Corporate Purposes: Remaining funds allocated for general business needs and corporate initiatives to support strategic growth plans and operational requirements.

Financial Performance of Eppeltone Engineers IPO

Eppeltone Engineers has shown exceptional financial performance with strong growth across key metrics:

• Revenue: ₹125.74 crore for FY25, demonstrating robust business momentum with 57% growth from ₹80.04 crore in FY24, reflecting strong demand for electronic energy meters and power conditioning devices.
• Net Profit: ₹11.23 crore in FY25, showing a solid growth trajectory with 38% growth from ₹8.16 crore in FY24, showcasing improved operational efficiency and margin expansion through business scaling.
• Financial Metrics: The company shows impressive ROE of 41% and strong ROCE of 43%, though with an elevated debt-to-equity ratio of 0.79, indicating leveraged capital structure and moderate financial risk.

Eppeltone Engineers offers an exceptional investment opportunity in the electronics manufacturing sector with its diversified product portfolio, strong government relationships, and outstanding financial performance. While it faces challenges like sustainability concerns, competitive market dynamics, and fully priced valuation, its manufacturing expertise and established market position provide significant potential for capitalising on India's growing demand for electronic energy meters and power infrastructure digitalisation. The stellar listing performance with a 90% premium and extraordinary subscription of 296.34 times reflects exceptional investor confidence towards the company's business model and growth prospects in the electronic manufacturing market.