EPW India Limited Makes Strong Debut with 14.43% Premium, Lists at ₹111.00 Against Weak Subscription

EPW India Limited, IT electronics refurbishing company providing affordable refurbished laptops, desktops, Chromebooks, monitors, and accessories through business-to-business and direct-to-consumer channels procuring and refurbishing electronics to new condition operating 4,500 square feet in-house refurbishment facility with skilled team of 32 technicians ensuring every product goes through 15-20 day process of testing, repair, cleaning, and software installation generating 54.29% revenue from business-to-consumer segment and 45.20% from business-to-business sales in FY25, made a strong debut on NSE SME on December 30, 2025. After closing its IPO bidding between December 22-24, 2025, the company commenced trading with a premium of 14.43% opening at ₹111.00 and touched ₹116.55 (up 20.15%).

EPW India Limited Listing Details

EPW India launched its IPO at ₹97 per share with minimum investment of 2,400 shares costing ₹2,32,800. The IPO received weak response with subscription of 1.32 times - individual investors at 1.31 times, QIB at 1.17 times, NII at 1.53 times.

First-Day Trading Performance

Listing Price: EPW India opened at ₹111.00 representing premium of 14.43% from issue price of ₹97.00, touched high of ₹116.55 (up 20.15%), with VWAP at ₹112.22, reflecting positive market sentiment with solid listing gains despite weak subscription of 1.32 time.

Growth Drivers and Challenges

Growth Drivers:

Exceptional Growth Trajectory: Revenue surged 188% and PAT jumped 485% between FY24 and FY25, exceptional ROE of 139.17%, ROCE of 35.03%, RoNW of 82.06%, PAT margin of 8.13%, EBITDA margin of 11.64%.

Business Model: Wide range of refurbished products including laptops, desktops, Chromebooks, monitors, and accessories, dual channel approach with business-to-business and direct-to-consumer sales, reliable warranty service, experienced promoter and management expertise.

Operational Capabilities: In-house refurbishment facility with 32 skilled technicians, rigorous 15-20 day refurbishment process ensuring quality, committed to delivering reliable, sustainable, and cost-effective IT products.

Challenges:

Profit Quality Concerns: Analyst highlights sudden boost for FY25 in top and bottom lines raises eyebrows and concern over sustainability, issue appears greedily priced, categorically recommends no harm in skipping this pricey and dicey issue.

High Leverage: Debt-to-equity of 2.32 representing significant financial leverage, total borrowings of ₹12.25 crore increasing to ₹16.96 crore in H1-FY26, ₹8.50 crore of IPO proceeds for debt repayment.

Operational Risks: Operating in highly competitive and fragmented IT electronics refurbishing segment, small paid-up equity capital post-IPO indicating longer gestation period for mainboard migration, extreme price-to-book of 15.06x, significant promoter dilution from 100% to 71.43%, vulnerable to technology obsolescence and changing consumer preferences.

Utilisation of IPO Proceeds

Working Capital: ₹15.85 crore for meeting working capital requirements supporting refurbishment operations and inventory management.

Debt Repayment: ₹8.50 crore for repayment of banking facilities strengthening balance sheet and reducing interest burden.

General Corporate Purposes: ₹3.65 crore for general corporate purposes supporting operational needs and strategic initiatives.

Financial Performance

Revenue: ₹53.34 crore for FY25, phenomenal growth of 188% from ₹18.55 crore in FY24, reflecting rapid expansion in electronics refurbishing operations across business-to-business and direct-to-consumer channels.

Net Profit: ₹4.33 crore in FY25, exceptional growth of 485% from ₹0.74 crore in FY24, demonstrating dramatic improvement in profitability though analyst questions sustainability.