Euro Pratik Sales IPO: The book build issue worth ₹451.31 crore opens for subscription on 16 September 2025 and closes on September 18, 2025.Here are 5 key risks you should know from the RHP before subscribing
Euro Pratik Sales IPO: 5 Key risks from the RHP
- Euro Pratik Sales Ltd highlighted that they are significantly dependent on their contract manufacturers for manufacturing of products. In the six-month period ended September 30, 2024 and in Fiscals 2024, 2023 and 2022, 32.08%, 70.56%, 56.18%and 46.05%, respectively,of its total value of products purchased were manufactured by its top contract manufacturer and 47.95%, 91.66%, 87.88% and 86.02%, respectively,of its total value of products purchased were manufactured by its top 10 contract manufacturers. Any loss of its contract manufacturers, if not suitably replaced,could materially and adversely affect Euro Pratik Sales business, results of operations and financial condition.
2. Euro Pratik Sales in its RHP have said that “we do not operate any manufacturing facilities and our dependence on contract manufacturers for all our products subjects us to risks which, if realized, could materially and adversely affect our business, results of operations and financial condition”
3. Euro Pratik Sales have also said that they depend significantly on revenue from sale of Decorative Wall Panels, which contributed to 68.97%, 76.54%, 66.12%and54.97% of our revenue from operations for the six-month period ended September 30, 2024 and in Fiscals 2024, 2023 and 2022, respectively. As a result, our business may be materially and adversely affected if we are unable to sell our Decorative Wall Panels as expected or if substitute products become available or gain wider market acceptance.
4. Euro Pratik Sales have said that “We do not own the brand name “Euro Pratik” which is crucial for our operations. Any failure to use, protect and leverage our “Euro Pratik” brand could materially and adversely affect our competitive position, business, results of operations and financial condition.
5. Euro Pratik Sales also have added that “Our Restated Consolidated Financial Information as at and for the six-month period ended September 30, 2024, which includes the effect of the Recent Acquisitions on our financial performance and financial condition, may not be comparable to our Restated Consolidated Financial Information in respect ofprior periods”.
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