EPACK Durable IPO will open for subscription from 19 January 2024. The company aims for an issue size of ₹640.05 Cr through this IPO.
Company Overview
| Full name | EPACK Durable Limited |
| Sector | Consumer Durables |
| Industry | Air Conditioners |
| Company Website | https://epackdurable.com/ |
About Company
EPACK Durable is the second-largest original design manufacturer (ODM) in the Indian room air conditioner manufacturing market, holding a substantial 29% market share in terms of volume produced during Fiscal 2023. Noteworthy is its rapid growth, making it the fastest-growing ODM in terms of volume manufactured between Fiscals 2020 and 2023. The company not only manufactures components crucial for Room Air Conditioners (RACs) but has also expanded into the small domestic appliance (SDA) market. Currently, it’s focused on developing and producing induction hobs, blenders, and water dispensers to meet the seasonal demand for RACs.
The company operates four production facilities in Dehradun, known as Dehradun Unit I, Dehradun Unit II, Dehradun Unit III, and Dehradun Unit IV. Additionally, there is a manufacturing facility in Bhiwadi, Rajasthan. As of 31 March 2023, the annual production capacity includes (i) 0.90 million IDUs, 0.66 million ODUs, 0.36 million ODU kits, and 0.42 million WACs, as well as (ii) 0.11 million water dispensers, 1.2 million induction hobs, and 0.30 million mixer grinders and their components. Furthermore, the company is in the process of establishing a third facility in Sri City, Andhra Pradesh.
In the six months ended 30 September 2023, FY 2023, 2022, and 2021, the top five customers of EPACK Durable collectively contributed INR 489.49 crore, INR 1,272.03 crore, INR 709.99 crore, and INR 524.36 crore to the revenue from operations. This constituted 79.62%, 82.66%, 76.82%, and 71.22% of the total revenue, respectively. The company has a dedicated R&D team comprising 57 full-time employees, as of 30 September 2023, which grew from 30 as of 31 March 2021.
The Objectives of the Issue
- Funding capital expenditure for the expansion/setting up of manufacturing facilities;
- Repayment and/or prepayment, in part or in full, of certain outstanding loans of the company;
- General corporate purposes.
EPACK Durable IPO Timetable
| IPO Opening date | 19 January 2024 |
| IPO Closing | 24 January 2024 |
| Basis of Allotment | 25 January 2024 |
| Initiation Refund | 29 January 2024 |
| Credit to Demat Account | 29 January 2024 |
| Listing Date | 30 January 2024 |
EPACK Durable IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹640.05 Cr – 27,828,351 shares |
| Fresh Issue | ₹400 Cr – 17,391,304 shares |
| Offer for sale | ₹240.05 Cr – 10,437,047 shares |
| Face value | ₹10 per share |
| Price Band | ₹218 to ₹230 per share |
| Lot size | 65 Shares |
| Shareholding pre-issue | 78,407,387 |
| Shareholding post-issue | 95,798,691 |
| Listing Exchange | BSE & NSE |
EPACK Durable IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 65 | ₹14,950 |
| Retail (Max) | 13 | 845 | ₹194,350 |
| S-HNI (Min) | 14 | 910 | ₹209,300 |
| S-HNI (Max) | 66 | 4,290 | ₹986,700 |
| B-HNI (Min) | 67 | 4,355 | ₹1,001,650 |
EPACK Durable IPO Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
EPACK Durable Financial Performance
| FY 2021 | FY 2022 | FY 2023 | H1 FY 2024 | |
| Revenue | 736.25 | 924.16 | 1,538.83 | 614.80 |
| Expenses | 728.78 | 901.04 | 1,493.84 | 611.78 |
| Net income | 7.80 | 17.43 | 31.97 | 2.65 |
| Margin (%) | 1.06 | 1.89 | 2.08 | 0.43 |
EPACK Durable Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 1.62 | 3.47 | 4.64 |
| PE ratio | – | – | 46.98 – 49.57 |
| RONW (%) | 12.00 | 18.28 | 14.68 |
| NAV | 14.31 | 24.25 | 46.21 |
| ROCE (%) | 11.72 | 13.68 | 11.85 |
| EBITDA (%) | 5.71 | 7.44 | 6.66 |
| Debt/Equity | 3.47 | 3.15 | 1.58 |
Company Promoters
- Bajrang Bothra
- Laxmi Pat Bothra
- Sanjay Singhania
- Ajay DD Singhania
Promoter Holding
| Pre Issue Share Holding | 85.49% |
| Post Issue Share Holding | 65.36% |
EPACK Durable Lead Manager(s)
- Axis Capital Limited
- DAM Capital Advisors Ltd (Formerly Idfc Securities Ltd)
- ICICI Securities Limited
EPACK Durable Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Tel: 91 40 6716 2222 / 1800 3094001
E-mail: epack.ipo@kfintech.com
Website: www.kfintech.com
EPACK Durable Contact Details
EPACK DURABLE LIMITED
61-B, Udyog Vihar, Surajpur, Kasna Road, Greater Noida,
Gautam Buddha Nagar 201 306, Uttar Pradesh, India
Phone: +91 120 256 9077
Email: investors_ed@epack.in
Website: www.epackdurable.com
EPACK Durable IPO Allotment Status
EPACK Durable IPO allotment status will be available on the KFin Tech website. Click on this link to get allotment status.
Final thoughts
EPACK Durable IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
