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EPACK Durable IPO is a book-built issue of Rs 640.05 crores.
The issue is a combination of a fresh issue of 1.74 crore shares aggregating to Rs 400.00 crores and an offer for sale of 1,30,67,890 shares aggregating to Rs 240.05 crores. The Face value is ₹10 per share
IPO opens for subscription on January 19, 2024, and closes on January 23, 2024. The IPO price band is set at ₹218 to ₹230 per share and the minimum lot size is 65 Shares.
Company Summary
The Epack Durable Limited is the fastest-growing room air conditioner original design manufacturer (“ODM”). It is the second largest ODM manufacturer in the Indian room air conditioner manufacturing market, with a market share of 29% in volume manufactured in Fiscal 2023.
In addition, the company manufactures various components such as heat exchangers, cross-flow fans, axial fans, sheet metal press parts, injection molded components, copper fabricated products, PCBAs, universal motors, and induction coils for captive consumption
Further, the company strategically expanded its operations in the small domestic appliances (“SDA”) market, considering the seasonality of the demand for RACs, and currently designs and manufactures induction cooktops, mixer grinders, and water dispensers.
The company has four production facilities in Dehradun, namely Dehradun Unit I, Dehradun Unit II, Dehradun Unit III, and Dehradun Unit IV, and one manufacturing facility at Bhiwadi, Rajasthan, with an annual production capacity as of March 31, 2023 for manufacturing (i) 0.90 million IDUs, 0.66 million ODUs, 0.36 million ODU kits and 0.42 million WACs and (ii) 0.11 million water dispensers, 1.2 million induction hobs and 0.30 million mixers and their components.
As of March 31, 2023, the company had 734 full-time employees, including engineers, university graduates, and diploma students.
Company Strengths
The Company has long-standing business relationships with several well-known Indian and global customers.
Some of its customers for RAC products include Blue Star Limited, Daikin Airconditioning India Private Limited, Carrier Midea India Private Limited, Voltas Limited, Havells India Limited, Haier Appliances (India) Private Limited, Infiniti Retail Limited, Godrej and Boyce Manufacturing Company Limited, and for its SDA products include Bajaj Electricals Limited, BSH Household Appliances Manufacturing Private Limited, and Usha International Limited.
In addition to the manufacturing and assembling of RACs and SDAs, the company also manufactures various RAC and SDA components, thus facilitating the backward integration of manufacturing operations.
The integration of manufacturing operations has also helped efficiently improve the quality of products and minimize the dependency on third-party suppliers, resulting in increased control over manufacturing time and costs. This has helped in increasing the stickiness of its customers.
Company Financials
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 1,071.45 | 1,464.16 | 1,076.68 | 520.37 |
| Revenue | 616.32 | 1,540.25 | 927.34 | 739.66 |
| Profit After Tax | 2.65 | 31.97 | 17.43 | 7.80 |
| Net Worth | 478.31 | 313.62 | 121.87 | 68.91 |
| Total Borrowing | 369.57 | 492.45 | 383.98 | 238.56 |
Amount in crore |
Objectives of the IPO
Offer for Sale
Each of the Selling Shareholders will be entitled to their respective portion of the proceeds of the Offer for Sale, after deducting their respective portion of the Offer-related expenses and relevant taxes thereon.
Fresh Issue
The Company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects:
- Funding capital expenditure for the expansion / setting up of manufacturing facilities
- Repayment and prepayment, in part or in full, of certain outstanding loans of the Company.
- General corporate purposes.
Company Promoters
The Promoters of the Company are Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania, and Ajay DD Singhania
IPO Details
| IPO Date | January 19, 2024 to January 23, 2024 |
| Listing Date | Monday, January 29, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹218 to ₹230 per share |
| Lot Size | 65 Shares |
| Total Issue Size | 27,828,351 shares (aggregating up to ₹640.05 Cr) |
| Fresh Issue | 17,391,304 shares (aggregating up to ₹400.00 Cr) |
| Offer for Sale | 10,437,047 shares of ₹10 (aggregating up to ₹240.05 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing Exchange | BSE, NSE |
Lot Allocation Details
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 65 | ₹14,950 |
Retail (Maximum) | 13 | 845 | ₹194,350 |
Small-HNI (Minimum) | 14 | 910 | ₹209,300 |
Small-HNI (Maximum) | 66 | 4,290 | ₹986,700 |
Large-HNI (Minimum) | 67 | 4,355 | ₹1,001,650 |
Allotment Schedule
| Basis of Allotment | Wednesday, January 24, 2024 |
| Initiation of Refunds | Thursday, January 25, 2024 |
| Credit of Shares to Demat | Thursday, January 25, 2024 |
| Listing Date | Monday, January 29, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on January 23, 2024 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the offer |
| Retail Shares Offered | Not more than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not more than 15.00% of the Offer |
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