Epack Durable IPO: All You Need To Know
The offering comprises fresh issue as well as an offer for sale.
Epack Durable Ltd.'s initial public offering opened on Friday, with a total issue size of Rs 640.1 crore.
The air-conditioner original design manufacturer has set a price band of Rs 218–230 per share at a face value of Rs 10 each for the IPO.
The offering comprises a fresh issue as well as an offer for sale. The company will issue fresh equity worth Rs 400 crore in the three-day issue. The OFS will see promoters and investors sell over 1.04 crore equity shares.
At the upper limit of the price band, the company is looking to raise Rs 240.05 crore.
Issue Details
Issue opens: Jan. 19.
Issue closes: Jan. 23
Total issue size: Rs 640.1 crore.
Face value: Rs 10 apiece.
Fixed price band: Rs 218-230 per share.
Minimum lot size: 65 shares.
Listing: NSE and BSE.
Use Of Proceeds
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.
Business
The company also manufactures components such as sheet metal parts, injection moulded parts, cross-flow fans, and PCBA components that are actively used in the production of RACs.
The company has expanded its business into the small domestic appliance market, particularly given the seasonal demand for RACs, and is currently developing and producing induction hobs, blenders, 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. It has one manufacturing facility at Rajasthan's Bhiwadi.
The company's revenue grew at a CAGR of 45% in FY23, while its Ebitda rose 57% CAGR during the period.
Key Risks
Manufacturing relies on contract labour; any shortage or regulatory challenge may disrupt operations.
In a competitive industry, the company's inability to thrive could harm its business, financial well-being, and cash flow.
EPack's revenue heavily depends on a small number of key customers; losing them may affect the company's business, financial health, and overall performance.
The air-conditioner business experiences financial fluctuations due to seasonal changes and market cycles.
