Epack Durable IPO to hit Street on January 19: Check all details here

EPACK Durable is the second largest original design manufacturer (ODM) of room air conditioners in India

Uttar Pradesh-based Epack Durable is set to hit Dalal Street with its initial public offering on January 19. The IPO is a mix of a fresh issue of shares worth Rs 400 crore, and an offer-for-sale (OFS) of 1.04 crore equity shares by the existing shareholders.

The Epack Durable IPO price band is going to be announced in the coming week.

The public issue will be closing on January 23, while the anchor book will be launched for the institutional investors for one day on January 18, a day before the issue opening for three days for subscription.

Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania, Ajay DD Singhania, Pinky Ajay Singhania, Preity Singhania, Nikhil Bothra, Nitin Bothra, and Rajjat Kumar Bothra, who are promoters and part of the promoter group, will be the selling shareholders in the OFS.

Investors India Advantage Fund S4 I and Dynamic India Fund S4 US I will also be sellers in the OFS.

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Promoters hold 65.36 percent shareholding in the second largest original design manufacturer (ODM) of room air conditioners in India. The remaining 34.64 percent shares are held by the public. India Advantage Fund S4 I and Augusta Investments Zero Pte Ltd are the largest public shareholders in the company with 18.52 percent and 13.43 percent stakes, respectively.

Epack Durable, after already being a manufacturer of various components (sheet metal, injection moulded, cross flow fans and PCBA) used in room air conditioners, also expanded operations later in the small domestic appliances (SDA) market by designing and manufacturing induction cooktops, mixer-grinders, and water dispensers.

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Blue Star, Daikin Airconditioning India, Voltas, Havells India, and Haier Appliances (India) are some of its customers in the room air conditioners segment, while in the small domestic appliances, it supplies to Bajaj Electricals, BSH Household Appliances Manufacturing and Usha International, among others.

The fresh issue proceeds raised via Epack Durable IPO will be utilised mainly for the expansion of manufacturing facilities at a cost of Rs 230 crore, and repaying debts amounting to Rs 80 crore, besides general corporate purposes.

The Bothra and Singhania-promoted company registered 83.4 percent on-year growth in net profit at Rs 32 crore for the year ended March FY23, and revenue from operations grew by 66.5 percent to Rs 1,539 crore during the same period.

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EBITDA (earnings before interest, tax, depreciation and amortisation) in FY23 came in at Rs 102.5 crore, up by 49 percent as compared to the previous fiscal year. However, the margin dropped to 6.66 percent from 7.44 percent in the same period.

Furthermore, for the six months period ended September FY24, the firm reported a net profit of Rs 2.65 crore and a revenue of Rs 614.8 crore.

Meanwhile, the basis of allotment of Epack Durable IPO shares will be finalised by January 24 and the equity shares will be credited to the demat accounts of successful investors by January 25.

Its equity shares will be available for trading on the BSE and NSE with effect from January 29, i.e. in T+3 timeline, as per the IPO schedule.

Axis Capital, DAM Capital Advisors and ICICI Securities are the merchant bankers to the issue.

Meanwhile, Epack Durable IPO will be the third public issue getting launched in the current year after Jyoti CNC Automation and Medi Assist Healthcare Services.