Last Updated on January 17, 2024 by BFSLTeam BFSLTeam
Located in Greater Noida, Epack Durable Limited is India’s fastest-growing outsourced design manufacturer of room air conditioners (RACs). Its customer base includes 4 out of 6 RAC brands dominating the Indian market.
In August 2023, this company filed its DRHP to SEBI to go public with an Initial Public Offering. With its upcoming IPO, company plans to raise funds worth Rs. 400 crore to set up new manufacturing units and repay certain loans. There will also be an OFS of 1.3 crore shares.
Epack Durable Limited announced its IPO opening dates and price band. The IPO will remain open from January 19, 2024, to January 23, 2024. The listing date for this IPO is January 29, 2024.
Also Read: What are types of IPO?
This blog will take you through the important insights about Epack Durable Limited IPO to help you make an informed decision.
Table of Content
Epack Durable IPO Details
The table below displays crucial details about the Epack Durable Limited IPO.
| IPO Open Date | January 19, 2024 |
| IPO Close Date | January 23, 2024 |
| Listing Date | January 29, 2024 |
| Face Value | Rs. 10 per share |
| Price Band | Rs. 218 – Rs. 230 per share |
| Lot Size | 65 shares |
| Total Issue Size | 27,828,351 shares worth up to Rs. 640.05 crore. |
| Fresh Issue | 17,391,304 shares worth up to Rs. 400 crore |
| Issue Type | Book Built Issue IPO |
| Listed on | BSE and NSE |
About the Company
Epack Durable Limited is a prominent and one of the fastest-growing ODM (original design manufacturers) in India specialising in air conditioners and small appliances. As a customer-centric business, this company focuses on continuous innovation and efficiency in operation.
During its initial days in 2003, the company started its journey as an OEM (original equipment manufacturer) for various RAC brands. Epack Durable Limited’s persistent drive and focus to enhance its product development, helped it to evolve as an ODM brand.
With time, the company expanded its business to penetrate the markets of small domestic appliances. The stakeholders took this decision to expand the product portfolio of Epack Durable Ltd after observing the seasonal demand of its RACs.
Also Read: How To Apply For An IPO?
Besides RACs, Epack Durable has been manufacturing and selling induction ovens, water dispensers and mixer grinders in recent years. This plan of business expansion brought a positive change to its yearly revenue system.
To know and cater to the needs of its target audiences and design new RAC models accordingly, Epack Durable Limited has dedicated R&D facilities. The research centres are located in Bhiwandi, Greater Noida and Dehradun regions. They are equipped with SDA induction coils, needle flame testers, automatic voltage testers and other equipment.
The R&D facility in Dehradun was recognised by NABL and awarded an ISO/ IEC 17025:2017 certification. By FY2023, the number of employees in these facilities grew from 30 to 47 in just three years. Epack Durable Limited has a total of three manufacturing units in Dehradun and one in Bhiwadi in Rajasthan.
You can explore our website to learn more about Epack Durable IPO and start your investment journey. Furthermore, you may also open a Demat and trading account on our platform and indulge in a secure and convenient investment process.
IPO Tentative Timeline
Go through the table below to know the tentative dates for the upcoming Epack Durable IPO to plan your investment accordingly.
| Anchor Investment Date | Thursday, January 18, 2024 |
| IPO Open Date | Friday, January 19, 2024 |
| IPO Close Date | Tuesday, January 23, 2024 |
| Cut-off Time for UPI Mandate Confirmation | 5 pm, January 23, 2024 |
| Basis of Allotment | Wednesday, January 24, 2024 |
| Initiation of Refunds | Thursday, January 25, 2024 |
| Credit to Demat | Thursday, January 25, 2024 |
| Listing Date | Monday, January 29, 2024 |
Epack Durable IPO Lot Size
Interested investors can bid for a minimum of 65 shares in one lot. Take a look at the table below for detailed knowledge regarding minimum and maximum investments by retail investors and HNI.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 65 | Rs. 14,950 |
| Retail (Max) | 13 | 845 | Rs. 1,94,350 |
| S-HNI (Min) | 14 | 910 | Rs. 2,09,300 |
| S-HNI (Max) | 66 | 4,290 | Rs. 9,86,700 |
| B-HNI (Min) | 67 | 4,355 | Rs. 10,01,650 |
Company Financials
Take a look at the table below to know about the company’s financial situation to devise an informed investment strategy.
| Particulars | For the Financial Year Ending (in Rupees million*) | ||
| 31 March 2023 | 31 March 2022 | 31 March 2021 | |
| Total Assets | 14,641.55 | 10,766.75 | 5,203.65 |
| Total Liabilities | 11,505.37 | 9,548.10 | 4,514.52 |
| Total Income | 15,402.53 | 9,273.41 | 7,396.58 |
| Total Expense | 14,938.44 | 9,010.39 | 7,287.81 |
| Profit After Tax | 319.72 | 174.34 | 78.03 |
| EBITDA | 1025.25 | 688.03 | 420.33 |
Strengths
Here are a few strengths of EPack Durable Limited that make its IPO worth investing in.
- The company has maintained a longstanding relationship with its customers. As a result, it has high customer retention and brand loyalty.
- Epack Durable follows an advanced and vertically integrated manufacturing model with a product portfolio that aims to capture the RAC and SDA value chain in full spectrum.
- It’s among the largest manufacturers in the SDA and RAC markets, which feature high entry barriers.
- This company is run and managed by an experienced team with an impressive track record.
- It has strong potential and capabilities to focus on product development and design optimisation.
Risks Involved
Besides the above strengths, the following risks associated with the company also affect the company’s business.
- The company’s revenue relies majorly on a handful of important customers. Any discontinuation of business from any of these major customers can significantly impact Epack Durable Limited’s brand reputation and cash flow
- Despite its long-term relationship with customers, very often customers do not look forward to a long-term commitment. Any change in preferences that can lead to cancellation of such collaborations can adversely affect the company’s business.
- The business is highly reliant on its manufacturing units. This exposes the company to a certain degree of risk. Any kind of shutdown or slowdown of the manufacturing process can have a drastic impact on the company’s financial condition.
Conclusion
It is necessary for every investor to know about a company’s strengths and weaknesses by studying the DRHP. This helps them analyse their target company with its peers and make an informed choice.
There are a range of factors you should consider before investing in the upcoming Epack Durable IPO. You should check the company’s business model, profitability, operating costs, major risk factors and leadership. If you are a novice investor, consider seeking guidance from a financial expert.
Frequently Asked Questions
Epack Durable Limited is going to launch an IPO of 27,828,351 equity shares which is worth Rs. 640.05 crore.
The shares of Epack Durable shares will be listed on both BSE and NSE after its IPO launch.
Epack Durable Limited has a total of 6 manufacturing units in India. Four of them are located in Dehradun, one is in Alwar, Rajasthan and one is in Salarpur.
DAM Capital Advisors Limited, Axis Capital Limited and ICICI Securities Limited are the Book Running Lead Managers of the upcoming Epack Durable IPO.
KFin Technologies Limited has been appointed as the registrar of this public issue.
