The initial public offer (IPO) by EPACK Durable will open for public bidding on Friday, January 19. The company has fixed the issue price at Rs 218-230 apiece and suggested a lot size of 65 equity shares. Three-day bidding for the issue will conclude on Tuesday, January 23.
EPACK Durable, incorporated in 2019, is an original design manufacturer (ODM) of room air conditioners (RAC). The company 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.
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The IPO includes a fresh share sale of Rs 400 crore and an offer for sale (OFS) of up to 1,04,37,047 equity shares by promoter, promoter group and other selling shareholders, amounting to Rs 240 crore at the upper end of the price band. The company is looking to raise a total of Rs 640 crore via primary offering.
Promoter and promoter group investors Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania, Ajay DD Singhania, Pinky Ajay Singhania, Preity Singhania, Nikhil Bothra, Nitin Bothra and Rajjat Kumar Bothra along with other investors including India Advantage Fund and Dynamic India Fund will be participating in the OFS.
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The net proceeds from the issue would be utilised towards funding capital expenditure for the expansion or setting up of manufacturing facilities; repayment and/or prepayment of certain outstanding loans of the company; and general corporate purposes. Anchor book for the issue will open on Thursday, January 18.
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, of which are located in Dehradun and one manufacturing facility at Bhiwadi, Rajasthan.
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For the period ended on September 30, 2023, the company reported a net profit of Rs 2.65 crore with a total revenue of Rs 616.32 crore. The company clocked a net profit of Rs 31.97 crore with a total revenue of Rs 1,540.25 crore for the financial year ended on March 31, 2023.
The company has reserved half of the net offer or 50 per cent of shares for the qualified institutional bidders (QIBs). Non-institutional investors (NIIs) will get 15 per cent reservation in the offer. The remaining 35 per cent of shares are reserved for retail investors.
Axis Capital, Dam Capital Advisors (formerly IFDC Securities) and ICICI Securities are the book running lead managers of the EPACK Durable IPO, while Kfin Technologies is the registrar for the issue. Shares of the company, if the IPO gets fully subscribed, would be listed at BSE and NSE on Monday, January 29.
