EPACK Durable IPO: Everything You Need to Know

Welcome to our comprehensive guide on the EPACK Durable IPO, which is set to open for subscription on January 19, 2024. In this article, we will provide you with a detailed overview of the company’s offerings, key dates, price band, objectives, and much more, ensuring that you stay informed and make well-informed investment decisions. So, let’s delve into the intricacies of this exciting IPO.

EPACK Durable: A Leading Air Conditioner Manufacturer

EPACK Durable
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EPACK Durable is one of India’s prominent air conditioner (AC) manufacturers and holds the distinction of being the second largest room air conditioner (RAC) original design manufacturer (ODM) in India in terms of units manufactured. They have achieved this feat by consistently delivering high-quality products through the ODM route, a testament to their commitment to excellence.

In addition to AC manufacturing, EPACK Durable also specializes in the production of various components such as sheet metal parts, injection molded parts, cross-flow fans, and PCBA components. These components are actively utilized in the production of RACs, further enhancing the company’s role in the industry.

To diversify their business operations and tap into wider market opportunities, EPACK Durable has made strategic forays into the small domestic appliance (SDA) market. Given the seasonal demand fluctuations for RACs, the company has smartly ventured into developing and producing induction hobs, blenders, and water dispensers. This move not only ensures a broader customer base but also positions the company for sustainable growth.

Specialized Research and Development Facilities

EPACK Durable takes pride in being a customer-focused organization, and this dedication is reflected in their specialized research and development facilities. These state-of-the-art facilities are located in Greater Noida, Bhiwadi, and Dehradun. The comprehensive range of apparatus and equipment housed in these facilities enables EPACK Durable to deliver high-performance products.

The research and development facilities include endurance test laboratories dedicated to RACs and SDAs, induction coils functioning as automatic voltage testers and breakdown testers, needle flame testers, and custom-made glow wire testers. With these advanced facilities, EPACK Durable ensures that their products meet rigorous quality standards and adhere to industry-leading benchmarks.

 

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Key Dates and Price Band

For potential investors, understanding the key dates and price band of an IPO is crucial. EPACK Durable IPO is open for subscription from January 19, 2024, and will close on January 23, 2024. The price band for this IPO has been set at ₹218 to ₹230 per equity share of face value ₹10 each. It’s important to note that this is a book built issue with a total value of ₹640.05 crore.

EPACK Durable IPO Details

EPACK Durable IPO comprises a combination of a fresh issue and an offer for sale (OFS). The fresh issue consists of 1.74 crore shares, aggregating to ₹400 crore. Simultaneously, the offer for sale involves 1.04 crore shares, totaling ₹240.05 crore. As part of the OFS, the promoter group intends to sell 51.75 lakh shares worth ₹119 crore.

IPO Lot Size and Objectives

Investors should be aware of the IPO lot size, as it determines the minimum number of shares that can be applied for. In the case of EPACK Durable IPO, the lot size has been set at 65 equity shares, and subsequent allotments will be made in multiples of 65 equity shares.

Regarding the utilization of the net proceeds from the IPO, EPACK Durable has outlined several objectives. These include financing capital expenditures for expanding or establishing manufacturing facilities, repaying or prepaying outstanding company loans, and fulfilling general corporate purposes. Furthermore, the company expects listing its equity shares on stock exchanges to enhance visibility, bolster brand image, and create a public market for their equity shares in India.

 

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IPO Reservation and Allotment Dates

EPACK Durable IPO has allocated specific percentages of shares for different investor categories. Qualified institutional buyers (QIB) have access to a maximum of 50% of the shares offered in the IPO. Non-institutional institutional investors (NII) have a reservation of not less than 15% of the shares, while retail investors have a minimum reserve of 35%.

The basis of allotment for EPACK Durable IPO shares is set to be finalized on Wednesday, January 24. Refunds, if any, will be initiated on Thursday, January 25. Allottees can expect the shares to be credited to their demat accounts on the same day following the refund. It is anticipated that EPACK Durable share price will be listed on both BSE and NSE on Monday, January 29.

Lead Managers, Registrar, and Peer Comparison

The EPACK Durable IPO is being led by renowned book running lead managers, Axis Capital Limited, DAM Capital Advisors Limited, and ICICI Securities Limited. KFin Technologies Limited is serving as the registrar for this IPO.

For investors seeking peer comparison, EPACK Durable’s listed peers include Amber Enterprises India Ltd, PG Electroplast Limited, Dixon Technologies (India) Ltd, and Elin Electronics Ltd. Understanding these industry comparisons can provide valuable insights into the market positioning and potential growth prospects of EPACK Durable.

Grey Market Premium and Estimated Listing Price

The grey market premium (GMP) for EPACK Durable IPO indicates the premium at which shares are being traded outside of the official market. Currently, the GMP for EPACK Durable IPO stands at ₹31, indicating investors’ willingness to pay more than the issue price.

 

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Considering the upper end of the IPO price band and the current GMP, the estimated listing price for EPACK Durable shares is indicated at ₹261 apiece. This corresponds to a 13.48% increase compared to the IPO price of ₹230. The grey market premium provides some insight into the market sentiment surrounding this IPO.

 

The EPACK Durable IPO presents investors with a unique opportunity to be part of a reputable AC manufacturer with a strong market presence in India. With their focus on innovation, customer satisfaction, and diversification into the SDA market, EPACK Durable is well-positioned for long-term growth.

 

 

Source:livemint.com

 

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