EPACK Durable Limited is launching its IPO. The IPO opens for subscription on January 19, 2024, and will close on 23rd January 2024.
What does EPACK Durable do?
Established in 2019, EPACK Durable Limited operates within the Indian Original Design Manufacturer (ODM) sector, with a specific emphasis on the room air conditioner (RAC) market.
Key aspects of the company include:
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Core Products: The company designs and manufactures a variety of room air conditioners, including window air conditioners, indoor units, and outdoor units, catering to diverse customer needs.
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Diversified Range: It has expanded its product line to include small domestic appliances, such as induction cooktops, mixer grinders, and water dispensers, broadening its market reach.
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Component Manufacturing: The company fabricates key components for RACs, including heat exchangers, cross-flow fans, and PCBA components, demonstrating its comprehensive manufacturing capabilities.
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Manufacturing Infrastructure: The company operates multiple manufacturing units in Dehradun (Units I, II, III, and IV) and a facility in Bhiwadi, Rajasthan, showcasing its robust production infrastructure.
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Production Capacity: Its annual manufacturing capacity as of March 31, 2023, includes 0.90 million Induction Cooktops, 0.66 million ODUs, 0.36 million ODU kits, 0.42 million Window Air Conditioners, 0.11 million Water Dispensers, 1.2 million Induction Cooktops, and 0.30 million Mixer-Grinders.
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Research and Development: The company places a strong emphasis on R&D, with dedicated centers in Greater Noida, Bhiwadi, and Dehradun, focusing on enhancing product and process innovation.
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Market Position: It is the second-largest room air conditioner ODM in India, based on the number of units made in Fiscal 2023.
What is the issue size of EPACK Durable Limited IPO?
The public offering is a book-built issue valued at Rs 640.05 crores. This issue comprises a fresh issue of 1.74 crore shares, amounting to Rs 400.00 crores, and an offer for sale of 1.04 crore shares, totaling Rs 240.05 crore.
Financials of EPACK Durable Limited IPO
| Financial Year | Total Assets (₹ crores) | Total Revenue (₹ crores) | Profit After Tax (₹ crores) | EPS | EBITDA (₹ crores) |
|---|---|---|---|---|---|
| March 31, 2021 | 520.36 | 739.65 | 7.80 | 1.62 | 42.03 |
| March 31, 2022 | 1,076.67 | 927.34 | 17.43 | 3.47 | 68.80 |
| March 31, 2023 | 1,464.15 | 1,540.25 | 31.97 | 4.64 | 102.52 |
| September 30, 2023 | 1,071.44 | 616.32 | 2.65 | 0.34 | 36.97 |
Risk factors to consider:
Customer Concentration: A significant portion of revenue is generated from a few key customers. The loss of these customers or their financial instability could adversely affect the business.
Manufacturing Dependency: The business relies on three manufacturing facilities, and any slowdown or shutdown in manufacturing operations could hurt the business, financial condition, and results of operations.
Product Innovation: The inability to introduce new products and respond to changing customer requirements promptly may lead to a decline in demand for the products, which could hurt the business.
Seasonal Demand: The business experiences seasonal fluctuations in demand, impacting sales volumes and results of operations.
Unsecured Loans: The company has availed an unsecured loan repayable on demand, which may affect cash flows and financial condition.
Raw Material Supply: Dependency on third parties for raw materials exposes the business to supply risks, which could have a material adverse effect.
Debt Covenants: Non-compliance with debt financing arrangements and restrictive covenants could adversely affect the business and financial condition.
Import Restrictions: Restrictions on the import of raw materials, especially from China, may impact the business.
Transportation Dependence: Reliance on third-party transportation for raw materials and products makes the business vulnerable to delays and increased costs.
Proceeds from Offer for Sale: The company will not receive any proceeds from the Offer for Sale.
Schedule/Timeline of EPACK Durable Limited IPO
| Issue Period | January 19, 2024, to January 23rd, 2024 |
|---|---|
| Price band | ₹ 218 -230 |
| Minimum Bid quantity | 65 & Multiples thereof |
| Deadline for accepting UPI mandate | 5:00 PM on the issue Closing Date. |
| Finalization of Allotment | January 24, 2024 - Wednesday |
| Initiation of Refunds | January 25, 2024 - Thursday |
| Credit of Shares | January 25, 2024 - Thursday |
| Date of Listing | January 29, 2024 - Monday |
| Mandate end date | February 7, 2024 - Wednesday |
| Anchor Investors Lock-In End Date | |
| (50% of the Investment) | February 22, 2024 - Thursday |
| Anchor Investors Lock-In End Date | |
| (Remaining of the Investment) | April 20, 2024 - Monday |
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
How to apply for the EPACK Durable Limited IPO?
You can apply for EPACK Durable Limited IPO using any supported UPI app by following two steps:
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Enter your bid on Kite
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Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status of the EPACK Durable Limited IPO?
You can check the allotment status for the EPACK Durable Limited IPO on the website of the Registrar and Transfer Agent. Alternatively, you can also check the allotment status on the NSE website.