EPack Durable Limited IPO: An Overview and Corporate Insight
Founded in 2019, EPACK Durable Limited is a room air conditioner (RAC) Original Design Manufacturer (ODM).
In addition, the company produces PCBA components, cross-flow fans, injection-moulded parts, sheet metal parts, and other components that are directly utilised in the manufacturing of RACs. Given the seasonal need for RACs, the company has extended its business into the small domestic appliance (SDA) sector. Presently, it is creating and manufacturing water dispensers, blenders, and induction hobs.
The company operates one manufacturing site in Bhiwadi, Rajasthan, and four production facilities in Dehradun: Dehradun Unit I, Dehradun Unit II, Dehradun Unit III, and Dehradun Unit IV.
Grey Market Premium Analysis and IPO Timelines – EPack Durable IPO
EPACK Durable IPO GMP as of today is ₹15. On January 18, 2024, the shares of EPACK Durable Ltd. were trading on the grey market for ₹15 premium., the shares were traded on the Grey Market. As a result, it now has a share premium of Rs 15 over the Rs 230 cap price.
Pricing Details and Lot Size – EPack Durable Limited IPO
The price band for EPack Durable IPO is ₹218 to ₹230 per share and the bid lot size is 65 shares.
Book-Running Lead Managers and Registrar – EPack Durable Limited IPO
Axis Capital, DAM Capital Advisors, and ICICI Securities are the joint Book Running Lead Managers (BRLMs) to the issue while KFin Technologies Limited is the registrar for EPack Durable IPO.
Offer for Sale and IPO Size Breakdown – EPack Durable Limited IPO
The book-built EPACK Durable IPO is priced at Rs 640.05 crores. The issuance consists of a 1.04 crore share offer for sale and a fresh issue of 1.74 crore shares totaling Rs 400.00 crores and Rs 240.05 crores.
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.
IPO Structure and Reservation Criteria –EPack Durable Limited IPO
- EPACK Durable Ltd’s initial public offering (IPO) will consist of both a new issuance and an offer for sale.
- At the upper price range of ₹230 per share, the issue of 1,73,91,304 shares (173.91 lakh shares approximately) constitutes the fresh issue component of EPACK Durable Ltd’s IPO, amounting to a fresh issue size of ₹400 crore.
- TThe sale of 1,04,37,047 shares, or around 104.37 lakh shares, is part of EPACK Durable Ltd’s offer for sale (OFS) portion of its initial public offering (IPO). At the top price range of ₹230 per share, this translates into an offer for sale (OFS) size of ₹240.05 crore.
- Currently, 85.49% of the company is owned by promoters. Five members of the promoter group and four promoters in total will be selling shares in the OFS. Furthermore, shares in the OFS will be made available by two early investors, the Dynamic India Fund and the India Advantage Fund. Following the issue, the promoter ownership will drop to 65.36 percent.
IPO Timelines at a Glance – EPack Durable Limited IPO
|
Event |
Date |
| IPO Opening Date | January 19, 2024 |
| IPO Closing Date | January 23, 2024 |
| IPO Allotment Date | January 24, 2024 |
| Initiation of Refunds | January 25, 2024 |
| Credit of Shares to Demat | January 25, 2024 |
| IPO Listing Date | January 29, 2024 |
Utilization of Fresh Issuance and Technological Advancements – EPack Durable Limited IPO
- The company plans to fund the following with the net proceeds from the fresh issue: 1. Capital expenditures for the establishment or expansion of manufacturing facilities.
- Partial or complete repayment and/or prepayment of some outstanding company loans.
- General corporate purposes.
Conclusion
With its cutting-edge goods, EDL is the second-biggest participant in RAC and ODM. In keeping with the overall trends in the industry, it represented a slight regression following strong expansion from FY21 to FY23. December 2023 saw the opening of its new South unit. To capitalise on the trend resurgence, the company is expanding its capacity at an exponential rate. The IPO looks to be fully priced based on recent financial performance. Investors with knowledge may think about parking money for a medium- to long-term period of time.
Frequently Asked Questions (FAQ) – EPack Durable Limited IPO
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What does EPack Durable Limited Ltd. specialise in?
A well-known brand in the living appliances industry, EPACK Durable specializes in producing a huge variety of small and large home appliances, including water dispensers, room air conditioners, mixer grinders, induction stoves, and components.
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What is the primary purpose of EPack Durable Limited’s IPO?
The company plans to fund the following with the net proceeds from the fresh issue: Capital expenditures for the establishment or expansion of manufacturing facilities; Partial or complete repayment and/or prepayment of some outstanding company loans; General corporate purposes.
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Who are the lead managers for EPack Durable Limited’s IPO?
Axis Capital, DAM Capital Advisors, and ICICI Securities are the joint Book Running Lead Managers (BRLMs) to the issue.
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How is the IPO structured in terms of new issuance and offer for sale (OFS)?
The book-built EPACK Durable IPO is priced at Rs 640.05 crores. The issuance consists of a 1.04 crore share offer for sale and a fresh issue of 1.74 crore shares totaling Rs 400.00 crores and Rs 240.05 crores.
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What is the lot size and minimum investment for retail investors in EPack Durable Limited IPO?
The bid lot size is 65 shares and the maximum lots that can be bought is 13.
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What is the price band for EPack Durable Limited IPO?
The price band for EPack Durable IPO is ₹218 to ₹230 per share.
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How has the Grey Market Premium (GMP) trended for EPack Durable Limited IPO?
The GMP for today is Rs.230.
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When does the IPO open and close for subscription?
The IPO opens on January 19 2024 and closes on January 23 2024.
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When is the allotment date for EPack Durable Limited IPO?
The allotment date is set for January 24 2024.
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When is EPack Durable Limited expected to be listed on the stock exchanges?
The anticipated listing date for EPack Durable Limited IPO is January 29 2024 on the BSE and NSE mainboards.
