EPACK Durable Limited IPO  - Complete Overview

EPACK Durable Limited, formed in 2019, makes cooling machines for rooms called room air conditioners (RAC). They also create parts for these machines and other home gadgets like stoves and blenders. To keep up with different seasons, they've expanded what they make.

They have big factories in Dehradun and Bhiwadi, Rajasthan, where they can make lots of air conditioners, water dispensers, stoves, and blenders every year.

By March 2023, they had 734 full-time workers. They're growing fast and are the second-largest company in India that designs and makes room air conditioners for others to sell.

EPACK Durable started by making parts for other air conditioner brands. Now, they not only make parts but also come up with new designs for air conditioners. They've even started making other home gadgets to balance out when people buy air conditioners.

Products:

• Room Air Conditioners - Window air conditioners (WAC)

• Small Domestic Appliances -  Water Dispensers, Mixer Grinder      

EPACK Durable Limited IPO Overview

EPACK Durable Limited IP date is slated to be open for subscription from January 19, 2024, to January 24, 2024. This BSE, NSE IPO follows a Book Built Issue IPO.

EPACK Durable Limited IPO price is fixed at Rs. 218 - Rs. 230 per share. 

The Total issue size of this IPO amounts to Rs.640.05 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

EPACK Durable Limited IPO timetable (Tentative)

EPACK Durable Limited IPO Details

EPACK Durable Limited IPO Lot Details

EPACK Durable Limited IPO Reservation

Company Financial

In FY23 the company showed Strong growth with total assets at Rs.1,464.16 Cr, revenue Rs.1,540.25 Cr, and PAT Rs.31.97 Cr, outperforming FY22 and FY21.

(Amount in Crore)

Revenue By Operations

FY23: Revenue from operations at Rs.1,538.83 Cr, other operating income Rs.1.42 Cr, totaling Rs.1,540.25 Cr.      

(Amount in Crore)

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Securing funds for the expansion or establishment of manufacturing facilities.

• Repayment or early settlement, either partially or in full, of specific existing company loans.

• Allocation of funds for general corporate purposes.

Promoters and Management of EPACK Durable Limited IPO

1. Bajrang Bothra.

2. Laxmi Pat Bothra.

3. Sanjay Singhania

4. Ajay DD Singhania

EPACK Durable Limited IPO Lead Managers

•  Axis Capital Limited.

•  Dam Capital Advisors Ltd.

• ICICI Securities Limited.

Peers of EPACK Durable Limited IPO

The company stands out with a face value of Rs. 10, P/E ratio of 4.71, and EPS of Rs. 4.71 compared to peers.

Evaluation of P/E Ratio

Evaluation:

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

IPO's Strengths

• A top player in making air conditioners and small appliances.

• Strong in creating new products.

• Makes products from start to finish in one place for better quality and cost.

• Covers everything from making to selling in the air conditioner and small appliance business.

IPO's Weaknesses

• It depends heavily on a few key customers for most of its earnings.

• Seasonal changes and market cycles affect the air conditioner business, causing financial ups and downs.

• Must meet strict technical and quality standards set by customers; failure could result in losing business.
  
  

IPO GMP Today 

The Latest GMP of EPACK Durable Limited IPO is Rs. 5.

Conclusion

In conclusion, EPACK Durable Limited appears to have a strong position in the air conditioner and small appliance manufacturing sector. The financials show positive growth, and the company aims to utilise the IPO proceeds for capital expenditure, loan repayment, and general corporate purposes. However, potential investors should keep an eye on factors like customer dependency and market cyclicality. The IPO details, including opening and closing dates and price, are yet to be finalised, so staying updated on the latest news and reviews is advisable.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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