EPACK Durable IPO: Check out Issue Size, Reserve Portion & More
by Sandip Das on 19 January 2024, 5 min read
The initial public offering (IPO) of EPACK Durable, an air conditioner manufacturer, opened for subscription on January 19, 2024, and is set to close on January 23, 2024. The price band for the IPO is set between Rs 218 to Rs 230 per equity share, with each share having a face value of Rs 10. The total issue amounts to Rs 640.05 crore and is structured as a book-built issue. It comprises a fresh issue of 1.74 crore shares, aggregating to Rs 400 crore, and an offer for sale (OFS) of 1.04 crore shares, which aggregates to Rs 240.05 crore.
About the company
EPACK Durable, established in 2019, operates as an original design manufacturer (ODM) of room air conditioners (RAC). In addition to producing RACs, the company manufactures various components actively used in RAC production, including sheet metal parts, injection molded parts, cross-flow fans, and PCBA components.
EPACK Durable IPO price band is set between Rs 218 to Rs 230 per equity share of a face value of Rs 10 each.
The total issue amounts to Rs 640.05 crore and is structured as a book-built issue. It comprises a fresh issue of 1.74 crore shares, aggregating to Rs 400 crore. It has an offer for sale (OFS) of 1.04 crore shares, which aggregates to Rs 240.05 crore.
In FY23, the net profit of the company experienced a substantial year-on-year growth of 83.4 percent, reaching Rs 32 crore. During the same period, revenue from operations saw a notable increase of 66.5 percent, reaching Rs 1,539 crore. The EBITDA (earnings before interest, tax, depreciation, and amortization) for FY23 stood at Rs 102.5 crore. It reflects a 49 percent increase compared to FY22. However, the margin decreased by 78 basis points to 6.66 percent during the same period. The top line for H1FY24 amounted to Rs 616.32 crore.
IPO Reserve Portion
Qualified Institutional Buyers (QIB): Not more than 50 percent of the shares in the public issue
Non-institutional Institutional Investors (NII): Not less than 15 percent
Retail Investors: Not less than 35 percent of the offer
Objectives of the Issue
The company intends to allocate the net proceeds from the new issue towards several key objectives: financing capital expenditures for setting up new manufacturing facilities or expanding existing ones; repaying and/or prepaying a portion or all of its outstanding loans; and for general corporate purposes.
Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions. Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
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