Through the issue, the company plans to raise about Rs 640 crore.
The IPO comprises a fresh equity issue of up to Rs 400 crore and an offer for sale (OFS) of up to 10,437,047 shares by selling shareholders.
Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania, Ajay DD Singhania, Pinky Ajay Singhania, Preity Singhania, Nikhil Bothra, Nitin Bothra, and Rajjat Kumar Bothra are the promoter and group entities selling part of their stake in the company.
The company has fixed a price band of Rs 218-230 per share and investors can bid for 65 shares in one lot.
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About 50% of the offer is reserved for qualified institutional buyers (QIB), 35% of the issue is set aside for retail investors and 15% for non-institutional investors.Epack Durables is the second-largest room air conditioner original design manufacturer (ODM) in India in terms of number of units, specializing in room air conditioners (RAC) and related components. The company has 3 manufacturing facilities in Dehradun, Bhiwadi, and Sricity.
The company has a 24% market share in terms of domestically manufactured units by ODM in FY23. The plants are vertically integrated and automated would improve the margins going forward.
Analysts expect the IPO proceeds that would be used for capacity expansion would lead to incremental business going forward.
For the six months ended September 2023, the company reported revenue of Rs 615 crore, while net profit stood at Rs 2.6 crore. In FY23, the company’s revenue from operations rose 66% year-on-year to Rs 1,539 crore and profit jumped 88% to Rs 32 crore.
Axis Capital, DAM Capital Advisors, and ICICI Securities are the book-running lead managers to the issue.
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