Epack Durables is coming up with an IPO with a fresh issue of INR 400 crore and an offer to sell 1.3 crore existing shares. The company plans to expand, manufacture, repay loans, general corporate needs, fund capital, repay and prepay loans, and support corporate purposes.
Epack Durables IPO – Important Details
| Epack Durables Limited IPO Date | January 19, 2024 to January 24, 2024 |
| Epack Durables Limited IPO Listing Date | January 30, 2024 |
| Epack Durables Limited IPO Price | INR 218 to 230 per share |
| Epack Durables Limited IPO Lot Size | 65 Shares |
| Epack Durables Limited IPO Total Issue Size | ₹640.05 Cr |
| Epack Durables Limited IPO Basis of Allotment | January 25, 2024 |
| Epack Durables Limited IPO Initiation of Refunds | January 29, 2024 |
| Epack Durables Limited IPO Credit of Shares to Demat | January 29, 2024 |
| Epack Durables Limited IPO Issue Type | Book Built Issue IPO |
| Epack Durables Limited IPO Listing At | BSE, NSE |
Epack Durables Limited IPO – Company Profile
Epack Durables is the fastest-growing room air conditioner original design manufacturer (“ODM”) based on volume growth manufactured in India. It is the second-largest ODM manufacturer in the Indian market, with a 29% market share in the air conditioner manufacturing industry in Fiscal 2023.
They are a customer-centric business driven by a focus on continuing innovation and operational efficiency. They have been on a journey of evolution, where they initially started as an OEM for RAC brands. Driven by their focus on product development and innovation, they evolved into an ODM partner for RACs for their customers.
The company strategically increased value addition by manufacturing components like sheet metal, injection-molded, cross-flow fans, and PCBA for RACs. Leveraging existing infrastructure, they expanded into the small domestic appliances market, producing induction cooktops, mixer grinders, and water dispensers to address seasonality in RAC demand.
Epack Durable Ltd IPO – Fundamental Analysis
Epack Durables Limited shows strong revenue growth, rising equity, and profit but declining RoNW and fluctuating ratios. Further analysis is advised before considering an investment in IPO.
Revenue Growth:
The company has experienced substantial revenue growth over the past three years, indicating a positive trend in sales.
Equity:
There has been a significant increase in equity from 2021 to 2023, suggesting that the company is raising more capital, likely for expansion or investment opportunities.
Expenses:
Expenses have also increased in line with revenue, but it’s crucial to monitor if the expense growth rate remains sustainable and in control.
Profit After Tax:
The profit after tax has shown a consistent increase year on year, which is a positive sign for potential investors.
Return on Net Worth (RoNW):
Although there was an increase from 2021 to 2022, the RoNW declined in 2023, indicating a decrease in profitability in relation to the net worth. This could be a concern and requires further investigation.
Earnings Per Share (EPS):
The diluted EPS has shown an upward trend, indicating the company’s ability to generate profits on a per-share basis. However, the growth rate seems to have slowed down in 2023 compared to the previous year.
Net Asset Value (NAV) per Equity Share:
The NAV per share has been consistently increasing, which indicates an increase in the company’s underlying assets per share.
Debt to Equity Ratio:
The company has been reducing its debt-to-equity ratio, which is a positive sign as it indicates lesser reliance on borrowed funds.
Current Ratio:
The current ratio has remained relatively stable over the years, indicating the company’s ability to meet its short-term liabilities.
Inventory Turnover Ratio:
There has been fluctuation in the inventory turnover ratio, which may require further analysis to understand the reasons behind the changes.
Gross Profit Margin:
There has been an improvement in gross profit margin from 2021 to 2022, but a slight decrease in 2023. This might need closer scrutiny to understand the underlying reasons.
Epack Durables Limited IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue(₹in millions) | 7,362.45 | 9,241.62 | 15,388.32 |
| Equity(₹ in millions) | 689.13 | 1,218.65 | 3,136.18 |
| Expenses (₹in millions) | 7,287.81 | 9,010.39 | 14,938.44 |
| Profit and Loss After Tax (₹ in millions) | 78.03 | 174.34 | 319.72 |
| RoNW (%) | 12.00 | 18.28 | 14.68 |
| Diluted EPS only (₹) | 1.62 | 3.47 | 4.64 |
| NAV per Equity Share (₹) | 14.31 | 24.25 | 46.21 |
| Total Assets (in millions) | 5,203.65 | 10,766.75 | 14,641.55 |
| Total Liabilities (in millions) | 4,514.52 | 9,548.10 | 11,505.37 |
| Debt to Equity Ratio | 3.47 times | 3.15 times | 1.58 times |
| Current Ratio | 1.12 | 1.05 | 1.05 |
| Inventory Turnover Ratio | 4.71 times | 2.86 times | 4.64 times |
| Gross Profit Margin (%) | 11.84 | 14.05 | 13.96 |
Epack Durable Ltd IPO Peer Comparison
Epack Durable Ltd’s IPO stands out with revenue of ₹15,388.32 million, RoNW of 14.68%, and EPS of ₹4.71. Compared to peers like Amber Enterprises, Dixon Technologies, and PG Electroplast, it exhibits favorable financial metrics in revenue and RoNW.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| EPACK Durable Limited | 15,388.32 | 10 | NA | 4.71 | 4.64 | 14.68 | 46.21 |
| Amber Enterprises India Ltd | 69,270.95 | 10 | 52.55 | 46.66 | 46.66 | 8.79 | 579.94 |
| PG Electroplast Limited | 21,599.48 | 10 | 43.51 | 35.78 | 33.77 | 21.88 | 174.09 |
| Dixon Technologies (India) Ltd | 121,920.1 | 2 | 95.04 | 42.92 | 42.62 | 22.36 | 215.69 |
| Elin Electronics Ltd | 10,754.28 | 5 | 23.25 | 6.29 | 6.29 | 6.73 | 99.30 |
Epack Durables Limited IPO Objective
Epack Durables Limited intends to fund new manufacturing facilities in Bhiwadi, Rajasthan, and Sri City, Andhra Pradesh, with project costs of INR 142.525 crores and INR 106.259 crores, respectively, funded by Net Proceeds and internal accruals. Furthermore, funds will be allocated for loan repayment and general corporate purposes, encompassing business growth and operational expenses.
1. Funding capital expenditure for expanding and setting up manufacturing facilities: The company intends to set up a new manufacturing facility in Bhiwadi, Rajasthan. The project cost is INR 142.525 crores, funded by Net Proceeds and internal accruals.
The company intends to set up a new manufacturing facility in Sri City, Andhra Pradesh: The proposed manufacturing facility in Sri City, Andhra Pradesh, on a 99-year lease, aims to serve the southern Indian market and facilitate global exports. The estimated project cost is INR 106.259 crores, funded by Net Proceeds and internal accruals.
2. Repayment of the borrowings: The company plans to utilize INR 80 crores from the Net Proceeds to partially or fully repay outstanding loans, reducing indebtedness, which includes covering interest, prepayment penalties, and associated costs directly from the Net Proceeds.
Epack Durable Ltd IPO Risks And Challenges
Epack Durable Limited relies heavily on its top five customers for 82% of revenue, facing challenges in a B2B model with unpredictable demand and price pressures. Efficient cost spreading and regulatory compliance are crucial for sustained profitability and reputation.
- Almost 82% of the revenue of the company is generated from the top five customers and the loss of such important customers will affect the financial health of the company.
- Following a B2B model, the company faces challenges due to unpredictable customer demand, potential cancellations, and fluctuations. The absence of long-term commitments, competition, and margin variability requires agile adaptation to market dynamics for sustained growth.
- Customers may seek price reductions, impacting product margins. The capital-intensive nature of the business relies on spreading fixed production costs over higher volume, and failure to do so efficiently or a decrease in demand could adversely affect profitability and overall prospects.
- Failure to meet regulatory and customer quality standards may result in product recalls or liability claims, impacting business, finances, and reputation. Warranty obligations, potential recall costs, and the risk of future product failures pose significant challenges to operations and financial performance.
Epack Durables IPO – Industry & Market Potential
India’s consumer durables market has grown substantially in the last five years, with expectations of further acceleration. Factors such as increased rural consumption, a shorter replacement cycle, enhanced retail penetration, and various brands and products contribute to this anticipated growth. The developing economy, higher consumer spending power, and improved access to reasonably priced quality items have positively transformed the market.
The Indian consumer electronics market presents growth opportunities, with Room Air Conditioners at 8% penetration, Television at 65%, Refrigerators at 33%, and Washing Machines experiencing sustained growth driven by innovation, affordability, and evolving consumer preferences.
India’s consumer durables market benefits from increasing household income, rising temperatures, regulatory reforms, and a focus on low-cost production. The shift to nuclear households, market trends like intelligent appliances, and supply chain localization further drive industry growth and competitiveness.
Epack Durable Ltd IPO – Type of Offer
Epack Durables Limited plans a fresh issue to raise INR 400 crores, intending to invest in its subsidiary, expand the plant, and meet working capital needs. Epack Durable offers 1.3 crore existing shares for sale.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 400 crores. The company intends to utilize the proceeds from the fresh issue to invest in its subsidiary, expand the existing company plant, and meet future working capital requirements.
- Offer for sale: Epack Durable is offering to sell 1.3 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale |
| Bajrang Bothra | 1,172,976 |
| Laxmi Pat Bothra | 666,798 |
| Sanjay Singhania | 748,721 |
Epack Durables IPO Offer Size
Epack Durables is launching an IPO involving a fresh issue of INR 400 crores and selling 1.3 crore shares. The company will allocate the funds to expand, manufacture, repay loans, general corporate needs, fund capital, repay and prepay loans, and support corporate purposes.
Epack Durables IPO Allotment Structure
Epack Durables’ allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) by SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs
How to apply for an Epack Durable Ltd IPO?
To apply for the Epack Durables Limited IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Epack Durables Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Epack Durables Limited’s IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Epack Durables Limited IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Epack Durables Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Epack Durables Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Epack Durables Limited IPO:
Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Epack Durables Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Epack Durables Limited IPO Offer Registrar
The registrar for the Epack Durables Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
Selenium, Tower B, Plot No –31 and 32
Gachibowli, Financial District
Nanakramguda, Serilingampally
Hyderabad, 500 032
Telangana, India
Telephone: + 91 40 6716 2222/ 18003094001
Email: [email protected]
Website: www.kfintech.com
Epack Durables Limited IPO FAQs
1. What is the allotment date of the Epack Durables Limited IPO?
The allotment date of Epack Durables Limited IPO is January 24, 2024 .
2. What is the price band of the Epack Durables Limited IPO?
The price band of the Epack Durables Limited IPO is INR 218 to 230 per share.
3. What is the size of the Epack Durables Limited IPO?
Epack Durables Limited is launching an IPO involving a fresh issue of INR 400 crores and the sale of 1.3 crore shares. The company will allocate the funds to expand, manufacture, repay loans, general corporate needs, fund capital, repay and prepay loans, and support corporate purposes.
4. What is the listing date of the Epack Durables Limited IPO?
The listing date of the Epack Durables Limited IPO is January 29, 2024.
