Epack Durable, India’s second-largest room air conditioner original design manufacturer, has set its initial public offering (IPO) price range at Rs 218 to Rs 230 per share, aiming to raise Rs 640 crore at the higher end of this range. The IPO, scheduled for January 19 to January 23, consists of a fresh issue worth Rs 400 crore and an offer-for-sale (OFS) of 1.04 crore equity shares by current shareholders. The issue’s anchor book will open on January 18.
This IPO is the third of the year, following those of Jyoti CNC Automation and Medi Assist Healthcare Services preceding Nova Agritech’s.
Promoters Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania, Ajay DD Singhania, along with Pinky Ajay Singhania, Preity Singhania, Nikhil Bothra, Nitin Bothra, and Rajjat Kumar Bothra, are selling 51.75 lakh shares for Rs 119 crore in the OFS at the upper price band. Public shareholders India Advantage Fund S4 I and Dynamic India Fund S4 US I will also sell 52.62 lakh shares for Rs 121 crore.
The promoters hold a 65.36 percent stake in the Uttar Pradesh-based company, with the rest held by public shareholders, including India Advantage Fund S4 I and Augusta Investments Zero Pte Ltd. The IPO requires a minimum subscription of 65 equity shares, totaling Rs 14,950 for retail investors.
The IPO allocation includes 50 percent for qualified institutional buyers (QIBs) and 15 percent for non-institutional investors.
Epack Durable, supplying to major firms like Blue Star, Daikin Airconditioning India, Voltas, Havells India, Haier Appliances (India), Bajaj Electricals, BSH Household Appliances Manufacturing, and Usha International, plans to use Rs 230 crore from the IPO for expanding manufacturing facilities and Rs 80 crore for debt repayment. The rest is earmarked for general corporate purposes.
The company reported a strong financial performance in recent years, with a net profit increase of 83.4 percent to Rs 32 crore for the financial year ending March 2022-23. Its revenue grew 66.5 percent to Rs 1,539 crore during the same period. Although EBITDA rose 49 percent to Rs 102.5 crore in the last fiscal year, the operating margin fell by 78 bps to 6.66 percent.