EPACK Durable IPO opened for subscription on Friday, January 19, and will close on Tuesday, January 23. EPACK Durable Limited IPO price band has been set in the range of ₹218 to ₹230 per equity share of the face value of ₹10. EPACK Durable IPO raised ₹192.01 crore from anchor investors on Thursday, January 18, by allotting 83.48 lakh equity shares at ₹230.
EPACK Durable IPO, what is it worth ₹640.05 crores, consists of a fresh number of ₹400 crore, and an offer for sale (OFS) of 1.04 crore equity shares from the promoters and other investors.
Also read: EPACK Durable IPO: Issue subscribed 51% on day 1 so far, retail share sees good demand; GMP is rising
In the OFS, 51.75 lakh shares valued at ₹119 crores, belonging to the promoter group, will be sold by promoters Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania, and Ajay DD Singhania, as well as Pinky Ajay Singhania, Preity Singhania, Nikhil Bothra, Nitin Bothra, and Rajjat Kumar Bothra.
The company plans to use the net proceeds of the new issue to finance the following purposes: financing of capital expenditures for the establishment or expansion of production facilities; repayment and/or prepayment of any outstanding company loans, whether in whole or in part; and overall corporate goals.
Also read: EPACK Durable IPO: Company mobilizes ₹192 crore from marquee investors in anchor round before issue
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According to the F&S Report, the company is the second largest original design room air conditioner manufacturer (ODM) in India by the number of units (indoor + outdoor) manufactured in fiscal 2023 through the ODM route, as stated in the red of the company. herring prospect (RHP).
Also Read: EPACK Durable IPO opens today: GMP, subscription status, review, other details. To buy or not?
The company’s listed peers are Amber Enterprises India Ltd (with a P/E of 66.28), PG Electroplast Limited (with a P/E of 67.27), Dixon Technologies (India) Ltd (with a P/E of 139.96), and Elin. Electronics Ltd (with a P/E of 24.28), according to RHP.
Here are some of the main risks listed by the company in its RHP:
- Because a significant portion of the company’s revenue comes from a small number of key customers, the business, operating results, financial condition and cash flows could all suffer due to the loss of one or more of these customers.
- The customers do not sign long-term contracts with the company and are free to modify or stop their supply needs at any time. The company’s cash flows, operating results and financial condition could all be adversely affected by such cancellations or modifications.
- The company’s three production facilities are essential to the business, and they face specific risks associated with the production process. The business, financial condition and operating results of the corporation may suffer from any stoppage or slowdown in its production activities.
- The company is in a competitive industry, and its inability to compete successfully could have an adverse effect on its operations, financial condition, cash flows and overall business performance.
- The company needs a lot of fuel, water and power, so any interruption of these resources could raise the cost of production and have a negative impact on business operations.
- Compliance expenses can rise for the company due to labor, environmental, health and safety requirements. The company’s operations, financial condition and business results may all suffer if it does not obtain, maintain or renew the licenses, permits and permits necessary to operate the business and does not comply with the law.
- A memorandum of understanding between the company and East India Technologies Private Limited provides for the separation of business activities that may have an adverse impact on the operations and business.
- The company’s profitability, gross margin and ability to raise prices could all be adversely affected by pricing pressure from consumers.
- Restrictions on the import of raw materials, such as those related to imports from China, could have a negative impact on operations and corporate performance.
- The business, operating performance, cash flows and financial condition could be affected by any reduction or termination of the tax benefits that the company receives or by changes to other beneficial government policies.
Also read: EPACK Durable IPO opens today: From price band to key dates – here are the top 10 things to know
Disclaimer: The above views and recommendations are those of individual analysts, experts and trading companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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Published: 19 Jan 2024, 15:54 IST