Within minutes of the issue opening on the second day, EPACK Durable IPO was fully booked. All tranches were oversubscribed, with the exception of qualified institutional buyers (QIB). The EPACK Durable IPO subscription status was 77% at the end of day 1.
Also Read: EPACK Durable IPO fully booked on day 2 on strong retail, NII interest; GMP constant
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The EPACK Durable IPO lot size is 65 equity shares and in multiples of 65 equity shares thereafter. EPACK Durable IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.
Also Read: EPACK Durable IPO subscription extended. GMP, review, apply or not?
EPACK Durable IPO basis of allotment of shares will be finalized on Thursday, January 25, and the company will initiate refunds on Monday, January 29, while the shares will be credited to the demat account of allottees on the same day after refund EPACK Durable share price is likely to be listed on BSE and NSE on Tuesday, January 30.
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.
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.
The book-keeping leads of EPACK Durable IPO are Axis Capital Limited, DAM Capital Advisors Limited, and ICICI Securities Limited, while the registrar is KFin Technologies Limited.
Here are 10 key things from the Red Herring Prospectus (RHP) that investors may want to know before subscribing to the issue.
Also read: EPACK Durable IPO: Issue subscribed 77% on day 1, retail portion fully reserved; GMP is rising
EPACK Durable IPO Promoters
The promoters of the company are Sanjay Singhania, Ajay DD Singhania, Laxmi Pat Bothra, and Bajrang Bothra.
In total, Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania, and Ajay DD Singhania held 33,637,595 Equity shares as of the January 12 RHP date, which accounts for 42.90% of the issued, subscribed, and paid-up share capital of the company
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.
EPACK IPO fellows
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.
Also read: EPACK Durable IPO opens today: From price band to key dates – here are the top 10 things to know
EPACK Continuing business
According to the F&S Report, the company is the second largest original design manufacturer (ODM) of room air conditioners in India based on the number of units (indoor + outdoor) produced through the ODM method in Fiscal 2023.
The business is a customer-focused organization that places a high value on continuous innovation and efficiency in operations. The company began its path of growth in 2003, when it was founded as an OEM for RAC brands. With an emphasis on innovation and product development, the business has evolved into an ODM partner for RACs for its customers.
EPACK Continuous industry
At a CAGR of 10.1%, the size of the Indian consumer electronics market has increased from Fiscal 2018 to Fiscal 2023. Within the consumer electronics market, the company operates in the room air conditioner (RAC) and small home appliances (SDA) industries. According to the F&S Report, the consumer durables market is expected to reach an estimated total value of ₹1,303 billion by Fiscal 2023 and increase at a compound annual growth rate of 13.7% until Fiscal 2028.
Key market trends of consumer durables industry in India
- Growing Adoption of Smart Home Devices
- Increase in Online Sales
- Focus on After-sales Service and Customer Support
- Growing Interest in Health and Wellness Devices
- Increasing financing options and no-cost EMI schemes
EPACK Ongoing key customers
In the room air conditioners segment, they key clients list includes, Blue Star Limited, Daikin Airconditioning India Private Limited, Carrier Midea India Private Limited, Voltas Limited, Havells India Limited, Haier Appliances (India) Private Limited, Infiniti Retail Limited, and Godrej and Boyce Manufacturing Company Limited, among others.
Under the small home appliances segment, Bajaj Electricals Limited, BSH Household Appliances Manufacturing Private Limited, and Usha International Limited, among others are the major customers.
EPACK Continued IPO key risks
Some of the key risks are as follows;
- 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.
Also Read: EPACK Durable IPO opens today: 10 key RHP risks to consider before subscribing to the IPO
EPACK Continuing funds
During the FY21-23 period, the business’s revenue, EBITDA, and PAT increased at a CAGR of 44.6%, 56.2%, and 102.5%, respectively.
The company registered ₹615 crore in revenue and ₹2.6 crore in net profit for the six months ended September 2023. The company’s revenue from operations in FY23 increased 66% year-on-year to ₹1,539 crore, while its profit increased 88% to ₹32 crores.
Locking in equity shares allotted to anchor investors
50% of the equity shares allotted to anchor investors under the anchor investor portion will be locked up for a period of 90 days from the date of allotment and the remaining 50% will be locked up for a period of 30 days from the date of grant, the company said.
R&D centers and manufacturing facility
The company has four manufacturing facilities in Dehradun, two more facilities which are the Bhiwadi manufacturing facility and the Sri City Manufacturing Facility, and specialized R&D centers in Greater Noida, Bhiwadi, and Dehradun.
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: 23 Jan 2024, 13:19 IST