EPACK Durable Limited IPO

The lucrative market of durable packaging solutions should closely monitor the EPACK Durable IPO, set to open for subscription on January 19, 2024. The book built issue amounts to a substantial Rs. 640.05 crores, featuring a fresh issue of 1.74 crore shares at Rs. 400.00 crores and an offer for sale of 1.04 crore shares at Rs 240.05 crores.

The IPO’s price band is enticingly set between Rs. 218 to Rs. 230 per share, making it an accessible investment. The minimum lot size is 65 shares, with a retail investor requiring a modest Rs. 14,950 for entry. However, sophisticated investors may consider larger lots, with a minimum investment of Rs. 209,300 for sNII (14 lots) and Rs. 1,001,650 for bNII (67 lots).

Book running lead managers Axis Capital Limited, Dam Capital Advisors Ltd, and ICICI Securities Limited steer the IPO process, while Kfin Technologies Limited takes on the role of registrar.

Investors eyeing the listing date, tentatively scheduled for January 29, 2024, anticipate fruitful returns from EPACK Durable IPO. For comprehensive details, interested parties are encouraged to refer to the IPO’s RHP (Red Herring Prospectus). Seize the opportunity to participate in EPACK Durable IPO and secure your stake in the dynamic packaging industry.

EPACK Durable IPO Investment Landscape

EPACK Durable IPO is set to captivate investors from January 19 to January 23, 2024, offering a promising venture in the dynamic realm of durable packaging solutions. Priced in the range of Rs. 218 to Rs. 230 per share, the IPO has a face value of Rs.10 per share, making it an appealing investment for a diverse set of stakeholders.

With a lot size of 65 shares, the IPO presents an accessible entry point for retail investors, requiring a minimum investment of Rs. 14,950. The total issue size comprises an impressive 27,828,351 shares, aggregating up to Rs. 640.05 Crores. This encompasses a fresh issue of 17,391,304 shares, amounting to Rs. 400.00 Crores, and an offer for sale of 10,437,047 shares, totaling Rs. 240.05 Crores.

Structured as a Book Built Issue IPO, EPACK Durable is poised to list on both BSE and NSE, further expanding its market reach. The pre-issue shareholding stands at 78,407,387, with a post-issue scenario projecting an increase to 95,798,691 shares.

As investors eagerly await the listing, scheduled for January 29, 2024, EPACK Durable IPO stands as a beacon of opportunity, beckoning those seeking a strategic entry into the flourishing world of packaging solutions.

IPO Date	January 19, 2024 to January 23, 2024
Face Value	₹10 per share
Price Band	₹218 to ₹230 per share
Lot Size	65 Shares
Total Issue Size	27,828,351 shares (aggregating up to ₹640.05 Cr)
Fresh Issue	17,391,304 shares (aggregating up to ₹400.00 Cr)
Offer for Sale	10,437,047 shares of ₹10 (aggregating up to ₹240.05 Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Share holding pre issue	78,407,387
Share holding post issue	95,798,691

EPACK Durable IPO Reservation

EPACK Durable IPO is committed to fostering an inclusive investment environment by allocating shares across different investor categories. The reservation details are strategically designed to accommodate a diverse range of participants:

QIB Shares Offered: To ensure a balanced distribution, not more than 50.00% of the net offer is earmarked for Qualified Institutional Buyers (QIBs), catering to the institutional investor segment.

Retail Shares Offered: A significant portion, not less than 35.00% of the total offer, is dedicated to retail investors. This initiative promotes wider participation, allowing individual investors to seize the opportunity presented by EPACK Durable IPO.

NII (HNI) Shares Offered: High Net Worth Individuals (HNIs) fall under the Non-Institutional Investors (NIIs) category, with a reserved share offering of not less than 15.00% of the total offer. This strategic allocation acknowledges the distinct needs and preferences of this investor segment.

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50.00% of the Net offer
Retail Shares Offered	Not less than 35.00% of the Offer
NII (HNI) Shares Offered	Not less than 15.00% of the Offer

EPACK Durable IPO  Grey Market Premium (GMP)

As of January 18th, 2024, the Grey Market Premium (GMP) for EPACK Durable IPO stands at Rs. 31, reflecting positive market sentiment. The GMP is a key indicator of investor expectations and the perceived value of the IPO shares in the unofficial market.

With a price band of Rs. 230.00, the estimated listing price is projected at Rs. 261 (cap price + today’s GMP). This suggests an expected percentage gain/loss per share of 13.48%, indicating a favorable outlook for potential investors.

Additionally, specific retail and Small High Net Worth Individual (HNI) subject to Sauda prices are provided, with Rs. 1500 for Retail and Rs. 21000 for Small HNI. These figures offer insights into the demand dynamics within different investor segments.

The daily monitoring of GMP points towards an upward trend, instilling confidence in a robust listing for EPACK Durable IPO. Investors are advised to stay updated for the daily price trend and additional market insights as the IPO journey progresses.

EPACK Durable Day-wise IPO GMP Trend

GMP Date	IPO Price	GMP	Sub2 Sauda Rate	Estimated Listing Price	Last Updated
18-01-2024	230.00	₹31 Up	1500/21000	₹261 (13.48%)	18-Jan-2024 19:24
17-01-2024	230.00	₹15 Up	700/9800	₹245 (6.52%)	17-Jan-2024 23:23
16-01-2024	230.00	₹0 No change	—	₹230 (0%)	16-Jan-2024 23:25
15-01-2024		₹0 No change	—	₹ (0%)	15-Jan-2024 6:03
14-01-2024		₹0 No change	—	₹ (0%)	14-Jan-2024 6:03
13-01-2024		₹0 No change	—	₹ (0%)	13-Jan-2024 6:03

EPACK Durable IPO Marking Key Milestones Financial Calendar

EPACK Durable IPO, a carefully outlined timeline ensures a seamless process from subscription to listing. Here’s a concise overview of the tentative schedule:

IPO Opening: The subscription period for EPACK Durable IPO kicks off on Friday, January 19, 2024.

IPO Closing: Investors have until Tuesday, January 23, 2024, to participate in the IPO, with the cut-off time for UPI mandate confirmation set at 5 PM on the same day.

Basis of Allotment: On Wednesday, January 24, 2024, the basis of allotment, a crucial step in the IPO process, will be determined.

Refund Initiation: The initiation of refunds is scheduled for Thursday, January 25, 2024, offering a swift resolution for any necessary transactions.

Demat Credit: Simultaneously on Thursday, January 25, 2024, successful applicants can anticipate the credit of shares to their Demat accounts, marking the formal ownership transfer.

Listing Day: The much-anticipated listing of EPACK Durable IPO on BSE and NSE is set for Monday, January 29, 2024, signifying the commencement of public trading.

IPO Open Date	Friday, January 19, 2024
IPO Close Date	Tuesday, January 23, 2024
Basis of Allotment	Wednesday, January 24, 2024
Initiation of Refunds	Thursday, January 25, 2024
Credit of Shares to Demat	Thursday, January 25, 2024
Listing Date	Monday, January 29, 2024
Cut-off time for UPI mandate confirmation	5 PM on January 23, 2024

EPACK Durable IPO Lot Size

EPACK Durable IPO offers investors flexibility with a customizable lot size, allowing participation in multiples of 65 shares. The table below delineates the range of investment options for both retail and High Net Worth Individual (HNI) investors:

Application	Lots	Shares	Amount
Retail (Min)	1	65	₹14,950
Retail (Max)	13	845	₹194,350
S-HNI (Min)	14	910	₹209,300
S-HNI (Max)	66	4,290	₹986,700
B-HNI (Min)	67	4,355	₹1,001,650

Retail investors can initiate their stake with a minimum investment of 65 shares, amounting to Rs. 14,950, and may choose to expand their portfolio up to 13 lots. High Net Worth Individuals (HNIs) are presented with a broader spectrum, with a minimum investment of 14 lots (910 shares) at Rs. 209,300, scaling up to 66 lots (4,290 shares) with a maximum investment of Rs. 986,700. For those seeking a more substantial stake, B-HNIs have the option to invest a minimum of 67 lots (4,355 shares) at Rs. 1,001,650.

EPACK Durable IPO Promoter Holding

EPACK Durable gears up for its IPO, the shift in promoter holding reflects a strategic evolution in the company’s ownership structure. The promoters, including Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania, and Ajay DD Singhania, have played pivotal roles in shaping the company’s trajectory.

Share Holding Pre Issue: Before the IPO launch, the promoters collectively held a substantial 85.49% stake in EPACK Durable, underscoring their commitment and belief in the company’s growth potential.

Share Holding Post Issue: In alignment with the IPO process, the promoter holding is set to undergo a transformation, reducing to 65.36% post the public offering. This shift not only reflects the infusion of public capital but also indicates a strategic move towards broader ownership and market participation.

Share Holding Pre Issue	85.49%
Share Holding Post Issue	65.36%

Overview EPACK Durable Limited

Founded in 2019, EPACK Durable Limited has swiftly emerged as a key player in the realm of Original Design Manufacturing (ODM) for room air conditioners (RAC). The company’s commitment to innovation and quality is evident in its diverse product portfolio, which includes not only RACs but also critical components like sheet metal parts, injection molded parts, cross-flow fans, and PCBA components integral to RAC production.

Expanding its horizons to meet evolving market demands, EPACK Durable Limited has ventured into the small domestic appliance (SDA) market. Recognizing the seasonal nature of RAC demand, the company is actively involved in the development and production of induction hobs, blenders, and water dispensers.

Strategically located, the company operates four production facilities in Dehradun (Unit I, Unit II, Unit III, and Unit IV) and one manufacturing facility in Bhiwadi, Rajasthan. As of March 31, 2023, EPACK Durable Limited boasts an impressive annual production capacity, including 0.90 million IDUs, 0.66 million ODUs, 0.36 million ODU kits, 0.42 million WACs, 0.11 million water dispensers, 1.2 million induction hobs, and 0.30 million mixers and their components.

With a dedicated workforce of 734 full-time employees, comprising engineers, university graduates, and diploma students, EPACK Durable Limited stands poised to continue its trajectory of success, meeting the evolving needs of the market with innovation, precision, and a commitment to excellence.

EPACK Durable Limited Financial Information Restated

EPACK Durable Limited has showcased a commendable financial performance, marked by substantial growth in key metrics, reinforcing its position in the market. A comparative analysis of the financial years ending on March 31, 2023, and March 31, 2022, reveals remarkable improvements:

Revenue Surge: The company’s revenue witnessed a significant upswing of 66.09%, soaring from Rs. 927.34 Crores in the financial year ending March 31, 2022, to Rs. 1,540.25 Crores by March 31, 2023. This impressive growth underscores EPACK Durable Limited’s adeptness in capitalizing on market opportunities.

Profit After Tax (PAT) Uplift: The Profit After Tax surged by an even more impressive 83.39%, escalating from Rs. 17.43 Crores in March 2022 to Rs. 31.97 Crores by March 31, 2023. This remarkable increase reflects not only robust operational efficiency but also strategic financial management.

The financial position as of September 30, 2023, further solidifies EPACK Durable Limited’s stability and growth trajectory:

Total Assets: The company’s total assets have risen to Rs. 1,071.45 Crores, signifying a steady increase from the previous financial year.

Net Worth: EPACK Durable Limited’s net worth has shown remarkable growth, reaching Rs. 478.31 Crores by September 30, 2023, reinforcing investor confidence.

Total Borrowing: With a total borrowing of Rs. 369.57 Crores, the company maintains a balanced financial structure, strategically leveraging resources for sustained growth.

Period Ended	30 Sep 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	1,071.45	1,464.16	1,076.68	520.37
Revenue	616.32	1,540.25	927.34	739.66
Profit After Tax	2.65	31.97	17.43	7.80
Net Worth	478.31	313.62	121.87	68.91
Total Borrowing	369.57	492.45	383.98	238.56

Key Performance Indicator

EPACK Durable IPO, key performance indicators (KPIs) provide crucial insights into the company’s financial health and potential for returns. Here’s a snapshot of the KPIs:

Market Capitalization: EPACK Durable IPO commands a market capitalization of Rs. 2203.37 Crores, a reflection of the market’s valuation of the company.

Return on Equity (ROE): The Return on Equity stands at a commendable 14.68%, indicating efficient utilization of shareholders’ equity to generate profits.

Return on Capital Employed (ROCE): EPACK Durable IPO demonstrates a Return on Capital Employed of 11.85%, showcasing effective utilization of both equity and debt capital to generate returns.

Debt/Equity Ratio: With a Debt/Equity ratio of 1.58, EPACK Durable IPO maintains a balanced financial structure, leveraging debt prudently.

Return on Net Worth (RoNW): The Return on Net Worth aligns with ROE at 14.68%, reinforcing the company’s ability to generate profits relative to its net worth.

Price-to-Book Value (P/BV): The P/BV ratio stands at 4.98, signifying the market’s valuation of the company relative to its book value.

These KPIs collectively paint a positive picture of EPACK Durable IPO’s financial performance, with strong returns, prudent financial management, and market confidence reflected in its valuation metrics. Investors are encouraged to consider these KPIs alongside other factors when making informed investment decisions in the IPO.

KPI	Values
ROE	14.68%
ROCE	11.85%
Debt/Equity	1.58
RoNW	14.68%
P/BV	4.98

EPACK Durable IPO Clear Objectives for Net Proceeds

EPACK Durable IPO outlines specific and strategic objectives for the utilization of net proceeds from the Fresh Issue. The funds raised will be allocated towards achieving the following key objectives:

Funding Capital Expenditure: EPACK Durable intends to channel a portion of the net proceeds into funding capital expenditure associated with the expansion or establishment of manufacturing facilities. This move aligns with the company’s growth strategy, ensuring enhanced production capabilities and market presence.

Repayment of Outstanding Loans: Another crucial aspect of the fund allocation involves the repayment and/or prepayment, either partially or in full, of certain outstanding loans held by the company. This strategic debt management approach aims to strengthen the company’s financial position and reduce financial obligations.

General Corporate Purposes: The company acknowledges the importance of flexibility in its financial strategy. Hence, a portion of the net proceeds will be allocated for general corporate purposes, providing EPACK Durable with the necessary financial agility to respond to emerging opportunities and navigate market dynamics.

By delineating these clear objectives for the utilization of funds, EPACK Durable IPO demonstrates a prudent and focused approach to capital allocation. Investors are presented with a transparent understanding of how their contributions will be instrumental in supporting the company’s expansion, debt management, and overall corporate objectives.