The IPO opens on January 19 and closes on January 23
Journey of 47 years of Bothra and Singhania families takes an important business turn – both are equal equity partners
EPACK Durable IPO is a main-board IPO of 27,828,351 equity shares of the face value of ₹10 aggregating up to ₹640.05 Crores. The issue is priced at ₹218 to ₹230 per share. The minimum order quantity is 65 Shares
Ahmedabad, Jan 17: EPACK Durable Ltd. has announced to open its initial public offer (IPO) of equity shares on Friday, January 19, 2024. The IPO comprises of fresh issue aggregating up to ₹400 crore and offer for sale of up to 10,437,047 equity shares. The issue will close on Tuesday, January 23, 2024.
The IPO comprises a fresh equity issue of up to Rs 400 crore and an offer for sale of up to 10,437,047 shares by selling shareholders.
The IPO of EPACK Durable Ltd will be a combination of a fresh issue and an offer for sale. As you would be aware, a fresh issue tends to bring in fresh funds into the company, but is also EPS and equity dilutive. On the other hand, OFS is just a transfer of ownership and does not entail dilution of equity or of EPS.
Promoters currently hold 85.49% in the company. Out of the promoters, a total of 4 promoters and 5 members of the promoter group will be offering shares in the OFS. In addition, 2 early investors (India Advantage Fund and Dynamic India Fund) will also be offering shares in the OFS. The promoter stake, post the issue will stand reduced to 65.36%.
The overall IPO of EPACK Durable Ltd will be a combination of a fresh issue and an offer for sale. The overall issue will, therefore, comprise of the fresh issue and sale of 2,78,28,351 shares (278.28 lakh shares approximately), which at the upper price band of ₹230 per share translates into total IPO size of ₹640.05 crore.
The IPO of EPACK Durable Ltd will be listed on the NSE and the BSE on the IPO mainboard.
EPACK Durable IPO opens for subscription on January 19, 2024 and closes on January 23, 2024. The allotment for the EPACK Durable IPO is expected to be finalized on Wednesday, January 24, 2024. EPACK Durable IPO will list on BSE, NSE with tentative listing date fixed as Monday, January 29, 2024.
EPACK Durable IPO price band is set at ₹218 to ₹230 per share. The minimum lot size for an application is 65 Shares. The minimum amount of investment required by retail investors is ₹14,950. The minimum lot size investment for sNII is 14 lots (910 shares), amounting to ₹209,300, and for bNII, it is 67 lots (4,355 shares), amounting to ₹1,001,650.
Axis Capital Limited, Dam Capital Advisors Ltd (formerly IDFC Securities Ltd) and ICICI Securities Limited are the book running lead managers of the EPACK Durable IPO, while Kfin Technologies Limited is the registrar for the issue.
Lot size is the minimum number of shares that the investor has to put in as part of the IPO application. The lot size only applies for the IPO and once it is listed then it can be even traded in multiples of 1 shares since it is a mainboard issue. Investors in the IPO can only invest in minimum lot size and in multiples thereof. In the case of EPACK Durable Ltd, the minimum lot size is 65 shares with upper band indicative value of ₹14,950. The table below capture the minimum and maximum lots sizes applicable for different categories of investors in the IPO of EPACK Durable Ltd.
Incorporated in 2019, EPACK Durable Limited is an Original Design Manufacturer (ODM) of room air conditioners (RAC).
The company also manufactures components such as sheet metal parts, injection moulded parts, cross-flow fans, and PCBA components that are actively used in the production of RACs. The company has expanded its business into the small domestic appliance (SDA) market, particularly given the seasonal demand for RACs, and is currently developing and producing induction hobs, blenders, and water dispensers.
The company has four production facilities in Dehradun, namely Dehradun Unit I, Dehradun Unit II, Dehradun Unit III and Dehradun Unit IV, and one manufacturing facility at Bhiwadi, Rajasthan, with an annual production capacity as on March 31, 2023 for manufacturing (i) 0.90 million IDUs, 0.66 million ODUs, 0.36 million ODU kits and 0.42 million WACs and (ii) 0.11 million water dispensers, 1.2 million induction hobs and 0.30 million mixers and their components.
The company proposes to utilize the net Proceeds from the Fresh Issue towards funding the following objects:
- Funding capital expenditure for the expansion/setting up of manufacturing facilities;
- Repayment and/or prepayment, in part or in full, of certain outstanding loans of the company;
- General corporate purposes.
EPACK Durable Limited’s top management team was in Ahmedabad to brief the media about the IPO details. They included Bajjrang Bothra, Chairman, Ajay DD Singhania, MD and CEO, Rajesh Kumar Mittal, CFO and Amish Patani represeting Dam Capital.