EPACK Durable Ltd, a prominent outsourced design manufacturer specializing in room air conditioners, has taken a significant step towards expansion by submitting a draft red herring prospectus to the Securities Exchange Board of India (SEBI) for an upcoming initial public offering (IPO). The IPO aims to raise funds through a combination of a fresh issue and an offer for sale, signaling the company’s strategic drive for growth and development.
The proposed IPO comprises a fresh issue of Rs 400 crore, earmarked for critical capital expenditures towards establishing advanced manufacturing facilities, as well as addressing general corporate needs. This financial infusion underscores EPACK Durable’s commitment to technological advancement and enhancing production capabilities.
The offer for sale (OFS) component of the IPO includes up to 13.07 million shares, with participation from existing shareholders and promoters. Among the key contributors to the OFS are Bajrang Bothra (1.17 million shares), Laxmi Bothra (6.67 lakh shares), Sanjay Singhania (7.49 lakh shares), Ajay Singhania (7.49 lakh shares), Pinky Nikhil Bothra (2.87 lakh shares), Preity Singhania (2.87 lakh shares), Nikhil Bothra (4.42 lakh shares), Nitin Bothra (4.42 lakh shares), Rajjat Kumar Bothra (3.8 lakh shares), Advantage Fund S41 (7.26 million shares), and Dynamic India funds S4 (6.31 lakh shares).
EPACK Durable, founded in 2002 and headquartered in Greater Noida, has carved a niche for itself in the realm of manufacturing room air conditioners and small household appliances. The company operates state-of-the-art manufacturing facilities in Dehradun and Bhiwadi, Rajasthan, where it produces an array of products, including window air conditioners, indoor and outdoor units, and split inverter air conditioners. Additionally, EPACK Durable also manufactures a range of small domestic appliances, such as cooktops, mixer grinders, and water dispensers. The company’s diverse production portfolio extends to components like heat exchanger cross flow fans, axial fans, and sheet metal press parts.
EPACK Durable’s financial performance reflects its growth trajectory, with a remarkable revenue surge from Rs 924.16 crore in the previous fiscal year to an impressive Rs 1538.83 crore in FY23. This meteoric rise in revenue was coupled with a commendable increase in net profit, which climbed from Rs 17.43 crore in the preceding year to Rs 31.97 crore during the same period. These impressive financial indicators underscore the company’s operational prowess and effective management strategies.
Axis Capital, Dam Capital Advisors, and ICICI Securities have been entrusted with the role of book-running lead managers for the anticipated IPO. Their involvement signifies the significant interest and confidence from leading financial institutions in EPACK Durable’s prospects and potential in the market.
As EPACK Durable Ltd embarks on this transformative journey towards an IPO, its commitment to innovation, growth, and delivering quality products remains unwavering. The IPO not only presents a substantial opportunity for investors but also marks a pivotal milestone in the company’s continued evolution as a key player in the manufacturing landscape.