The EPACK Durable IPO will begin offering on January 19, 2024 and is expected to close on January 23, 2024. The company is India’s second largest Original Design Manufacturer (ODM) of room air conditioners. In this article: EPACK Durable IPO Detailsimportant dates, IPO size, IPO objectives, positive aspects, risk factors, and a complete review.
About EPACK Durable Limited
The company is India’s second-largest ODM manufacturer of room air conditioners in terms of production volume of original design room air conditioners (indoor units + outdoor units) through the ODM route in 2023.
These are customer-centric businesses focused on continuous innovation and operational efficiency.
We also identified opportunities to increase added value in our customer offerings and accordingly began manufacturing various components such as sheet metal, injection molding, crossflow fans, and PCBA components that are actively used in the production of RACs. Did.
In parallel, we have leveraged our existing manufacturing infrastructure to strategically expand our business in the small household appliances market, particularly taking into account the seasonality of RAC’s demand, and currently include induction cooktops, mixer grinders, and water heaters. We design and manufacture dispensers. This is evidence of the company’s continued focus on backward integration of its operations and diversification of its revenue sources.
EPACK Durable IPO – Important Details
IPO start date | January 19, 2024 |
IPO deadline | January 23, 2024 |
IPO listing date | January 29, 2024 |
Type of problem | Book Built Issue IPO |
face value | 10 rupees per share |
IPO price range | 218 to 230 rupees per share |
lot size | 65 shares |
Exhibition location | BSE and NSE |
Total issue size | Rs. 640.05 billion |
Latest issue | Rs. 400 million |
OFS | Rs. 240.05 billion |
EPACK Durable Limited Financials
Fiscal year end/period end (amount in billions) | ||||
Period ends | March 31, 2021 | March 31, 22 | March 31, 23 | September 30, 23 |
assets | 520.37 | 1,076.68 | 1,464.16 | 1,071.45 |
revenue | 739.66 | 927.34 | 1,540.25 | 616.32 |
Profit after tax | 7.80 | 17.43 | 31.97 | 2.65 |
EPACK Durable IPO Goal
IPO purposes include both OFS and fresh issuance
1) Offering price (OFS), 240.05 million rupees – Under OFS, the IPO proceeds will go to the selling shareholders and the company will receive no benefit.
2) New issue of Rs 40 billion – Proceeds will be used for the following purposes:
- Financing capital expenditures for expansion/installation of manufacturing facilities.
- Partial or full repayment and/or prepayment of certain outstanding loans of the Company.
- General corporate purposes.
EPACK Durable IPO – Positive aspects and strengths of the company
- The company is India’s second largest original design manufacturer (ODM) of room air conditioners.
- We have long-standing relationships with existing customers and have the potential to expand our customer base.
- The company is one of the leading manufacturers in the fast-growing RAC and SDA manufacturing industry with robust product development and design optimization capabilities.
- Strong revenue growth in the past.
EPACK Durable IPO – Risk Factors for this IPO
- The company’s profit margins range from 0.4% to 2.08%. These profit margins also declined from 2.08% in FY2023 to 0.43% for the six months to September 2023.
- A company’s IPO goals include both OFS and new issues. For OFS, the funds will be used to sell shareholders and the company will not make a profit.
- The majority of our revenue is derived from certain key customers. Losing such customers can affect your business.
- The company’s customers do not make long-term commitments and may cancel or change procurement requirements that could impact their business or operations.
- Investors can refer to EPACK Durability IPO RHP against complete risk factors
EPACK Durable IPO Price Evaluation
- IPO price range is Rs 218 to Rs 230 per share
- PER analysis
- Considering the last three years’ weighted EPS of Rs 3.75, the P/E ratio is 61x.
- Considering last year’s FY23 EPS of Rs 4.64, the P/E ratio is 50x.
- Annualized by taking into account EPS for the six months to September 2023, the P/E ratio is 338x.
- This means that the company is seeking an issue price in the range of 50x to 338x P/E.
- Comparison with listed peers
- Dixon Technologies Limited is trading at a P/E ratio of 140x (highest)
- Erin Electronics’ P/E ratio is 24x (lowest).
- Industry average P/E is 75x
- Therefore, an IPO price range of 50x to 338x P/E is expensive.
EPACK Durable IPO Review – Should you subscribe or not?
After reading this article to the end, you may be wondering whether this IPO is a good or bad investment and whether you should subscribe.
The company is India’s second largest original design manufacturer (ODM) of room air conditioners. We have long-standing relationships with existing customers and have the potential to expand our customer base. The company has achieved significant revenue growth in the past.
On the downside, the company’s profits are modest, with profits down for the six months to September 2023 compared to the previous year. The purpose of the IPO also includes an OFS, which is transferred to the selling shareholder and the company does not receive any profit. Additionally, most of our revenue comes from certain key customers, and losing any of them poses a risk.
The issue price is high.
Personally, I would like to skip such an IPO for now.

