The initial public offer (IPO) of EPACK Durable received bids for 32,70,94,625 shares as against 1,99,77,615 shares on offer. The issue was subscribed 16.37 times.
The Qualified Institutional Buyers (QIBs) category was subscribed 25.50 times. The Non Institutional Investors (NIIs) category was subscribed 28.10 times. The Retail Individual Investors (RIIs) category was subscribed 6.29 times.
The issue opened for bidding on Friday (19 January 2024) and it closed on Wednesday (24 January 2024). The price band of the IPO is fixed at Rs 218-230 per share.
The offer comprises fresh issue of up to Rs 400 crore and offer for sale of up to 10,437,047 equity shares.
Of the net proceeds, the company proposes to spend Rs 230 crore towards funding of capital expenditure for expansion and setting up of manufacturing facilities including Rs 110.612 towards setting up a manufacturing plant at Bhiwadi and SriCity; Rs 80 crore towards repayment and prepayment, in full or part, of all or certain borrowings and balance amount towards general corporate purposes.
Ahead of the IPO, EPACK Durable on Thursday, 18 January 2024, raised Rs 192.01 crore from anchor investors. The board allotted 83.48 lakh shares at Rs 230 each to 18 anchor investors.
EPACK Durable 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 firm reported a net profit of Rs 2.65 crore and total sales of Rs 614.80 crore for the six months ended on 30 September 2023.