Epack Durables IPO Day 1: Issue Subscribed 64%

19 Jan 2024 , 03:58 PM

On Friday, the first day of the bidding process, the initial public offer (IPO) of Epack Durables has received 64% of its total subscriptions. Retail investors had oversubscribed their IPO allotment with 1,05,65,425 bids or 105%, with non-institutional investors coming in second at 22,98,920 bids or 53%. In the QIB section, there have been 11,830 bids. Click here to subscribe the IPO.

Investors can place a bid for up to 65 shares in a single lot at the IPO, which is priced between Rs 218 and Rs 230 per share.

Retail investors will receive 35% of the offer, qualified institutional buyers (QIBs) would receive 50%, and non-institutional investors will receive 15%.

The company has received Rs 192 crore from anchor investors ahead of the IPO opening. Notable entities who participated in the round included Copthall and Society Generale.

In terms of quantity sold in FY23, Epack Durable ranks as the second-largest original design manufacturer (ODM) of room air conditioners in India. Its current product line includes small household appliances, parts and complete room air conditioners (RACs), which it designs and manufactures.

The company’s strong product development capabilities, sophisticated vertically integrated manufacturing, and long-standing partnerships with major clients are among its assets.

During the FY21–23 period, the company’s sales, EBITDA, and PAT rose at a CAGR of 44.6%, 56.2%, and 102.5%, respectively.

The company recorded sales of Rs 615 crore and net profit of Rs 2.6 crore for the six months ending September 2023. The company’s operating revenue increased by 66% to Rs 1,539 crore in FY23, while its profit increased by 88% to Rs 32 crore.

The issue’s book-running lead managers are ICICI Securities, DAM Capital Advisors, and Axis Capital.

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