EPACK Durable IPO: Pioneering Innovation in Room Air Conditioning
EPACK Durable Limited, established in 2019, has made a significant mark as an Original Design Manufacturer (ODM) of room air conditioners (RAC). The company's expertise extends to producing components integral to RAC manufacturing. With a strategic move into small domestic appliances, EPACK Durable has diversified its product range, catering to a broad market segment.
The company witnessed a remarkable increase in revenue by 66.09% and profit after tax (PAT) by 83.39% between FY 2022 and FY 2023. These figures reflect the company's strong financial growth and market penetration.
Company SWOT Analysis
Strengths: Innovative product range, strong manufacturing capabilities, diversified product portfolio.
Weaknesses: Relative newness in the market, dependence on seasonal demand for RACs.
Opportunities: Expansion into various domestic appliance markets, potential growth in the RAC sector.
Threats: Intense competition in the RAC and domestic appliance market, potential supply chain disruptions.
EPACK Durable is set to enhance its market presence and capital base through its IPO.
IPO Date: January 19 to January 23, 2024
Listing Date: January 29, 2024
Price Band: ₹218 to ₹230 per share
Issue Size: ₹640.05 Crores
Lot Size: 65 Shares
Lead Managers: Axis Capital, Dam Capital Advisors, ICICI Securities
Registrar: Kfin Technologies Limited
Objectives of the Issue
The IPO aims to fund capital expenditure for manufacturing expansion, repay outstanding loans, and for general corporate purposes.
Market Position and Expansion Strategy
As the second largest RAC ODM, EPACK Durable is on an expansion spree to capture emerging market opportunities.
IPO Grey Market Premium (GMP)
The GMP for EPACK Durable's IPO is Rs.35 which is a bit weak.
Conclusion for Investors
EPACK Durable's IPO presents an investment opportunity in the RAC and home appliance sector, underpinned by the company's growth trajectory and market expansion plans.
All information is provided for educational and informational purposes only. Data is sourced from publicly available sources such as the DRHP filed by the company and other reliable sources. No guarantee is given for the accuracy of the data; however, we have tried our best to present accurate data to our readers. Always consult a financial advisor or conduct your own analysis before investing/trading in the stock market.