EPACK Durable Limited IPO: Key Insights, Financials, and Evaluation
Explore EPACK Durable Limited IPO details, financial performance, strengths, weaknesses, and comparative analysis with peers. Stay informed for a wise investment decision.Despite its strengths in product innovation and end-to-end production capabilities, EPACK Durable faces challenges such as customer dependency and market cyclicality. The IPO's evaluation, with a P/E ratio ranging from 48.83x to 60.84x, suggests a potential overvaluation compared to industry peers.
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EPACK Durable Limited, established in 2019, is a prominent player in the air conditioner and small appliance manufacturing sector. The company's primary focus is on producing room air conditioners (RAC) and components for these machines, as well as other home appliances like stoves and blenders. With expansive manufacturing facilities in Dehradun and Bhiwadi, Rajasthan, EPACK Durable has become the second-largest company in India dedicated to designing and manufacturing room air conditioners.
As of March 2023, the company boasts 734 full-time employees and has demonstrated substantial growth, outperforming its previous fiscal years. EPACK Durable started by manufacturing parts for other air conditioner brands but has evolved to create new designs and expand its product line to include various home gadgets.
The company is set to launch its Initial Public Offering (IPO) from January 19, 2024, to January 23, 2024. The IPO price is fixed at Rs. 218 - Rs. 230 per share, with a total issue size of Rs. 640.05 CR. The IPO includes a mix of reserved portions for institutional investors, non-institutional investors, and retail investors.
EPACK Durable Limited's financial performance in FY23 showcases strong growth, with total assets at Rs. 1,464.16 Cr, revenue at Rs. 1,540.25 Cr, and Profit After Tax (PAT) at Rs. 31.97 Cr. The IPO's objective is to secure funds for manufacturing facilities, repay existing loans, and allocate funds for general corporate purposes.
The IPO is lead-managed by Axis Capital Limited, Dam Capital Advisors Ltd., and ICICI Securities Limited. The company's promoters, including Bajrang Bothra and Laxmi Pat Bothra, hold a significant pre-issue shareholding of 85.49%, which is expected to reduce to 65.36% post-issue.
Despite its strengths in product innovation and end-to-end production capabilities, EPACK Durable faces challenges such as customer dependency and market cyclicality. The IPO's evaluation, with a P/E ratio ranging from 48.83x to 60.84x, suggests a potential overvaluation compared to industry peers.
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