EPACK Durable IPO limited 2024

About Company – EPACK Durable

EPACK Durable Limited, established in Noida in 2019, has emerged as a swiftly expanding player in the Indian room air conditioner manufacturing sector. Notably, it holds the distinction of being the fastest-growing Original Design Manufacturer (ODM) based on production volume growth between the financial years 2020 and 2023. In the Indian air conditioner market, EPACK Durable Limited has secured the position of the second-largest ODM manufacturer, boasting a substantial 29% market share in terms of production volume in FY 2023.

Recognizing opportunities to enhance customer value, the company diversified its manufacturing portfolio by venturing into the production of various components such as sheet metal, injection-molded parts, cross-flow fans, and Printed Circuit Board Assembly (PCBA) components. These components are integral to the air conditioner manufacturing process. Concurrently, leveraging its existing production infrastructure, the company strategically expanded into the small household appliance market. This move aligns with the seasonal demand for items like lighting fixtures. EPACK Durable Limited is actively engaged in the development and production of induction cooktops, grinders, and water dispensers, demonstrating a commitment to backward integration and revenue stream diversification.

A noteworthy aspect of the company’s operations is its two vertically integrated production sites. This configuration facilitates cost-effective operations and efficient logistics management. EPACK Durable Limited leverages its manufacturing capabilities at a single site, where both component manufacturing and product assembly occur in tandem. This integration represents a significant achievement, as the company has organically grown to possess the highest degree of backward integration for Room Air Conditioners (RACs) within a single company and site in India.

What EPACK Durable IPO intend to achieve

• Customer Relations: Established and enduring relationships with current customers, providing a solid foundation for potential expansion into new markets.
• Industry Standing: Among the largest players in the high-growth Room Air Conditioner (RAC) and Small Domestic Appliance (SDA) manufacturing industries, benefiting from substantial entry barriers.
• Integrated Manufacturing: Advanced vertically integrated manufacturing operations covering the entire RAC and SDA value chain, showcasing a comprehensive product portfolio.
• Innovation Capabilities: Strong capabilities in product development and design optimization, ensuring our products remain competitive and aligned with market demands.
• Experienced Leadership: Supported by experienced promoters and a senior management team with a proven track record of high performance, contributing to sustained growth and leadership in the industry.

EPACK Durable IPO Lots

IPO Activity
Issue Price	₹218.00-230.00
Market Lot:	65 Shares
1 Lot Amount:	₹14950
Min Small HNI Lots(2-10 Lakh):	910 shares (14 lots)
Min Big HNI Lots(10+ Lakh):	4355 shares (67 lots)

EPACK Durable IPO Objective

The company intends to allocate the net proceeds from the Fresh Issue for the following purposes:

1. Expansion of Manufacturing Facilities: Utilizing funds for capital expenditure to facilitate the expansion or establishment of manufacturing facilities.
2. Loan Repayment: Repaying, either partially or in full, specific outstanding loans held by the company.
3. General Corporate Purposes: Applying funds for general corporate needs and initiatives.

EPACK Durable Limited Financial Information (Restated)

EPACK Durable Limited experienced a significant growth in its financial performance, with a remarkable 66.09% increase in revenue and an impressive 83.39% rise in Profit After Tax (PAT) between the fiscal years ending on March 31, 2023, and March 31, 2022.

Period Ended	31 Mar 2021	31 Mar 2022	31 Mar 2023	30 Sep 2023
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
Net Worth	68.91	121.87	313.62	478.31
Reserves and Surplus
Total Borrowing	238.56	383.98	492.45	369.57

Personal opinion

The IPO for EPACK Durable Limited, backed by its impressive financial performance, appears to be a compelling investment opportunity. The substantial 66.09% surge in revenue and an even more noteworthy 83.39% increase in Profit After Tax (PAT) between March 2022 and March 2023 underscore the company’s robust financial health and growth trajectory.

The decision to utilize the net proceeds for capital expenditure in expanding or establishing manufacturing facilities aligns with the company’s strategic vision. This indicates a commitment to scaling operations to meet increasing demand, potentially resulting in enhanced market share.

Furthermore, the allocation of funds for loan repayment reflects a prudent financial strategy, contributing to a healthier balance sheet and reducing financial obligations. The company’s proactive approach to managing its financial structure is likely to instill confidence among potential investors.

Incorporating diversified objectives, including general corporate purposes, showcases a well-rounded approach to utilizing the IPO funds. This flexibility indicates a readiness to seize emerging opportunities or address unforeseen challenges in the dynamic business landscape.

While any investment involves inherent risks, EPACK Durable Limited’s positive financial indicators and strategic allocation of IPO proceeds make a compelling case for consideration. Investors may find this IPO attractive not only for its potential returns but also for the company’s demonstrated ability to adapt and capitalize on market trends.

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