EPACK Durable IPO: Company Raises Rs 192 Crore from Anchor Investors

EPACK Durable Ltd, an outsourced design manufacturer of room air conditioners, successfully raised Rs 192 crore from anchor investors on Thursday, January 18, 2023, in anticipation of its upcoming initial public offering (IPO). The company allotted 83.48 lakh equity shares to 18 funds at a price of Rs 230 per share, which represents the upper end of the price band. This information was disclosed in a circular uploaded on the BSE website.

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Anchor Investors

Several prominent funds and financial institutions participated in the anchor bidding process. Notable participants include Societe Generale, Copthall Mauritius Investment Ltd, Integrated Core Strategies Asia Pte Ltd, SBI Life Insurance Company, SBI General Insurance Company, HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, Aditya Birla Sun Life Insurance Company, and HDFC Mutual Fund.

IPO Details

The EPACK Durable IPO comprises a combination of fresh issuance of equity shares worth Rs 400 crore and an offer-for-sale (OFS) of 1.3 crore equity shares by promoters, promoter group members, and existing shareholders. Under the OFS, two investor shareholders, India Advantage Fund S4 I and Dynamic India Fund S4 US1, along with promoters, will be offloading their shares.

The IPO is scheduled to open for public subscription on January 19, 2023, and will conclude on January 23, 2023. The price band for the issue has been set at Rs 218-230 per share. At the upper end of the price band, the maiden public issue is expected to mobilize approximately Rs 640 crore.

Utilization of Proceeds

The proceeds from the fresh issue will be primarily utilized for funding capital expenditure related to the setting up of new manufacturing facilities, repayment of loans, and general corporate purposes.

Company Background

Founded in 2002, EPACK Durable has established itself as a leading manufacturer of room air conditioners and small household appliances. The company operates integrated manufacturing facilities in Dehradun and Bhiwadi, Rajasthan, where it manufactures room air conditioners, components, and small household appliances for renowned Indian and multinational brands in India as an original design manufacturer (ODM).

Book-Running Lead Managers

Axis Capital, Dam Capital Advisors, and ICICI Securities are serving as the book-running lead managers for the EPACK Durable IPO.

EPACK Durable's successful anchor investor placement of Rs 192 crore sets the stage for a promising IPO. The company's strong market position, experienced management team, and growth potential make it an attractive investment opportunity for investors seeking exposure to the consumer durables sector.