EPACK Durable Limited

About EPACK Durable Limited  Incorporated in 2019, EPACK Durable Limited is India’s second largest room air conditioner (RAC) maker in terms of the number of units manufactured. The company also manufactures components such as sheet metal parts, injection moulded parts, cross-flow fans, and PCBA components that are actively used in the production of RACs.  The company’s product portfolio includes room air conditioners (RACs) such as window air conditioners (WACs), indoor units (IDUs) and outdoor units (ODUs) ranging from 0.75 tons to 2 tons. It also manufactures induction cooktops, mixer grinders, and water dispensers under the small domestic appliances category and various other components for its clients.  It operates dedicated R&D centres in Greater Noida, Bhiwadi and Dehradun, with an employee count of 57 in its R&D team as of 30 September 2023. Its manufacturing facilities are located in Dehradun, Uttarakhand, consisting of four units.  These manufacturing facilities are vertically integrated, which enables the company to maintain its operational costs and logistics management. It has the highest amount of backward integration for RACs under a single company or site, which has been grown organically within the same company in India.  Its customers comprise four of the top six RAC brands in the Indian market as of FY23 and include Blue Star, Daikin Airconditioning India, Carrier Midea India, Voltas, Havells India, Bajaj Electricals, BSH Household Appliances Manufacturing and Usha International among others.  Between FY21 and FY23, it saw a CAGR rise of 27% in its revenue from operations and 60% in its profit. Moreover, the air conditioner market, under the Indian consumer durables market, is expected to grow at a CAGR of 15% by value between FY23 and FY28, which could benefit the company.  And now, EPACK Durable Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to repay borrowings, fund capital expenditure and for general corporate purposes. Its shares will be listed on the NSE and the BSE.  Here are key details about the EPACK Durable Limited IPO:     Company Name  EPACK Durable Limited   Company Type  Private    Company Established On  2019   EPACK Durable Limited IPO Opening Date  19th January 2024    EPACK Durable Limited IPO Closing Date  24rd January 2024   EPACK Durable Limited IPO Allotment Status  25th January 2024    Credit of Shares to the Demat Account  29th January 2024   EPACK Durable Limited IPO Listing Date  30th January 2024    EPACK Durable Limited IPO Face Value  ₹10 per share   EPACK Durable Limited IPO Lot Size  65 shares    EPACK Durable Limited IPO Issue Size  approx. ₹640 crore   EPACK Durable Limited IPO to be Listed on  BSE, NSE    EPACK Durable Limited IPO Price band  ₹218 - ₹230 per share        Financial snapshot     Particulars  FY21  FY22  FY23  Q2FY24    Revenue  ₹ 736 crore  ₹ 924 crore  1,538 crore  ₹ 614 crore    Net Profit/Loss  ₹ 7.80 crore  ₹ 17.4 crore  31.9 crore  ₹ 2.6 crore              Here’s a quick look at EPACK Durable Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Long-standing relationships with established customers.  Second largest original design manufacturer (ODM) manufacturer in the Indian RAC manufacturing market, with a market share of 29% in terms of volume manufactured, in FY23.  The company operates in a fast-growing industry as the Indian RAC industry is forecasted to grow at a rate of 12% by volume between FY23 and FY28.  Vertically integrated manufacturing operations as products and corresponding components are manufactured within the same location, which helps eliminate transportation costs.  Robust product development and design capabilities as it was the first RAC ODM in India to introduce 5 mm copper tubing in the heat exchangers for its RACs and the first to design and manufacture WACs with R32 refrigerant.   Risks and threats   The company generates a significant portion of its revenue from top five customers, which accounted for 82% of its revenue from operations in FY23.  Customers are not required to make long-term commitments.  RAC business is subject to seasonal variations and cyclicality.  The company receives various tax incentives as part of various government schemes Hence, any reduction or termination in tax incentives will affect its business.  Faces forex risks as it imports raw materials accounting for the cost of ₹526 crore in FY23.  Operates a capital intensive business with current borrowings amassing to ₹378 crore as of 31 March 2023.  Faces competition from Amber Enterprises, PG Electroplast, Elin Electronics, Suvidha Appliances, RS Polymers, Vardhman, Suvidha Appliances, Agilitive, MVM, Kaser, Veeline and Vending Updates for its various product categories.            EPACK Durable Limited IPO details  |EPACK Durable Limited IPO date  According to the offer document filed by the company with the SEBI, the EPACK Durable Ltd IPO’s opening date – in other words, the EPACK Durable Ltd IPO launch date – is 19 January 2024. The EPACK Durable Ltd IPO closing date is 23 January 2024. The allotment status date is 24 January 2024.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 25 January 2024. The EPACK Durable Ltd IPO listing date is 29 January 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |EPACK Durable Limited IPO Price Band  The IPO is an offer for sale as well as a fresh issue. The EPACK Durable Ltd IPO price band is ₹218 - ₹230 per share. Interested investors can choose a price within this band to apply for the IPO.  The EPACK Durable Ltd IPO listing price will be determined on 29 January 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  |EPACK Durable Limited IPO Lot size  The EPACK Durable Ltd IPO details are declared. The EPACK Durable Ltd IPO lot size is 65 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the EPACK Durable Ltd IPO issue size is approx. ₹640 crore.           How to pre-apply for the EPACK Durable Limited IPO?  You can pre-apply for the EPACK Durable Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘EPACK Durable Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the EPACK Durable Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the EPACK Durable Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the EPACK Durable Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘EPACK Durable Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the EPACK Durable LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the EPACK Durable Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your EPACK Durable Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the EPACK Durable Limited IPO  To apply for the EPACK Durable Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the EPACK Durable Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the EPACK Durable Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.