EPACK Durable's IPO to open on Jan 19; sets price band at Rs 218-230/ share

EPACK Durable's IPO set to launch on Jan 19 with a price range of Rs 218-230 per share, aiming to raise Rs 640 crore. The offering includes fresh shares and an OFS by promoters and investors. Funds will enhance manufacturing and repay debts. Public subscription ends on Jan 23.

EPACK Durable Ltd, an outsourced design manufacturer of room air conditioners, on Tuesday fixed a price band of Rs 218-230 per share for its Rs 640 crore-Initial Public Offering (IPO).

The initial share sale will open for public subscription on January 19 and conclude on January 23. Bidding for anchor investors will open for a day on January 18, according to a public notice issued by the company.

The IPO comprises 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 -- will be offloading shares, apart from promoters.

At the upper end of the price band, the maiden public issue is expected to mobilise Rs 640 crore.

Proceeds of the fresh issue will be utilised for funding capital expenditure for the setting up of manufacturing facilities, payment of loans, and general corporate purposes.

Half of the issue size has been reserved for Qualified Institutional Buyers (QIB), 35 per cent for retail investors and the remaining 15 per cent for Non-Institutional Investors (NII).

Founded in 2002, EPACK Durable manufactures room air conditioners and small household appliances.

It has integrated manufacturing facilities in Dehradun and Bhiwadi, Rajasthan where it manufactures room air conditioners, components, and small household appliances for leading Indian and MNC brands in India as an original design manufacturer (ODM).

In September 2022, EPACK Durable raised USD 40 million (around Rs 318 crore) in a second round of funding led by Affirma Capital. It had raised USD 24 million from ICICI Venture in its first round of funding.

Axis Capital, Dam Capital Advisors, and ICICI Securities are the book-running lead managers to the issue.

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