EPACK Durable IPO Price, Dates, and Analysis: Should You Chillingly Invest?

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EPACK Durable IPO: ACing the Indian Market with Hot Growth Potential 

The Indian air conditioning market is buzzing. EPACK Durable Limited, a young ODM specialising in room air conditioners (RACs) and small domestic appliances (SDAs), is poised to ride the thermal wave with its upcoming IPO. Buckle up for a deep dive into EPACK’s story, analysing its financials, growth prospects, and potential to take calculated risks so you can decide whether to invest in this fantastic opportunity.

EPACK Durable IPO: Riding the AC Boom: A Market Chilling with Potential

India’s AC market is experiencing a golden age, driven by rising disposable incomes, urbanisation, and scorching summers. Industry estimates project the market to reach a whopping ₹53,292 crore by 2025, growing at a CAGR of 12.1%. This translates to millions of new air conditioners whirring into action, creating a fertile ground for companies like EPACK Durable.

EPACK Durable IPO: Who is EPACK Durable?

Founded in 2019, EPACK Durable has swiftly established itself as a leading ODM, primarily focusing on RACs. They manufacture complete AC units under client brands, catering to domestic and international markets. But EPACK isn’t just a one-trick pony. Recognising the seasonal nature of AC demand, they’ve strategically diversified into SDAs like induction hobs, blenders, and water dispensers, providing year-round revenue streams.

EPACK Durable IPO: The IPO Recipe: Fresh Issue and Offer for Sale

EPACK’s IPO is a blend of fresh issues and offers for sale (OFS). The business hopes to raise ₹400 crore by the 

Fresh issues will be used for debt repayment, capacity expansion, and strategic acquisitions. Meanwhile, existing shareholders will offload ₹240.05 crore worth of shares in the OFS. This combination allows EPACK to tap new funds while providing liquidity for existing investors.

Key Ingredients of the Offering:

  • Issue Size:
     ₹640.05 crore (combined)

  • Price Band:
    ₹218 – ₹230 per share

  • Issue Open/Close Dates:
     January 19-23, 2024

  • Listing Exchanges:
    BSE & NSE
  • Lot Size:

EPACK Durable IPO: Financial Feast: Analyzing EPACK’s Numbers

Let’s dissect EPACK’s financials to see if they have the muscle to weather the market’s heat:

  • Revenue:
    ₹1,540.25 crore in FY23 (strong growth from previous years)

  • Profit After Tax (PAT):
    ₹31.97 crore in FY23 (healthy profitability)

  • Debt-to-Equity Ratio:
    0.68 (indicates moderate debt levels)
  • Return on Equity (ROE):
    23.85% (impressive shareholder returns)

EPACK Durable IPO: Growth Trajectory: Hot or Not?

EPACK’s future hinges on capitalising on the booming AC and SDA markets. Here are some key growth drivers:

  • Expanding Production Capacity:
    EPACK plans to increase its AC production capacity by 50% and double its SDA capacity by 2025.

  • Focus on Innovation:
    The company invests in R&D to develop new products and differentiate itself from competitors.

  • Geographical Diversification:
    EPACK is expanding its international presence in markets like West Asia and Africa.

EPACK Durable IPO: Potential Risks: Cooling Down Expectations

Like any investment, EPACK comes with its own set of risks:

  • Competition:
    The AC and SDA markets are fiercely competitive, with established players like Voltas and Havells.

  • Fluctuations in Raw Material Prices:
     Dependence on volatile raw materials like copper and steel can impact margins.

  • Macroeconomic Headwinds:
    A slowdown in economic growth could dampen consumer demand for ACs and SDAs.

EPACK Durable IPO: Should You Invest? Weighing the Options

EPACK’s IPO presents a promising opportunity for investors seeking exposure to the booming consumer durables sector. However, a careful analysis is essential before taking the plunge:

EPACK Durable IPO: The Final Verdict: Invest Wisely, Sleep Soundly

EPACK Durable Limited IPO is a well-structured offering with significant growth potential. However, investors should thoroughly understand the risks and conduct their due diligence before deciding. Remember, even with the coolest of IPOs, there’s always a chance you might get burned. Choose wisely, and let your investment decisions be as excellent as EPACK’s ACs!


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