Mumbai: EPACK Durable Limited announced here recently their IPO of equity shares priced at Rs 218 to Rs 230 per share – aggregating to around Rs 640 crores — that will open on January 19 and close on January 23, 2024.

Ajay D D Singhania, Managing Director and Chief Executive Officer, EPACK, said that the company is the such second-largest in India with 24% market share and witnessed 44.57% Revenue CAGR (FY 21-FY 23) from supplying A/C components, while now looking at manufacturing different upcoming products.

While about 8% of Indian households have their own air-conditioners, this has presently become a necessity – instead of a luxury – that is being met through mostly growing incomes and purchasing power, Singhania said while noting that this market is expected to double within the next five years.

He said Rs 300 crores raised from the fresh IPO issue would be going towards CAPEX, while keeping in mind the Government’s PLI Scheme on manufacture of A/C components – for which the global demand of these from China itself is “humongous”.

Replying to questions, he said “This industry is expected to grow from the present 12% to 14/15%, and we are getting ready to capitalize on related opportunities opening in this market.”

The company proposes to utilize net proceeds from fresh issue of Equity Shares to funding capital expenditure for the expansion/setting up of manufacturing facilities, repayment and/or prepayment, in part or full, of certain outstanding company loans and general corporate purpose.

Axis Capital Limited, DAM Capital Advisors Limited and ICICI Securities Limited are the Book Running Lead Managers to the offer.