EPACK Durables’ initial public offering is all set to open on 19 January. The original design manufacturing company has set the IPO for subscription at a price band of Rs 218-230. The company plans to raise Rs 640.05 crore. The issue will close on 23 January. 

The issue has a fresh issue of 17.4 million equity shares worth Rs 400 crore and an offer for sale of 10.4 million shares worth Rs 240.05 crore. 

According to the company, the issue is for funding capital expenditure, setting up manufacturing units, and clearing debt. 

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The company’s shares were trading at a premium of 13.5% in the grey market to Rs 261. The grey market is an unofficial market where shares trade before the allotment and listing. 

The 50% issue has been reserved for qualified institutional buyers, 15% for non-institution bidders, and 35% of the issue is reserved for retail investors.

On the business side, the company is the second largest original design manufacturer of room air conditioners in India. 

The room air conditioner company has 3 manufacturing facilities one in Dehradun, one in Rajasthan’s  Bhiwadi, and one in Andhra’s Sricity.

According to Arihant Capital, “The plants are vertically integrated and automated would improve the margins going forward.” The new product launches in the appliances portfolio would reduce the business fluctuation due to seasonality going forward. The brokerage house recommended, “Subscribe for Long Term” for the issue.

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