EPACK Durable Ltd Announces Merger with ECPL for Growth and Value Creation

On May 4, 2024, EPACK Durable Limited informed the stock exchanges about the ongoing merger of EPACK Components Private Limited (ECPL), the company’s Wholly-Owned Subsidiary, into EPACK Durable Limited.

The transferor company i.e., EPACK Components Private Limited, is involved in the

manufacturing of copper tubing parts, sheet metal parts, spare parts for electronic appliances, and mechanical items. In FY 2023, EPACK Components Private Limited reported a turnover of ₹130.33 crore and a net worth of ₹36.56 crore.

The transferee company, EPACK Durable Limited, manufactures room air conditioners, small domestic appliances, and components such as cross-flow fans, heat exchangers, axial fans, injection-moulded components, sheet metal press parts, copper-fabricated products, universal motors, induction coils, and Printed Circuit Board Assemblies (PCBAs). In FY 2023, EPACK Durable Limited reported a turnover of ₹1,519.76 crore and a net worth of ₹312.81 crore.

Regarding the rationale for the merger, the company stated that the scheme would ensure an optimised legal entity structure, which will help the Transferor Company and the Transferee Company to align their business activities constructively. The scheme aims to merge the operations of the Transferor Company and the Transferee Company, leveraging their complementary nature to mitigate risks, enhance rewards, and attract strategic partners. This consolidation is expected to streamline management, reduce costs, boost revenues, profitability, market share, and generate long-term shareholder value.

The merger aims to combine both companies’ assets, expertise, and resources, enhancing brand presence in electronic durables manufacturing. Simplifying group and management structures improves operational focus, standardisation, and internal controls, reducing compliance burden and costs.

EPACK Durable stated that since the transferor company is its wholly-owned subsidiary, no shares shall be allotted under the Scheme, and the shareholding pattern of the Transferee Company will not change pursuant to the Scheme.

On May 6, 2024, the share price of EPACK Durable Ltd opened at ₹199.00, touching the day’s low at ₹189.50, as of 10:22 AM on the NSE.

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