EPACK Durable sells its Epavo stake to Ram Ratna Wires for ₹15 crore

Mergers & acquisitions
consumer durables manufacturing

Blacklitt Research29 October 20262 min read

Close-up of the copper windings and rotor of an electric motor. — Photo by Bruno Mira on Unsplash (Unsplash License). Illustrative image.

EPACK Durable (NSE: EPACK) has approved the sale of its entire 50% stake in Epavo Electricals Private Limited to Ram Ratna Wires Limited for ₹15.00 crore in cash, it said in a filing on 29 Oct 2026. Ram Ratna Wires Limited (RRWL) already holds the other 50%, and completion is expected by 30 Nov 2026.

Key highlights

Cash consideration: ₹15.00 crore at ₹6.78 a share
Shares sold: 2,21,26,000 equity shares, 50% of Epavo
Expected completion: by 30 Nov 2026
Impairment on the Epavo investment: ₹7.13 crore

The sale in numbers

Item	Detail
Buyer	Ram Ratna Wires Limited (RRWL), the other 50% holder of Epavo
Business sold	Epavo Electricals Private Limited, manufacturer of BLDC motors and air-movement solutions
Stake	50%, 2,21,26,000 equity shares of face value ₹10 each
Consideration	₹15.00 crore cash, payable at closing
Expected completion	By 30 Nov 2026
Epavo turnover, FY 2025-26	₹25.40 crore
Epavo net worth, 31 Mar 2026	₹12.01 crore, 1.23% of standalone net worth

Sale of the entire 50% stake to the joint venture partner

The Board approved the sale of the Company's entire stake in Epavo to RRWL, and the Share Purchase Agreement is to be executed on 29 Oct 2026. The cash consideration is payable at closing and is subject to the conditions in the agreement. Epavo will cease to be a joint venture of the Company from the closing date.

The company says Epavo will repay outstanding loans and settle other dues payable to the Company. It also says the Company will not manufacture BLDC motors for three years from closing, does not currently undertake that business, and has no liability imposed on it under the restriction.

An impairment on the Epavo investment

The standalone results for the quarter and six months ended 30 Sep 2026 include an impairment loss of ₹7.13 crore. The company says the carrying amount of the investment was higher than the agreed consideration, and it treated the loss as an exceptional item.

Other matters in the same board meeting

Rajesh Kumar Mittal resigned as Chief Financial Officer and Key Managerial Personnel, citing personal reasons, with effect from the close of business hours on 31 Oct 2026. The Board also approved voluntary strike-off of two non-operational wholly owned subsidiaries.

Deloitte Haskins & Sells qualified its review of both sets of results for the quarter and six months ended 30 Sep 2026 over a disputed trade receivable of ₹19.61 crore, on which no provision has been recognised.

What the Epavo sale means for EPACK Durable's shareholders

The Company exits its 50% holding in Epavo for ₹15.00 crore in cash. The filing does not say what gain or loss the sale will produce beyond the impairment, what it will do to consolidated results, or who will succeed Mittal as Chief Financial Officer. The next dated step is completion, expected by 30 Nov 2026.

Reference: Original filing (PDF)

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