Tepid Debut for EPACK Durable: Shares Listed at 4% Discount

30 Jan 2024 , 09:49 AM

EPACK Durable, a prominent player in the manufacturing sector makes subdued market debut. The company marked its IPO debut with shares listing at ₹221 on the NSE, reflecting a 3.91% discount compared to the issue price of ₹230. On the BSE, the shares were listed at ₹225, carrying a 2.17% discount. 

The IPO garnered significant attention, being oversubscribed 16.37 times, with bids received for 32.7 crore shares against the initial offering of 1.99 crore shares.

Key subscription statistics reveal the enthusiastic response from investors:

• High net-worth individuals (HNIs) took the lead, subscribing 28.1 times their allotted quota.
• Retail investors displayed strong interest, subscribing 6.29 times their allocated portion.
• Qualified institutional buyers subscribed 25.5 times the shares reserved for them.

EPACK Durable successfully raised ₹640.05 Crore through the public offering, comprising a fresh issue of 1.73 crore shares valued at ₹400 Crore and an offer for sale of 1.04 crore shares worth ₹240.05 Crore. The price band for the issue, closing on January 23, was set at ₹218-230 per share. The company’s promoters include Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania, and Ajay DD Singhania.

The net proceeds from the IPO will be allocated to strategic initiatives, including the establishment of manufacturing capacities in Bhiwadi, Rajasthan, and Sri City, Andhra Pradesh. Additionally, funds will be directed towards acquiring equipment for the Bhiwadi unit and repaying or prepaying loans.

EPACK Durable holds the distinction of being India’s second-largest original design manufacturer (ODM) of room air conditioners (RAC). Beyond RACs, the company manufactures critical components like sheet metal parts, injection-molded parts, cross-flow fans, and PCBA components essential in RAC production.

As the company embarks on this new phase post-IPO, the strong subscription and investor confidence reflect optimism in EPACK Durable’s growth trajectory within the manufacturing and air conditioning sectors.