Epack Durable makes its market debut on January 30 and analysts expect the stock to list at a 2-10 percent premium over the issue price.
They expect the stock to open between Rs 235 and Rs 253 against the issue price of Rs 230.
The offer was subscribed 16.37 times, receiving bids for 32.7 crore shares against the issue size of 1.99 crore. High net-worth individuals (HNIs) remained at the forefront, buying 28.1 times the allotted quota. Retail investors picked up 6.29 times the portion set aside for them, while the part reserved for qualified institutional buyers was booked 25.5 times.
Also Read: All you need to know about Epack Durable IPO
“Considering the mood of the market, we are expecting a flat 5-10 percent listing gain over the issue price. The decent listing premium is justified on the back of strong order marquee names in the list of anchor investors including Societe Generale, Integrated Core Strategies (Asia), Copthall Mauritius Investment, HDFC Mutual Fund, SBI Life Insurance Company, HDFC Life Insurance Company, and Aditya Birla Sun Life Insurance Company,” said Prashanth Tapse, Sr VP Research & Research Analyst at Mehta Equities Ltd.
Epack Durable raised Rs 640.05 crore the public offer which comprised a fresh issue of 1.73 crore shares worth Rs 400 crore and an offer of sale of 1.04 crore shares worth Rs 240.05 crore. The price band for the issue, which closed on January 23, was fixed at Rs 218-230 a share. The promoters of the company are Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania, and Ajay DD Singhania.
Also Read: EPACK Durable IPO: 10 things to know about Rs 640-crore issue
“In our view, the stock would list in a price range of Rs 235-240. Given that the IPO is valued higher than its peers like Amber & PG Electroplast, we believe the stock could be looked to exit at the listing,” said Saral Seth, VP at Indsec Securities.
Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, expects the stock to list at around 10 percent premium.
The company will use the net proceeds for setting up manufacturing capacities in Bhiwadi, Rajasthan and Sri City, Andhra Pradesh. Funds will be utilised to purchase equipment for the Bhiwadi unit and to repay or prepay loans.
“The IPO seems fairly valued at the P/E of 49.6x and is expected to list at a single-digit premium on the bourses,” said Parth Shah, Research Analyst, StoxBox.
Also read: Epack Durable IPO | Institutional investors pick Rs 192 crore shares via anchor book
The stock was commanding a 1.7 percent premium in the grey market, which is an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the grey market premium (GMP) to get an idea of the listing price.
Epack Durable is India’s second-largest original design manufacturer (ODM) of room air conditioners (RAC). The company also makes components such as sheet metal parts, injection moulded parts, cross-flow fans, and PCBA components that are actively used in the production of RACs.
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