Epack Durable makes a quiet start, lists at 3.9% discount to IPO price

Epack Durable IPO: Ahead of the listing, shares were trading at a 2 percent premium in the grey market

Epack Durable made a weak market debut, listing at a 3.9 percent discount to the IPO price on January 30. The stock opened at Rs 221 on the National Stock Exchange and Rs 225 on the BSE against the issue price of Rs 230.

Analysts were expecting the stock to list with a 2-10 percent premium, somewhere between Rs 235 and Rs 253.

Ahead of the listing, the share was at a 2 percent premium in the grey market, 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.

The issue had received a decent response from investors, getting subscribed 16.37 times and 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 their allotted quota of shares. 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.

The price band for the offer, which opened for subscription on January 19 and closed on January 24, was fixed at Rs 218-230 per share.

The Rs 640.05-crore offer 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 company will use the net proceeds for setting up manufacturing capacities in Bhiwadi, Rajasthan and Sri City in Andhra Pradesh. Funds will also be used to purchase equipment for the Bhiwadi facility and repaying or prepaying loans.

Axis Capital, Dam Capital Advisors and ICICI Securities wee the book-running managers of the IPO and Kfin Technologies the registrar.

Also Read: All you need to know about Epack Durable IPO

EPACK Durable is an original design manufacturer of room air conditioners. It also makes components such as sheet metal parts, injection moulded parts, cross-flow fans, and PCBA components used in room air conditioners.

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