EPACK Durable shares disappoint on D-st debut; stock lists at 4% discount on NSE

Shares of EPACK Durable Ltd disappointed on its debut at Dalal Street on Tuesday. The ODM player debuted with a mild discount of 3.91 per cent at Rs 221 per share on the National Stock Exchange (NSE), over its issue price of Rs 230. Similarly, the stock was listed at Rs 225 on BSE, a marginal discount of 2.17 per cent over the given issue price.

Listing of EPACK Durable has been below the expected lines. Last heard, the company was commanding a premium of Rs 5 apiece in the grey market, signaling a negligible listing pop of 2-3 per cent to the investors. However, the premium in the unofficial market has tumbled sharply from Rs 28-30 during the bidding process for the issue.

EPACK Durable sold its IPO in the price band of Rs 218-230 per share with a lot size of 65 shares, which was open for bidding between January 19 to January 24. The company raised a little more than Rs 640 crore through its primary offering, which included a fresh share sale of Rs 400 crore and offer-for-sale (OFS) of up to 1.04 crore equity shares.

The issue was overall subscribed 16.37 times, thanks to strong bidding from qualified institutional bidders (QIBs), who joined the bidding party on the last day. Their allocation was booked 25.50 times. The quota for non-institutional investors was subscribed 28.10 times, and the portion reserved for retail investors was subscribed 6.29 times during the bidding.

Incorporated in 2019, EPACK Durable is an original design manufacturer (ODM) of room air conditioners (RAC). The company also manufactures components such as sheet metal parts, injection moulded parts, cross-flow fans, and PCBA components that are actively used in the production of RACs.

Axis Capital, ICICI Securities and Dam Capital Advisors (formerly IFDC Securities) were the book running lead managers of the EPACK Durable IPO, while Kfin Technologies is the registrar for the issue. 

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