EPACK Durable shares to make D-St debut today; check the latest grey market premium

EPACK Durable is set to make market debut on Tuesday, with the grey market trends suggesting  a mild listing pop to investors amid volatility in the broader market. Last heard, EPACK Durable was commanding a premium of Rs 5 apiece in the grey market, signaling a negligible listing pop of 2-3 per cent. EPACK was once commading a premium of Rs 28-30 but the premium in the unofficial market tumbled sharply of late.
 

EPACK Durable enjoys business relations with top AC brands. The IPO was fairly valued with a asking PE of 49.6 times, said Parth Shah, Research Analyst at StoxBox, who said the stock could list at a single-digit premium.

"With sectoral tailwinds such as increasing global temperatures, higher consumer purchasing power and spending, urbanization, and favorable government policies, the company looks set to perform in the medium to long term duration. Hence, we advise investors who are allotted shares to hold the shares for a medium-to-long term horizon," he said.

EPACK Durable launched its initial public offering (IPO) in the price range of Rs 218-230 per share. The bidding window was opened from January 19 to January 24. The company successfully raised over Rs 640 crore through its primary offering, comprising a fresh share sale of Rs 400 crore and an offer-for-sale (OFS) of up to 1.04 crore shares.

The overall subscription for the IPO came in at 16.37 times, with substantial participation from qualified institutional bidders (QIBs). QIBs' allocation was oversubscribed 25.50 times. Non-institutional investors subscribed 28.10 times their allotted quota, while retail investors subscribed 6.29 times during the bidding process.

Established in 2019, EPACK Durable specialises as an original design manufacturer (ODM) of room air conditioners (RAC). In addition to RACs, the company produces various components such as sheet metal parts, injection molded parts, cross-flow fans, and PCBA components, crucial for RAC production.

Axis Capital, ICICI Securities, and Dam Capital Advisors (formerly IFDC Securities) served as the book running lead managers for the EPACK Durable IPO, and Kfin Technologies acted as the registrar for the issue.