EPACK Durable Limited lists at a discount; opens at Rs 221 per share on the NSE

EPACK Durable Limited is an Original Design Manufacturer (ODM) of room air conditioners, debuted on the Indian stock market today.

Upon its debut on the BSE, the stock opened at Rs 225 per share, reflecting a 2.17% discount compared to the final issue price of Rs 230 per share. The market capitalisation of the company stands at Rs 2,155.47 crore on the BSE. On the other hand, the stock debuted on NSE at Rs 221, representing a discount of 3.91% compared to its final issue price.

IPO Proceeds 

The company plans to use the net proceeds from the issue for the following purposes: funding capital expenditure for expansion or setting up of manufacturing facilities, repaying loans of the company, and general corporate purposes.

Company profile

EPACK Durable Limited is an Original Design Manufacturer (ODM) of room air conditioners (RAC). The company also manufactures components such as sheet metal parts, injection-molded parts, crossflow fans, and PCBA components that are actively used in the production of RACs. The company has expanded its business into the small domestic appliance (SDA) market, particularly given the seasonal demand for RACs, and is currently developing and producing induction hobs, blenders, and water dispensers.

The company has four production facilities in Dehradun, namely Dehradun Unit I, Dehradun Unit II, Dehradun Unit III, and Dehradun Unit IV, and one manufacturing facility in Bhiwadi, Rajasthan.

Subscription details:

On January 24, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 16.79 times. The public issue received remarkable interest, with the retail category being subscribed 6.50 times, while the DII and NII category reached a subscription rate of 25.59 and 69.37 times respectively.

The IPO price band was Rs 218 to Rs 230, with a face value of Rs 10 per share and a lot size of 65 shares. The total size of the company’s IPO was Rs 640.05 crore, and the final share issue price was fixed at Rs 230 each.

Financial Performance:

Conclusion: 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have been disappointed, as the stock is listed at a discount instead of a premium over its final issue price. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.