Epack Durbales IPO fully subscribed on Day 2. Check GMP and other details
Epack Durables was fully subscribed on Tuesday, the second day of the bidding process. The overall subscription stood at 2.6 times so far, driven by heavy bidding from non-institutional and retail investors, whose categories were booked 4.5 times and 2.9 times, respectively. The issue closes on January 24.
Want to take exposure to a sector which grows much faster than GDP
In the unlisted market, Epack Durbales GMP is around Rs 28, compared with an IPO price of Rs 230.
About 50% of the offer is reserved for qualified institutional buyers (QIBs), 35% for retail investors and 15% for non-institutional investors.
Ahead of the IPO opening, the company has raised Rs 192 crore from anchor investors, under which leading funds including Society Generale, Copthall among others participated.
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Epack Durable is the second largest room air conditioner original design manufacturer (ODM) in India in terms of number of units in FY23. Its current product portfolio comprises room air conditioners where it designs and manufactures complete RACs, small domestic appliances and components.
The company strengths include its long-standing relationships with top customers, advanced vertically integrated manufacturing and robust product development capabilities.
Fresh proceeds from the IPO will be used to fund capital expansion plans and repay part of its outstanding debt.
Epack Durables IPO review
Analysts believe the company prioritizes continuous product portfolio expansion, which also shows in its consistent financial performance.
«At the upper band, the issue is valued at an EV/EBITDA of 20.2x based on FY23 EBITDA and PE of 51.4x based on FY23 EPS of Rs 4.5. We are
