EPACK Durable Limited IPO: GMP Hints Strong Listing; Check Latest Subscription Status Here

EPACK Durable Limited, the second-largest room air conditioner (RAC) original design manufacturer (ODM) in India, has launched its Initial Public Offering (IPO). The IPO, which opened for subscription on January 19, 2024, is set to continue accepting bids until January 23, 2024. Investors and market enthusiasts are closely watching this development, given the company's standing in the air conditioner manufacturing sector and its foray into the small domestic appliance (SDA) market.

EPACK Durable IPO has already garnered attention in the grey market, where shares are trading at a premium of Rs 33, according to market observers. The Grey Market Premium (GMP) serves as an early indicator of market sentiment, showcasing investor confidence in the company's potential. This premium has translated to an estimated listing price of Rs 261 per share, reflecting a robust 13.48% increase from the upper end of the IPO price band at Rs 230 per share.

As of 12:25 pm on the first day of bidding, the IPO has been subscribed 0.31 times overall, with the retail portion seeing a subscription of 0.53 times and the Non-Institutional Investors (NII) portion at 0.19 times. The IPO, with a lot size of 65 shares and a price band of Rs 218 to Rs 230 per equity share, aims to raise Rs 640.05 crore. The company plans to utilize the net proceeds for capital expenditures, loan repayment, and general corporate purposes.

EPACK Durable stands as a major player in the air conditioner manufacturing sector, boasting the title of the second-largest RAC ODM in India based on fiscal 2023 production numbers. Apart from RACs, the company has strategically diversified into the Small Domestic Appliance (SDA) market, manufacturing products such as induction hobs, blenders, and water dispensers. The company has specialized research and development facilities in Greater Noida, Bhiwadi, and Dehradun.

The IPO structure comprises a combination of a fresh issue of 1.74 crore shares, amounting to Rs 400 crore, and an Offer for Sale (OFS) of 1.04 crore shares, totalling Rs 240.05 crore. The promoters will sell 51.75 lakh shares valued at Rs 119 crore through the OFS. EPACK Durable has reserved 50% of the shares for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for retail investors.

The basis of allotment for EPACK Durable IPO is set to be finalized on January 24, with the company initiating refunds on January 25. Shares will be credited to the demat accounts of allottees on the same day as the refund. The listing of EPACK Durable on both BSE and NSE is expected to occur on January 29, 2024.

Axis Capital Limited, DAM Capital Advisors Limited, and ICICI Securities Limited are leading the IPO as the book-running lead managers, while KFin Technologies Limited serves as the official registrar. These key players play crucial roles in overseeing the IPO process.

EPACK Durable faces competition from listed peers such as Amber Enterprises India Ltd, PG Electroplast Limited, Dixon Technologies (India) Ltd, and Elin Electronics Ltd. According to the Red Herring Prospectus (RHP), the company's IPO GMP today stands at Rs 31, signifying a robust demand in the grey market.

Market participants are closely monitoring the subscription levels, grey market trends, and overall market sentiment as EPACK Durable Limited's IPO continues to unfold. The company's strategic diversification, strong financials, and customer-focused approach contribute to the buzz surrounding its market debut.