EPACK Durable falls 9.7% below its issue price on debut day

• The stock listed at ₹207 as compared to its issue price of ₹230, on debut day.
• Its market capitalisation is at ₹1,989 crore, according to Bombay Stock Exchange.

Air conditioner manufacturer EPACK Durable fell 9.7% below its issue price on debut day on Tuesday. The stock closed at ₹207 as compared to its issue price of ₹230. Its market capitalisation is at ₹2,155 crore according to BSE.

The benchmark indices too traded in the red on Tuesday, as Sensex shed over 800 50 points, and Nifty fell by 205 points. The grey market was expecting 2% listing gains from the stock.

“EPACK listing was below our expectations due to market sentiments. We continue to remain positive on the company business model. EPACK holds a strategic long standing relationship position in the growing Indian Refrigeration and Air conditioning (RAC) industry and also extended relationships provide opportunities for cross-selling,” said Prashanth Tapse, senior VP of research at Mehta Equities. He recommends investors to hold on to the stock with a long-term perspective.

The ₹640 crore initial public offer (IPO) was subscribed 16 times over the shares on offer. It has mobilized ₹192 crore from anchor investors ahead of its IPO from investors like Societe Generale, Copthall Mauritius Investment, SBI Life Insurance Company and more.

The year of 2023 has been good market debuts with many stocks providing investors with positive listing gains.

Here are the listing gains of the last few market debuts


The issue is a combination of a fresh issue and an offer for sale. It intends to use net proceeds from the fresh issue as capex for new or expansion of manufacturing facilities, loan payment, and general corporate purposes.

The company is an outsourced design manufacturer of room air conditioners. Some of its customers include Voltas, Blue Star, Daikin, Haier, Godrej and Boyce and more.

It is the second biggest original design manufacturer (ODM) of room air conditioners in India, based on the number of units produced in FY23, as per a Frost & Sullivan report, it says in the DRHP.

It has three manufacturing facilities in Dehradun, Uttarakhand; Bhiwadi in Rajasthan; and Sricity in Andhra Pradesh.

Apart from indoor units, outdoor units and window air conditioners; it manufactures mixer grinders, water dispensers. Moreover, it aims to expand its portfolios to other consumer goods like hair dryers, kitchen chimneys, domestic air coolers, tower fans and more.

“EPACK Durable has a 24% market share in terms of domestically manufactured units by ODM in FY23. The plants are vertically integrated and automated would improve the margins going forward. The increase in wallet share from existing customers through cross-selling and expanding the customer base will increase the business going forward,” said a note by Arihant Capital which gave it a ‘subscribe for long-term’ rating.