- 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.
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
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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
It is the second biggest original design manufacturer (
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.