EPACK Durable Shares Open at a Discount on NSE

EPACK Durable Ltd made its stock market debut with a disappointing start on Tuesday. The shares of the ODM (Original Design Manufacturer) player opened at a 4% discount on the National Stock Exchange (NSE), listing at ₹221 per share. This was 3.9% lower than the IPO issue price of ₹230. On the Bombay Stock Exchange (BSE), the stock opened at ₹225 per share, down 2.17% from the IPO price.

EPACK Durable’s initial public offering (IPO), which raised ₹640.05 crore, witnessed steady subscription levels throughout its three-day period. The IPO received a positive response from both retail and non-institutional investors, with the subscription status reaching 16.37 times on the last day.

Analysts had predicted that the EPACK Durable share price would range between ₹225 to ₹235 per share. However, the weak debut indicates a different market sentiment.

The IPO consisted of a fresh issue worth ₹400 crore, along with an offer-for-sale (OFS) of 1.04 crore equity shares. The net proceeds from the new issue will be utilized for various purposes, including financing capital expenditures, loan repayment, and general corporate needs.

The OFS includes the sale of 51.75 lakh shares valued at ₹119 crore by the promoters and other investors. Promoters such as Bajrang Bothra, Laxmi Pat Bothra, Sanjay Singhania, Ajay DD Singhania, Pinky Ajay Singhania, Preity Singhania, Nikhil Bothra, Nitin Bothra, and Rajjat Kumar Bothra are part of the selling group.

The book running lead managers for the IPO are Axis Capital Limited, DAM Capital Advisors Limited, and KFin Technologies Limited is the registrar.

EPACK Durable’s IPO grey market premium (GMP) has been +5, indicating a premium of ₹5 on the shares in the grey market. Considering this, the estimated listing price was projected to be ₹235 per share, higher than the IPO price. However, the current trend suggests a lower GMP.

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