Epack Durable IPO Defies Expectations: Lists at Discount Despite 16.37 Times Oversubscription

Epack Durable's IPO is listed at a 3.9% discount, opening at Rs 221 and Rs 225 on NSE and BSE, against the Rs 230 issue price. Oversubscribed 16.37 times, funds will enhance manufacturing in Rajasthan and Andhra Pradesh and repay loans.
Epack Durable IPO Defies Expectations: Lists at Discount Despite 16.37 Times Oversubscription

Epack Durable, in its market debut, began trading with a modest start, listing at a discount of 3.9% from its IPO price on January 30. The shares opened at Rs 221 on the National Stock Exchange (NSE) and Rs 225 on the Bombay Stock Exchange (BSE), lower than the IPO issue price of Rs 230.

Before its official listing, the stock was trading at a 2% premium in the grey market, an informal market where shares are traded before their official allotment in an IPO and up until the day of listing. Investors often monitor this grey market premium (GMP) as an indicator of the potential listing price.

The IPO of Epack Durable saw a positive reception from investors, with the issue being oversubscribed by 16.37 times. It attracted bids for 32.7 crore shares compared to the available issue size of 1.99 crore shares.

High net-worth individuals (HNIs) showed significant interest, subscribing 28.1 times their share allocation. Retail investors also showed keen interest, subscribing 6.29 times their reserved share portion. The segment reserved for qualified institutional buyers was subscribed 25.5 times.

The IPO, which was open for subscription from January 19 to January 24, had a price range set at Rs 218-230 per share.

The IPO, valued at Rs 640.05 crore, consisted of a fresh issue of 1.73 crore shares amounting to Rs 400 crore and an offer for sale of 1.04 crore shares valued at Rs 240.05 crore.

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The company will utilize the funds raised from the IPO to expand manufacturing capabilities in Bhiwadi, Rajasthan, and Sri City in Andhra Pradesh. Additionally, the funds will be allocated for purchasing equipment for the Bhiwadi plant and for the repayment or prepayment of loans.

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