Epack Durable IPO: The intial public offering (IPO) of Epack Durable is set to open for bidding for retail investors on Friday. The IPO comprises a fresh equity issue of up to Rs 400 crore. It also has an offer for sale (OFS) component of up to 10,437,047 shares.
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Take a look at crucial details about the IPO, including bidding dates, price band, lot size, grey market premium (GMP), and what experts suggest about the Epack Durable maiden issue.
Epack Durable IPO Dates
The bidding window for Epack Durable IPO will remain open for retail investors from January 19-23.
Epack Durable IPO Price Band, Lot Size
The price band for Epack Durable IPO is Rs 218-230. The lot size, or the minimum number of shares a bidder must apply for to be eligible for allotment is 65. At the lower price band of Rs 218, bidding for a minimum of 65 shares will require an investment of Rs 14,170.
Epack Durable IPO GMP Today
According to various observers that track unlisted market activities, the Epack Durable IPO was a commanding a GMP in the range of Rs 15-31 on the upper price band of Rs 230.
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Epack Durable IPO: Should You Buy Or Not?
Choice Broking has given the Epack Durable IPO “Subscribe With Caution” rating.
Here are some reasons the brokerage has given for this call:
1. Market Position and Growth Potential: EPACK Durable is the second-largest domestic ODM in the room air conditioner (RAC) market, which has shown promising growth. The Indian RAC market is expanding, and EPACK is well-positioned to capitalize on this, especially with its plans for capacity expansion and debt reduction from the IPO proceeds. This positions the company to potentially benefit from medium-term growth in the RAC market.
2. Robust Operational Strengths: The company has long-standing customer relationships, a comprehensive product portfolio, and strong product development capabilities. These factors contribute to its competitive edge in the RAC and small domestic appliance (SDA) market.
3. Risks and Challenges: Despite these strengths, EPACK faces several risks. These include a general global economic slowdown, potential adverse government policies, revenue concentration risks, and challenges in expanding its RAC brand and SDA offerings. There’s also the concern about maintaining profitability and competition in the market.4.
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Valuation Concerns: The IPO is priced at a premium compared to its peers, with a P/E multiple higher than the industry average. This might not fully reflect in its profitability margins and return ratios, indicating potentially stretched valuations.
