EPACK Durable IPO Day 3: GMP, subscription status, other details. Should you apply as bidding ends today

EPACK Durable IPO: Bidding for the initial public offering (IPO) of EPACK Durable Limited is going to end today. So, investors have just one day in hand to apply for the public offer. As per the EPACK Durable IPO subscription status, the public issue has been subscribed 3.68 times in the first two days of bidding. Meanwhile, shares of EPACK Durable Limited have remained steady in the grey market despite a heavy sell-off on Tuesday. According to stock market observers, EPACK Durable share price is available at a premium of ₹31 in the grey market today.

EPACK Durable IPO GMP today

As per the stock market observers, EPACK Durable IPO grey market premium (GMP) today is ₹31, which is ₹4 below its Tuesday GMP of ₹35. Observers said that an extensive sell-off across indices on Tuesday could be the possible reason for the fall in EPACK Durable IPO GMP. However, they said that in the first two days of bidding, the book build issue has been over-subscribed, and it is expected to attract the attention of investors when bidding opens on Wednesday. They said that a 13 per cent premium in such a market scenario may attract the attention of primary market investors and EPACK Durable IPO subscription status may shoot up as the day unfolds.

EPACK Durable IPO subscription status

In the first two days of bidding, the book build issue has been subscribed 3.68 times to its original offer. Its retail portion got subscribed 3.81 times, the NII portion of the public issue got subscribed 7.90 times whereas the QIB portion of the public offer got subscribed 0.17 times.

By 3:36 PM on day 3 of bidding, the book build issue has been booked 15.72 times whereas its retail portion has been subscribed 5.94 times. The NII portion of the public issue has been booked 27.68 times while its QIB segment got subscribed 24.12 times.

EPACK Durable IPO review

Giving the 'apply' tag to the book build issue, BP Equities said, "On the financial performance front, the company’s Revenue/EBITDA/PAT grew at a CAGR of 44.6%/56.2%/102.5% during the FY2021-23 period. On the upper price band, the issue is valued at a P/E of 49.6x based on FY2023 earnings which we feel is fairly valued and is lower than its comparable peers. We, therefore, recommend a “Subscribe” rating to the issue from a medium to long-term perspective."

Arihant Capital has also given a 'subscribe' tag to the public issue saying, "EPACK Durables 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 IPO proceeds of INR 2,300mn would be used for capacity expansion would lead to incremental business going forward. The increase in wallet share from existing customers through cross-selling and expanding the customer base will increase the business going forward. The new product launches in the appliances portfolio would reduce the business fluctuation due to seasonality going forward. At the upper band of INR 230, the issue is valued at an EV/EBITDA of 20.2x based on FY23 EBITDA and PE of 51.4x based on FY23 EPS of INR 4.5. We are recommending “Subscribe for Long Term” for this issue."

Choice Broking has also given a 'subscribe' tag to the book build issue while Indsec Securities and Swastika Investmart have given a 'May Apply' tag to the public issue. However, InCred Equities has given an 'Avoid' tag to the book build offer.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.