EPACK Durable IPO: The conclusion of EPACK Durable Limited’s initial public offering (IPO), the second-largest room air conditioner (RAC) original design manufacturer (ODM) in India, has stirred a blend of excitement and skepticism. Closing after a three-day subscription window, the IPO has garnered attention with both oversubscription and divergent opinions among analysts.

EPACK Durable IPO

Overall Subscription

The IPO witnessed an overall subscription of 2.76 times, surpassing the minimum requirement of 90%.

Category-wise Response

• Qualified institutional buyers (QIBs) subscribed 4.41 times.
• Non-institutional investors (NIIs) subscribed 1.27 times.
• Retail investors subscribed 2.42 times.

While overall oversubscription is evident, the varied response across investor categories suggests a degree of caution among some segments.

Analyst Perspectives

Positive Views

Some analysts interpret the oversubscription as a vote of confidence in EPACK Durable’s robust market position and growth potential. Factors such as the company’s emphasis on innovation, backward integration, and expansion plans are highlighted as positive indicators.

Cautious Stance

Others remain cautious, expressing concerns about the company’s valuation, recent profit decline, and the competitive landscape in the RAC market. The Chittorgarh.com rating for the IPO is “Avoid,” with a caveat for active risk-seekers. In contrast, Alice Blue offers a more positive outlook, emphasizing medium- to long-term rewards.

Market Performance and Listing

Share Price Movement

Despite the oversubscription news, EPACK Durable’s share price experienced limited upward momentum, remaining relatively flat on the closing day.

Listing Date

The shares are slated to list on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on January 30, 2024.

Conclusion

EPACK Durable IPO: While the oversubscription indicates a certain level of investor interest, the divergence in analyst opinions signals underlying concerns. As the shares prepare to list, potential investors are urged to conduct a meticulous evaluation of EPACK Durable’s financials, growth prospects, and market risks.

FAQs

Q1: What is the overall subscription for EPACK Durable’s IPO?

A1: The IPO was oversubscribed 2.76 times, surpassing the minimum requirement.

Q2: How did different investor categories respond to the IPO?

A2: QIBs subscribed 4.41 times, NIIs 1.27 times, and retail investors 2.42 times.

Q3: What are the factors contributing to positive views on EPACK Durable?

A3: Positive factors include the company’s strong market position, growth potential, and focus on innovation.

Q4: Why do some analysts maintain a cautious stance on the IPO?

A4: Concerns about the company’s valuation, recent profit decline, and the competitive RAC market landscape contribute to a cautious stance.

Q5: When are EPACK Durable’s shares expected to be listed?

A5: EPACK Durable’s shares are scheduled to list on the BSE and NSE on January 30, 2024.