EPACK Durable IPO subscription date extended. GMP, review, apply or not?

Meanwhile, after the extension of EPACK Durable IPO date, grey market sentiment has turned positive regarding the book build issue. According to stock market observers, EPACK Durable share price is available at a premium of ₹31 in the grey market today.

As per the market observers, EPACK Durable IPO grey market premium (GMP) today is ₹31, which is ₹5 higher than the weekend GMP of ₹26. Market observers said that the trend reversal on Dalal Street after a heavy sell-off at the beginning of the previous week could be the possible reason for the rise in grey market sentiments regarding EPACK Durable IPO. They went on to add that positive global market sentiments may further improve Indian stock market bias, which is a healthy sign for the book build issue.

After day one of bidding, the book build issue got subscribed 77 per cent. However, after the announcement of the trading holiday on 22nd January 2024, the EPACK Durable IPO subscription date has been extended by one day till 24th January.

On whether one should apply for the public issue or not, Arihant Capital said, “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.”

BP Equities has also given a ‘subscribe’ tag to the book build issue saying, “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.”

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.

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Published: 22 Jan 2024, 12:44 PM IST