Epack Durable's IPO was 80 percent subscribed on the first day of the issue opening on Friday.
The ₹640-crore IPO will now close on Wednesday instead of Tuesday as Monday has been declared a holiday. The IPO has a price range of ₹218 to ₹230 and the market size is 65 shares.
As against the offer of around 1.95 crore shares (less the anchor share), the IPO received offers for 1.56 crore shares.
Offer details
The company has reserved not more than 50 percent of the shares of the public issue for qualified institutional buyers (QIB), not less than 15 percent for non-institutional institutional investors (NII) and not less than 35 percent of the shares in the offer are reserved for retail investors.
While the private investors' share was subscribed 1.24 times, the non-institutional quotas received 0.85 times bids. The institutions still have to bid.
The IPO is a combination of fresh issue of shares worth ₹400 crore and an offer for sale (OFS) of shares worth ₹1.3 crore by promoters, promoter group members and existing shareholders. As part of the OFS, in addition to the promoters, the India Advantage Fund S4 I and the Dynamic India Fund S4 US1 will also sell shares.
Epack Durable, an outsourced design maker of indoor air conditioners, raised ₹192 crore from anchor investors in an initial public offering on Thursday.
Anchor investors
According to a circular uploaded on the BSE website, the company has allotted 83.48 lakh shares to 18 funds at a price of ₹230 apiece, which is also at the upper end of the price range.
Top investors included Societe Generale, Copthall Mauritius Investment Ltd, Integrated Core Strategies (Asia) Pte Ltd, SBI Life Insurance Company, SBI General Insurance Company, HDFC Life Insurance Company, Bajaj Allianz Life Insurance Company, Aditya Birla Sun Life Insurance Company and HDFC Mutual Funds.
Benefit of the means
The proceeds of the new issue will be used to finance capital expenditure for setting up production facilities, paying loans and general corporate purposes.
Epack Durable was founded in 2002 and produces room air conditioners and small household appliances. The company has integrated manufacturing facilities in Dehradun and Bhiwadi, Rajasthan, where it is an Original Design Manufacturer (ODM) that manufactures room air conditioners, components and small home appliances for leading Indian and multinational brands in India.
Axis Capital, Dam Capital Advisors and ICICI Securities are the underwriters of the issue.
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