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The initial public offering of Epack Durable will close today. The IPO was subscribed .3.67 times at the of day 2 of issue opening on Tuesday, thanks mainly to high net worth individuals and retail investors.
The ₹640-crore IPO IPO comes with a price band of ₹218-230 and the market lot is 65 shares.
As against on offer of about 1.95 crore shares (net off anchor portion), the IPO received bids for 7.33 crore shares.
Bid details
The company has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for non-institutional Institutional Investors (NII), and not less than 35 per cent of the offer is reserved for retail investors.
While retail investors’ portion was subscribed 3.80 times, quota for non-instituions received bids for 7.90 times. Institutions portion was subscribed 17 per cent or 0.17 time.
The IPO is a combination of fresh issuance of equity shares worth ₹400 crore and an offer-for-sale (OFS) of 1.3 crore equity shares by promoters, promoter group members, and existing shareholders. Under the OFS, India Advantage Fund S4 I and Dynamic India Fund S4 US1 will be offloading shares, apart from promoters.
Epack Durable, an outsourced design manufacturer of room air conditioners, on Thursday mobilised ₹192 crore from anchor investors as part of IPO exercise.
Anchor investors
The company has allotted 83.48 lakh equity shares to 18 funds at ₹230 apiece, which is also the upper end of the price band, according to a circular uploaded on the BSE website.
Among the marquee 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 Fund.
Utility of funds
Proceeds of the fresh issue will be utilised for funding capital expenditure for the setting up of manufacturing facilities, payment of loans, and general corporate purposes.
Founded in 2002, Epack Durable manufactures room air conditioners and small household appliances. It has integrated manufacturing facilities in Dehradun and Bhiwadi, Rajasthan where it manufactures room air conditioners, components, and small household appliances for leading Indian and MNC brands in India as an original design manufacturer (ODM).
Axis Capital, Dam Capital Advisors, and ICICI Securities are the book-running lead managers to the issue.
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