Epack Prefab Technologies IPO Sees 42% Subscription on Day 2, Grey Market Premium at 8%
Epack Prefab Technologies' Rs 504-crore IPO achieved a 42% subscription rate on its second day. The issue, priced at Rs 194-204 per share, includes a fresh issue of Rs 300 crore and an offer for sale of Rs 204 crore. Retail investors subscribed 47%, non-institutional investors 25%, and qualified institutional buyers 46%. The grey market indicates an 8% premium. The company plans to use the funds for new facility establishment in Rajasthan and expansion in Andhra Pradesh. Epack Prefab, operating in pre-engineered building solutions and packaging products, reported strong financial growth with revenue CAGR exceeding 30% between FY23 and FY25.
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Epack Prefab Technologies' initial public offering (IPO) has garnered significant interest from investors, achieving a 42% subscription rate on its second day of bidding. The Rs 504-crore IPO has seen investors bid for 71.15 lakh shares against the total issue size of 1.76 crore shares.
IPO Details
The IPO is priced in the range of Rs 194-204 per share and comprises a fresh issue worth Rs 300 crore along with an offer for sale of Rs 204 crore. The grey market is showing a positive sentiment towards the issue, with the stock trading at a premium of 8% above the upper price band of Rs 204, indicating an expected listing price of approximately Rs 221 per share.
Subscription Breakdown
- Retail investors: 47% subscription
- Non-institutional investors: 25% subscription
- Qualified institutional buyers: 46% subscription
Company Overview
Epack Prefab Technologies operates in the pre-engineered building solutions and expanded polystyrene packaging products sectors. The company has demonstrated strong financial growth in recent years:
| Financial Year | Revenue (in crore) | Net Profit (in crore) |
|---|---|---|
| FY23 | 656.80 | 24.00 |
| FY25 | 1134.00 | 59.00 |
This represents a compound annual growth rate (CAGR) exceeding 30% for revenue, with net profit more than doubling over the two-year period.
Utilization of IPO Proceeds
The company plans to use the funds raised from the IPO for the following purposes:
- Establishment of a new manufacturing facility in Rajasthan: Rs 103 crore
- Expansion of existing facility in Andhra Pradesh: Rs 60 crore
IPO Timeline
- Closing date: September 26
- Tentative allotment date: September 29
- Expected listing date: September 30
Investors and market watchers will be closely monitoring the performance of Epack Prefab Technologies' IPO as it progresses through its subscription period and moves towards its listing date.
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