Epack Prefab Technologies disappoints at market debut; stock lists at 10% discount

Shares of Epack Prefab Technologies made a disappointing stock market debut on Wednesday, October 01 as the pre-engineered and pre-fabricated structures player settled at Rs 183.85 on NSE, a discount of 9.88 per cent over its issue price of Rs 204. Similarly, the stock kicked-off its maiden trading session with a discount of 8.77 per cent at Rs 186.10 on BSE.

As of the listing price, investors, who received a single lot of 73 equity shares, made a loss of Rs 1,470.95 on their investment of Rs 14,892. Similarly, HNI investors, who received 14 lots consisting of 1,022 equity shares, made a loss of Rs 20,593.3 on their investment of Rs 2,08,488.

Listing of Epack Prefab Technologies has sharply below the expectations. Ahead of its debut, Epack Prefab Technologies was commanding no grey market premium in the unofficial market, suggesting a flat listing for the investors. The grey market premium stood around Rs 15-17 per share, when the issue was open for bidding.

The IPO of Noida-based Epack Prefab Technologies was open for bidding between September 24 and September 26. It had offered its shares in the price band of Rs 194-204 per share with a lot size of 73 shares. The company raised a total of Rs 504 crore via IPO, which was entirely a fresh share sale of 2,47,05,882 equity shares.

The IPO of Epack Prefab was overall subscribed only 3.07 times fetching nearly 1.83 lakh applications. The allocation for the qualified institutional bidders (QIBs) was subscribed 5.10 times, while the portion for non-institutional investors' (NIIs) was subscribed 3.68 times. However, employees and retail investors' quota was booked at 1.69 times.

Incorporated in February 1999, Noida-based Epack Prefab Technologies engaged in turnkey pre-engineered steel buildings and prefabricated structures, handling design, fabrication, installation for industrial, institutional, and commercial sectors. It also manufactures EPS thermocol blocks, sheets, and shaped packaging items for insulation and packaging solutions.

Brokerage firms were mostly positive on the issue, suggesting to subscribe to the issue. Monarch Networth Capital and Motilal Oswal Investment Advisors served as the book running lead managers of Epack Prefab Technologies, while Kfin Technologies was the registrar of the issue.