Epack Prefab Technologies -Share list with a 10% discount on IPO price on exchanges

Shares of Epack Prefab Technologies debuted on Wednesday with a discount on his IPO price. On the NSE, the shares opened at RS 183.85, with 9.87% compared to the issue price of RS 204, while it was mentioned on the BSE on RS 186.10, a discount of 8.73%. The offer came under the expectations of the Gray Market, which had predicted a flat debut. Prior to the list, the share traded with a GMP of 0%.

The IPO of RS 504 Crore was a mix of a new number of RS 300 Crore and an offer for sale of RS 204 Crore. The issue was opened on September 24 and was concluded on September 26 and received a subscription of 3.1 times in general. Institutional investors showed the strongest interest and subscribed 5.1 times their part, while non-institutional investors subscribed 3.8 times. The retail segment subscribed 1.7 times and reflected cautious participation of small investors.

Company Snapshotepack Prefab is a leading player in pre-developed steel buildings and prefabricated structures that offer Turnkey solutions that include design, manufacture and installation.

The company also produces EPS thermocol blocks and packaging articles that are used in construction and insulation. The three production facilities have a combined capacity of more than 1.26 Lakh MTPA for pre -developed buildings and 510,000 square meters of sandwich insulated panels.

Financial

Epack Prefab has reported healthy growth on Financial Front. The turnover rose 26% on an annual basis to RS 1,140 Crore in FY25, while the profit after the tax rose 38% to RS 59.3 Crore. The margins also improved, with EBITDA that rises to RS 117.8 Crore.

The company reported a return on equity of 22.7% and maintained a comfortable debt / equity ratio of 0.15, which was a reflection of controlled leverage. Nevertheless, the price of the publication after the issued appreciation comes to around 34.5 times, which analysts say it looks expensive in view of the competitive dikes of the industry. The IPO yield will be used to set up a new production facility in Rajasthan, which extends the capacity in the Andhra Pradesh unit and repaying loans. While the company has a strong order book of almost RS 917 Crore and enjoys a niche position in the pre-fab segment, analysts believe that aggressive prices leave little room for the short term. Also read: LG Electronics India IPO: Company sets Price Band at RS 1,080-1.140 for RS 11,607 Crore issue. Check details

Investors will see how the company is carrying out its expansion plans and maintains margins in a fragmented and cyclic building -related market.

(Disclaimer: recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)