Shares of Epack Durable had a rather dull beginning at the bourses on Tuesday. The stock of the air-conditioner maker tumbled 9.70 per cent to ₹207.70 on the BSE against the issue price of ₹230. The stock was listed 2.17 per cent lower at ₹225 and slipped further by 10.56 per cent to ₹205.70. On the NSE, it tanked 9.5 per cent to ₹208.15.
Sadly for investors who had invested in the IPO with the aim of reaping listing gains, the stock did not cross the IPO price during the day.
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The issue was subscribed 16.37 times, thanks to high net worth individuals and qualified institutional buyers (QIBs). The ₹640-crore issue comprises fresh issue worth ₹400 crore and an offer-for-sale worth ₹240 crore by the promoters, promoter group members and existing shareholders.
Proceeds of the fresh issue will be used for funding capital expenditure towards setting up of manufacturing facilities, payment of loans, and general corporate purposes.
Epack Durable had mobilised ₹192 crore from anchor investors as part of the IPO exercise who included Societe Generale, Copthall Mauritius Investment, Integrated Core Strategies (Asia) Pte, 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.