Interarch Building Products’ IPO has been a big hit, with the offering being oversubscribed 93.41 times by the third day of bidding. The IPO received strong interest from various investor categories, with non-institutional investors subscribing nearly 128.32 times, retail investors 18.93 times, and qualified institutional buyers (QIBs) a whopping 205.41 times.
GMP (Grey Market Premium):
In the grey market, shares of Interarch Building Products are trading at a premium of ₹330, reflecting a 37% increase over the issue price. This premium has remained stable over the past few days.
IPO Price Band:
The IPO price is set between ₹850-900 per share, with investors able to buy shares in lots of 16.
Analyst Recommendations:
Analysts are positive about the IPO, advising investors to subscribe due to the company’s strong manufacturing capabilities, diverse customer base, and consistent financial growth. With a P/E ratio of 15.3x, the IPO is seen as attractively priced.
Other Details:
The funds raised from this IPO will be used for expanding manufacturing facilities, upgrading IT assets, increasing working capital, and general corporate purposes. Interarch Building Products, founded in 1983, has grown into a leading provider of turnkey pre-engineered building (PEB) solutions.
In FY24, the company’s revenue increased to ₹1,293 crore from ₹1,123 crore the previous year, thanks to expanded sales in West Bengal and Telangana. Profit after tax rose to ₹86.26 crore from ₹81.46 crore in FY23. As of March 2024, the company’s order book stood at ₹1,153 crore.
Ambit and Axis Capital are managing the IPO, with Link Intime India serving as the registrar.
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