Interarch Building Products IPO Ends Today: Last Chance to Subscribe! Check GMP, Reviews, and More

The initial public offering (IPO) of Interarch Building Products Ltd is closing today, August 21. This IPO has seen strong interest, especially from Non-Institutional Investors (NII), and has been subscribed over 10 times by the second day of bidding.

IPO Details and Subscription Timeline

Interarch Building Products’ IPO opened for public subscription on Monday, August 19, and will end today, August 21. The allotment of shares is expected to be finalised on August 22, and the shares will be listed on the stock exchanges (BSE and NSE) on August 26.

The price range for the IPO is set between ₹850 to ₹900 per share. Retail investors need to invest a minimum of ₹14,400 to participate, as the IPO lot size is 16 shares.

The company aims to raise ₹600.29 crore through this IPO, which includes a fresh issue of 22.22 lakh equity shares worth ₹200 crore, and an offer-for-sale (OFS) of 44.47 lakh shares amounting to ₹400.29 crore.

Subscription Status

As of the second day, Interarch Building Products’ IPO has been subscribed 10.83 times, with bids received for 5.08 crore equity shares compared to 46.91 lakh shares on offer, according to NSE data.

The breakdown of subscriptions is as follows:

• Retail category: 7.30 times
• Qualified Institutional Buyers (QIBs) category: 1.47 times
• Non-Institutional Investors (NII) category: 30.81 times

Grey Market Premium (GMP) Today

The grey market for Interarch Building Products’ shares is showing a premium of ₹335 per share today. This means that in the grey market, the shares are trading at ₹1,255 each, a 39.5% premium over the issue price of ₹900.

IPO Review: Should You Invest?

Analysts are generally positive about the Interarch Building Products IPO. Here’s what they have to say:

Rajan Shinde, a Research Analyst at Mehta Equities Ltd, believes the IPO is attractively priced, considering the company’s financial performance and market position. He highlights that Interarch Building Products is a leading player in the Prefabricated Engineered Buildings (PEB) sector, which positions it well to benefit from the growing demand for PEBs in India. He recommends subscribing to the IPO for long-term gains.

SBI Securities also supports this view, noting that the company is valued reasonably, with a price-to-earnings (P/E) ratio of 17.4x at the upper price band. The funds raised will be used for setting up a new manufacturing facility, upgrading existing ones, enhancing IT assets, and meeting working capital needs. With the PEB market expected to grow at an 11-12% CAGR between FY24 and FY29, SBI Securities suggests subscribing to the IPO for long-term investment potential.

Conclusion

With strong demand, especially from NIIs, and favourable reviews from analysts, the Interarch Building Products IPO appears to be a promising opportunity for investors. If you’re considering subscribing, today is the last day to do so.