The IPO for Interarch Building Products, a leading provider of pre-engineered steel construction solutions, begins today (August 19). The Noida-based company has set a price range of ₹850-1,900 per share. The IPO will close on August 21, and the company has already raised ₹179.49 crore from anchor investors on August 23.
Here’s how the shares will be allocated: 35% of the issue is reserved for retail investors, 50% for qualified institutional investors, and 15% for non-institutional investors. Investors can bid for a minimum of 16 equity shares, with bids allowed in multiples of 16.
The basis for share allocation will be finalized on Thursday, August 22. Refunds will be processed on the same day, and shares will be credited to investors’ demat accounts on Friday, August 23. Interarch Building Products shares are expected to be listed on the BSE and NSE on Monday, August 26.
About Interarch Building Products
Interarch Building Products is a major player in India’s pre-engineered steel construction industry. The company offers complete solutions, including design, engineering, manufacturing, and on-site project management. In the fiscal year 2024, Interarch’s revenue increased to ₹1,293.30 crore from ₹1,123.93 crore, and its profit after tax rose to ₹86.26 crore from ₹81.46 crore.
IPO Review: Should You Subscribe?
Swastika Investmart Ltd:
Swastika Investmart highlights Interarch’s strong position in the industry, backed by a broad client base, solid execution skills, and integrated manufacturing. Despite some risks, such as reliance on a small number of suppliers and high working capital needs, the IPO is attractively priced at a P/E ratio of 15.3x. The brokerage recommends subscribing due to the company’s market leadership and strong financial performance.
Dilip Davda (Chittorgarh.com):
Dilip Davda notes that Interarch frequently wins new contracts and is a preferred contractor in the pre-engineered building (PEB) sector. With orders worth ₹1,100 crore as of April 1, 2024, and consistent growth in revenue and profit, he suggests that investors consider the IPO for medium-to-long-term gains.
IPO Details
The IPO includes an offer for sale (OFS) of up to 44.48 lakh shares by current promoters and shareholders, along with a fresh issue of shares worth ₹200 crore. The OFS is valued at approximately ₹400 crore based on the top price band. The funds raised will be used for general corporate purposes, technology upgrades, and capital expenditures.
Ambit Private Limited and Axis Capital Limited are the lead managers, while Link Intime India Private Limited is the offer registrar.
Grey Market Premium (GMP) Update
As of today, Interarch Building Products’ IPO is trading at a premium of ₹325 in the grey market. Considering the highest IPO price of ₹900, the expected listing price is ₹1,225 per share, a 36.11% increase. The GMP has been rising over the past eight sessions, indicating strong demand and a potential for a robust listing.
The grey market premium shows investors are willing to pay more than the IPO price, reflecting strong market sentiment.
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