Interarch Building Products IPO Listing: The equity shares of Interarch Building Products are set to make their stock market debut today as the company has fixed the listing date after the conclusion of its initial public offering (IPO). Interarch Building Products IPO listing date has been fixed for 26 August 2024. According to a notification on the stock exchanges, Interarch Building Products shares will be listed and to the dealings on the BSE and NSE effective Monday, 26 August 2024.
“Trading Members of the Exchange are hereby informed that effective from Monday, August 26, 2024, the equity shares of Interarch Building Products Limited shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities,” a BSE notification said.
Interarch Building Products shares will be available for trading from 10:00 am from today. The stock will be a part of the Special Pre-open Session (SPOS).
Ahead of the Interarch Building Products IPO listing, the grey market has been bullish on the Interarch Building Products shares. Here’s what Interarch Building Products IPO GMP shows:
Interarch Building Products IPO GMP today, or grey market premium today, is ₹360 per share, according to stock market observers. This indicates that the Interarch Building Products shares are trading higher by ₹360 apiece than their issue price in the grey market. Stock market experts believe that the higher Interarch Building Products IPO GMP can be attributed to the strong response to the public offer by primary market investors. The sentiment in the secondary market also remains robust.
Considering the issue price and the IPO GMP today, the Interarch Building Products IPO listing price is estimated to be at a premium of ₹360. This means that the estimated Interarch Building Products share listing price is ₹1,260 per share, a premium of 40% to the issue price of ₹900 per share.
It is to be noted that the grey market premium is just an indicative price and should not be considered for investment decisions.
Analysts expect a strong debut of Interarch Building Products shares today led by strong demand for its IPO.
“With the issue set to list into the bourses on Monday, the bidding for Interarch Building Products Ltd saw overwhelming interest from investors, with the issue being subscribed over 90 times. We expect the issue to list at a premium of 37% on the back of robust demand it has garnered amongst the participants,” said Akriti Mehrotra, Research Analyst, StoxBox.
With a robust market position, diverse and loyal customer base, and a proven track record of quality and efficiency, Interarch is well-positioned to continue its growth trajectory and maintain its leadership in the PEB industry. Interarch’s strong market position, integrated operations, and diverse customer base ensure cost-effective and timely project execution, thereby positioning the company for success in the PEB industry, Mehrotra added.
“We thus advise the participants who have been allotted Interarch Building Products shares to hold them from a medium to long term perspective,” she said.
Amit Goel, Co-Founder and Chief Global Strategist at Pace 360 believes the Interarch Building Products IPO appears fully priced, based on the FY24 earnings.
“We expect a listing at around ₹1,260 - 1,280 per share, resulting in a listing gain of around 40%. We advise investors to record short-term profits following the IPO,” Goel said.
Prashanth Tapse, Sr VP Research – Research Analyst at Mehta Equities Ltd noted that Interarch Building Products received a healthy response from the day one to the last day of the issue from all types of investors.
“We believe the investor demand has come considering reasonable valuations and an opportunity to invest in a leading player in PEB segment with strong market position, ranking 3rd in operating revenue with the 2nd largest installed capacity and commands a healthy market share in the organised markets. Considering all the parameters subscription demand and market sentiments, it is indicating a healthy room for listing gain in the range of ~25-30% and above against the issue price of ₹900 per share and we continue to recommend allotted investors to hold as Interarch is well-positioned for sustained growth for long term,” Tapse said.
On valuation parse at the upper price band of ₹900, the issue was reasonable priced by looking at it financial performance and market position and despite being capital incentive business model we believe the market could give Interarch a premium multiple towards its leadership position and sector agnostic demand and growth triggers; this may result in delivering healthy post listing gains also, he added.
Interarch Building Products IPO opened for public subscription on Monday, August 19, and closed on Wednesday, August 21. The IPO allotment was finalized on August 22, and the IPO listing date is today, August 26.
Interarch Building Products IPO price band was ₹850 to ₹900 per share. The company raised ₹600.29 crore from the book-built issue which was a combination of fresh issue of 22.22 lakh equity shares worth ₹200 crore and an offer-for-sale (OFS) component of 44.47 lakh shares aggregating to ₹400.29 crore.
Interarch Building Products IPO was subscribed 93.53 times in total as it received bids for 42.88 crore equity shares as against 46.91 lakh shares on the offer, according to NSE data.
Ambit Private Limited and Axis Capital are the book running lead managers of the Interarch Building Products IPO, while Link Intime India Private Ltd is the IPO registrar.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
