Interarch Building Products IPO: The initial public offering (IPO) of Interarch Building Products Ltd was subscribed over 10 times on the second day of bidding. The mainboard IPO of the steel construction solutions provider opened for subscription on Monday, August 19, 2024 and will close on August 21, 2024. Interarch Building Products offers 6,672,169 shares.
The offer is being made through the book-building process, wherein not more than 50 per cent shall be available for allocation to qualified institutional buyers (QIBs), and not less than 15 per cent of the net offer shall be available for allocation to non-institutional investors (NIIs). Less than 35 per cent of the total shall be available for allocation to individual retail investors.
The Interarch Building Products IPO was subscribed 10.84 times on the second bidding day. The portion reserved for retail investors was subscribed 7.31 times, while the portion reserved for NIIs was subscribed the highest at 30.82 times. The portion reserved for QIBs was booked 1.47 times. The mainboard IPO received 5,08,66,544 share applications against 46,91,585 shares offered on Tuesday.
Interarch Building Products IPO is a book-built issue worth ₹600.29 crore. It consists of a fresh issue of 0.22 crore shares aggregating ₹200.00 crore and an offer for sale of 0.44 crore shares aggregating ₹400.29 crore by promoter-selling and investor-selling shareholders. The price band for the IPO has been fixed in the range of ₹850 to ₹900 per equity share with a face value of ₹10.
The offer includes a reservation of ₹2 crore for eligible employees and an employee discount of ₹85 per share. At the upper end of the price band, the IPO will fetch ₹600.29 crore. Investors can bid for at least 16 equity shares and in multiples of 16 equity shares thereafter.
Ambit Private Limited and Axis Capital Limited are the book-running lead managers, and Link Intime India Private Limited is the offer's registrar. The equity shares are proposed to be listed on the BSE and NSE.
Interarch Building Products Limited is one of India's leading turnkey pre-engineered steel construction solution providers. It has integrated facilities for design and engineering, manufacturing, and on-site project management capabilities for the installation and erection of pre-engineered steel buildings (PEBs).
As of March 31, 2023, the company had the second-highest installed capacity of 141,000 metric tonnes per year. In the financial year 2023, it also held a 6.1 per cent market share in operating income among integrated PEB players in India.
The company's industrial/manufacturing construction category customers include Grasim Industries Ltd, Berger Paints India Ltd, Blue Star Climatech Ltd, Timken India Ltd, and Addverb Technologies Ltd. In the infrastructure construction category, the company serves InstaKart Services Private Ltd.
Interarch Building Products Limited's revenue increased by 15 per cent, and profit after tax rose by six per cent between the financial year ending with March 31, 2024 and March 31, 2023.
Interarch Building IPO GMP today is +347. This indicates Interarch Building Products share price were trading at a premium of ₹347 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Interarch Building Products share price was indicated at ₹1,247 apiece, which is 38,56 per cent higher than the IPO price of ₹900.
According to the latest grey market activities over the past eight sessions, today's IPO GMP is on the rise and is anticipated to have a robust listing. Investorgain.com analysts report that the GMP ranges from Re 0 as the lowest to ₹395 as the highest.
'Grey market premium' indicates investors' readiness to pay more than the issue price.'
