Interarch Building Products IPO Day 2: GMP, subscription status, review, other details. Apply or not?

Noida-based Interarch Construction Products Ltd, a leader in providing complete pre-engineered steel construction solutions, hit the Indian primary market on 19 August 2024. Bidding for Interarch Construction Products IPO will remain open until 21st August 2024 i.e. Wednesday this week. The company has set a price band for shares that ranges from ₹850 to ₹1,900. The IPO will close on August 21, and the company raised ₹179.49 crore from anchor investors on Friday, August 23.

Retail investors will receive thirty-five percent of the issue size, qualified institutional investors will receive half of it, and non-institutional investors will get the remaining fifteen percent.

Following the minimum of 16 equity shares, investors may bid in multiples of 16 equity shares.

The Interarch Building Products initial public offering (IPO) basis for share allocation is expected to be finalised on Thursday, August 22. The business will commence refunds on the same day, and on Friday, August 23, the shares will be credited to the allottees' demat accounts. Interarch Building IPO shares are likely to be listed on BSE and NSE on Monday, August 26.

Interarch Building Products is a leading provider of pre-engineered steel construction solutions in India, offering integrated facilities for design and engineering, manufacturing, and on-site project management skills for the installation and erection of steel structures.

In the fiscal year 2024, the company's operating revenue climbed to ₹1,293.30 crore from ₹1,123.93 crore, while its profit after tax improved to ₹86.26 crore from ₹81.46 crore.

Interarch Building Products IPO subscription status

The strong response from non-institutional investors continued for Interarch Building Products IPO on the second day of bidding. The response from retail investors was fairly decent. Interarch Building Products IPO subscription status was 10.84 times, as per BSE data.

The portion for non-institutional investors fetched 30.82 times subscription, while the category for retail investors got subscribed 7.31 times. The quota for Qualified Institutional Buyers (QIBs) received 1.47 times subscription, and the employee portion was booked 11.75 times. 

On the first bidding day, the public issue was subscribed to 3.20 times, the retail portion of the book build issue was booked 2.76 times, the NII segment was subscribed 7.85 times, and the QIB portion was filled 0.27 times, as per BSE data.

Interarch Building Products IPO Review

Swastika Investment has given the book build issue a ‘subscribe’ tag, saying, “The brokerage claims that Interarch Building Products Limited, a provider of turnkey pre-engineered steel building solutions, has solidified its place in the industry. The company's wide client base, established execution skills, and integrated manufacturing operations equip it for sustained development. The firm has consistently expanded both top and bottom line, demonstrating strong financial success. However, there may be difficulties due to reliance on a small pool of outside vendors, lack of long-term contracts with clients, and high working capital needs.”

“Despite these factors, the company's IPO, valued at a P/E of 15.3x, appears attractively priced. Considering the company's market leadership, strong financial performance, and reasonable valuation, we recommend subscribing to the IPO,” the brokerage said.

Giving a 'subscribe tag to the IPO, Parth Shah, Research Analyst, StoxBox, said, “The company’s extensive track record, domain expertise, established brand presence, and strong market position, combined with its integrated facilities for design and engineering, manufacturing, and on-site project management for the installation and erection of PEBs, provide a solid foundation for leveraging these growth opportunities. Interarch’s strong market position, integrated operations, and diverse customer base ensure cost-effective and timely project execution, positioning the company for success in the PEB industry. Thus, we recommend market participants subscribe to the issue from a medium to long-term perspective.”

Interarch Building IPO Details

An offer for sale (OFS) of up to 44.48 lakh shares by current promoters and shareholders is included in the offering, coupled with a fresh issuance of shares valued at ₹200 crore. According to the top pricing band, the OFS is worth about ₹400 crore.

The net proceeds of the new issuance will go toward general company objectives, technology enhancements, and capital expenditures.

The book running lead managers are Ambit Private Limited and Axis Capital Limited, while the offer registrar is Link Intime India Private Limited.

Interarch Building Products IPO GMP today

Interarch Building IPO GMP today is +325. This indicates Interarch Building Products share price were trading at a premium of ₹325 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 ₹1,225 apiece, which is 36.11% higher than the IPO price of ₹900.

According to the latest grey market activities over the past 8 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 ₹0 as the lowest to ₹395 as the highest.

'Grey market premium' indicates investors' readiness to pay more than the issue price.'

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.