Interarch Building Products IPO: Should you subscribe as the issue ends today? Check latest GMP, review

Interarch Building Products IPO: The initial public offering (IPO) of Interarch Building Products Ltd has been receiving strong demand led by Non Institutional Investors (NII). Interarch Building Products IPO has been heavily oversubscribed and today is the last day of the bidding process.

Interarch Building Products IPO opened for public subscription on Monday, August 19, and will close today, August 21. The IPO allotment is expected to be finalized on August 22, and the IPO listing date is August 26. The equity shares of Interarch Building Products will be listed on both the stock exchanges, BSE and NSE.

Interarch Building Products IPO price band has been set at ₹850 to ₹900 per share. The IPO is 16 shares and the minimum investment amount required by retail investors is ₹14,400.

The company plans to raise ₹600.29 crore from the book-built issue which is 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.

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.

As today is the last day of the bidding for Interarch Building Products IPO, let us check the subscription status, Interarch Building Products IPO GMP today, and should you apply to the IPO or not.

Interarch Building Products IPO Subscription Status

Interarch Building Products IPO has been subscribed 43.92 times so far on Wednesday, the third and the last day of the bidding process. The public issue received bids for 20.60 crore equity shares as against 46.91 lakh shares on the offer, according to NSE data as of 2:25 pm.

The IPO has been subscribed 15.42 times in the retail category, 52.47 times in the Qualified Institutional Buyers (QIBs) category, and 100.28 times in the Non Institutional Investors (NII) category so far.

Interarch Building Products IPO GMP Today

The equity shares of Interarch Building Products are commanding a decent premium in the grey market today. According to stock market observers, Interarch Building Products IPO GMP today, or grey market premium today, is ₹335 per share.

The GMP today indicates that Interarch Building Products shares are trading at ₹1,255 apiece in the grey market, a premium of 39.5% to the issue price of ₹900 apiece.

Interarch Building Products IPO Review

Given the company’s strong market position, financial performance and reasonable valuations, most analysts have recommended subscribing to the Interarch Building Products IPO. Here’s what analysts said:

“We believe Interarch Building Products Ltd IPO brings a unique opportunity to investors to invest in a leading player in the PEB segment. On valuation at parse, at the upper price band of ₹900/-, the issue is asking for a market cap of ₹1,498 crore. Based on FY 2024 earnings and fully diluted post- IPO paid-up capital, the company is asking for PE of 17.36 which seems reasonably priced by looking at its financial performance and market position. Given the company's integrated manufacturing operations and proven execution, along with a diverse customer base, Interarch is well-positioned to capitalize on the expanding demand for PEBs in India. Hence, we recommend investors to ‘Subscribe’ the Interarch Building Products IPO for a long term perspective,” said Rajan Shinde, Research Analyst at Mehta Equities Ltd.

As the company is the second largest PEB player in India, Shinde believes the market could give Interarch a premium multiple towards its leadership position; this may result in delivering healthy listing gains over above 25% on its issue price.

SBI Securities noted that the company is valued at FY24 P/E multiple of 17.4x at the upper price band based on post issue capital. The company is raising funds to set up a new manufacturing facility, invest in upgrading existing manufacturing facilities, upgrade IT assets, and fund its working capital requirements.

“The Prefabricated Engineered Building (PEB) market in India is expected to grow at a CAGR of 11- 12%, reaching ₹330-340 billion between FY24 and FY29. While comparing the IPO with peer companies, the stock appears to be fairly valued across different valuation and financial parameters. We recommend subscribing to the issue for a long-term investment horizon,” SBI Securities said.

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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.