Interarch Building Products IPO Day 1: GMP, subscription status, review, other details. Apply or not?

The initial public offering of Noida-basedInterarch construction Products Ltd, whichis a leader in providing complete pre-engineered steel construction solutions, kick-starts today (August 19).The company has set a price bandfor shares that ranges from ₹850-1,900. The IPO will close on August 21 and the company raisedRs 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 Review

Swastika Investmart Ltd

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.

Dilip Davda

The firm is receiving frequent contracts for new projects and has the status of most desired PEB contractor, according to Dilip Davda, contributing editor at Chittorgarh.com. Both its top and bottom lines showed growth. As of April 1, 2024, it has orders worth ₹1,100 crore in stock. FY24 results suggest that the problem is priced fully. Funds may be parked by investors for a medium-to-long duration.

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.