IPO Driven by substantial demand from non-institutional and qualified institutional investors, Interarch Building Products’ IPO was booked 93.41 times on the third day of the bidding process.
Nearly 128.32 subscriptions were made in the NII investor category, while 18.93 subscriptions were made in the retail investor category. The issue’s share reserved for qualified institutional buyers (QIBs) was booked 205.41 times.
GMP for Interarch Building Products
The company’s shares are trading at a 37% premium to the issue price on the unlisted market, with a GMP of Rs 330, which hasn’t changed in the last two days.
Price range for Interarch Building Products’
IPO Investors can place a bid for up to 16 shares in a single lot at the IPO, which is priced between Rs 850 and Rs 900 per share.
 Review of Interarch Building Products’
IPO Analysts recommended that investors subscribe to the issue since the company is well-positioned for future expansion due to its integrated manufacturing operations, demonstrated execution skills, and wide range of clientele.
“IBPL has demonstrated strong financial success, as seen by steady top- and bottom-line growth. The IPO is reasonably priced, with a P/E ratio of 15.3x. We advise subscribing to the IPO in light of the company’s market leadership, solid financial performance, and fair pricing,” stated Swastika Investment.
The money raised from the new issuance will be used to pay for additional working capital needs, general corporate objectives, upgrading of different manufacturing facilities, supporting investments in information technology assets, and capital expenditures related to the project’s setup.
Since its incorporation in 1983, Interarch Building Products has developed into a turn-key provider of PEB solutions, with integrated facilities for design and engineering, manufacturing, and on-site project management capabilities for the installation and erection of PEBs supplied by the company. This allows the company to offer its clients end-to-end solutions.
During the fiscal year 2024, the company’s revenue from operations increased to Rs 1,293 crore from Rs 1,123 crore the year before. This was mainly because the company increased the revenue from pre-engineered building contracts and the sale of products by diversifying into new industries and expanding its sales and marketing presence in Telangana and West Bengal.
From Rs 81.46 crore in the Financial Year 2023 to Rs 86.26 crore in the Financial Year 2024, profit after tax increased. The order book of Interarch Building Products was valued at Rs 1,153 crore as of March 2024. The issue’s book running lead managers are Ambit and Axis Capital, and the offer’s registrar is Link Intime India.
