Interarch Building Products Shines on Market Debut with 44% Premium Over IPO Price
Interarch Building Products enjoyed a successful stock market debut on August 26, with its shares listing at Rs 1,299 each, reflecting a substantial 44.3 percent premium over the IPO issue price of Rs 900. This debut surpassed grey market expectations, where shares had been trading at a 35.5 percent premium before the official listing.
Key Highlights
- Debut Performance: The shares of Interarch Building Products made a strong entry into the market, achieving a notable premium of 44.3 percent over the IPO price. This was higher than the grey market’s anticipated 35.5 percent premium.
- IPO Subscription: The IPO was met with significant investor enthusiasm, achieving a subscription rate of 93.53 times on the final bidding day. Investors demonstrated a high level of interest, with 43.88 crore equity shares subscribed, greatly exceeding the offer size of 46.91 lakh shares.
- Investor Breakdown:
- Qualified Institutional Investors (QIIs): Subscribed 205.41 times their allocated portion.
- High-Net-Worth Individuals (HNWIs): Purchased 128.42 times their allotted quota.
- Retail Investors: Subscribed 19.11 times their reserved portion.
- Employees: Demonstrated strong interest, bidding 24.19 times their quota, with Rs 2 crore worth of shares offered to them at a discount of Rs 85 per share from the final issue price.
- Company Overview: Interarch Building Products specializes in pre-engineered buildings (PEBs), offering two main services:
- Turnkey PEB Contracts: Comprehensive management from design to on-site installation.
- PEB Products: Sale of items such as metal ceilings, corrugated roofing, steel structures, and light gauge framing systems.
- Fundraising Goals: The company aims to raise Rs 200 crore through a fresh issue and an additional Rs 400.29 crore via an offer-for-sale (OFS), with shares priced between Rs 850-900.
Important Points
Share Pricing: Rs 850-900.
Stock Market Debut:
Listing Price: Rs 1,299, a 44.3% premium over IPO price.
Grey Market Comparison: Surpassed the expected 35.5% premium.
IPO Subscription Details:
Qualified Institutional Investors: 205.41 times their portion.
High-Net-Worth Individuals: 128.42 times their quota.
Retail Investors: 19.11 times their reserved portion.
Employees: 24.19 times their allocated quota, with a discount offered.
Company’s Services:
Turnkey PEB Contracts: Complete service from design to installation.
PEB Products: Includes metal ceilings, corrugated roofing, and steel structures.
Fundraising Strategy:
Fresh Issue: Rs 200 crore.
Offer-for-Sale: Rs 400.29 crore.