Interarch Building Products is set to make its Dalal Street debut on Monday, August 26. If the signals from the grey market premium (GMP) are any indication, it is likely to deliver a healthy listing pop for investors. The company's GMP has remained firm since the IPO announcement.
A day before its listing, Interarch Building Products was commanding a grey market premium (GMP) of Rs 340-350 per share, suggesting a listing pop of around 40% for investors. However, the premium in the unofficial market has eased slightly from the Rs 365-370 range when the issue closed for bidding.
With the issue set to list on the bourses on Monday, the bidding for Interarch Building Products saw overwhelming interest from investors, with the issue being subscribed over 90 times. "We expect the issue to list at a premium of 37% on the back of the robust demand it has garnered among participants," said Akriti Mehrotra, Research Analyst at StoxBox.
"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. We thus advise participants who have been allotted shares to hold them from a medium to long-term perspective," she added.
The IPO of Interarch Building Products was open for bidding from August 19 to August 21. The company offered its shares in a fixed price band of Rs 850-900 apiece, with a lot size of 16 shares. It raised a total of Rs 600.29 crore from its IPO, including a fresh share sale of up to Rs 200 crore and an offer-for-sale (OFS) of up to 44,47,630 shares.
The issue was overall subscribed 93.53 times, thanks to a strong push from qualified institutional bidders (QIBs), whose quota was booked 205.41 times. The quota for non-institutional investors was subscribed 128.42 times. The portions reserved for retail investors and employees saw bidding of 19.11 times and 24.19 times, respectively, during the bidding process.
Incorporated in 1983, Interarch Building Products is a leading provider of turnkey pre-engineered steel construction solutions in India. The company offers integrated facilities for design, engineering, manufacturing, and on-site project management for the installation and erection of pre-engineered steel buildings (PEB).
Brokerages are mostly positive on the issue, suggesting investors subscribe for the long term. Ambit and Axis Capital are the book-running lead managers of the Interarch Building Products IPO, while Link Intime India is the registrar for the issue. Shares of the company are set to be listed on both BSE and NSE on Monday.