The Qualified Institutional Investors (QIB) category has been subscribed 19.21 times so far, and the Retail Investors category 5.4 times. The portion of the issue received for Qualified Institutional Buyers (QIB) has been subscribed only 30%.
Interarch GMP Construction Products
In the unlisted market, the company’s shares are trading at a market price of Rs 330, indicating a premium of 37% over the issue price. The market price was unchanged from the previous day.Interarch Building Products IPO Price Band
The IPO is priced between Rs 850 and Rs 900 per share, and investors can bid for 16 shares in one lot.Analysis of Interarch Building Products’ IPO
Analysts advised investors to subscribe to the issue as the company’s integrated manufacturing operations and proven execution capabilities coupled with a diverse customer base position it for continued growth.
“IBPL’s financial performance has been strong, characterised by consistent expansion in revenue and earnings. The IPO, valued at a P/E of 15.3x, appears to be attractively priced. Considering the company’s market leadership, strong financial performance and reasonable valuation, we recommend subscribing to the IPO,” Swastika Investmart said.
Other details
The proceeds from the new issue will be used to fund capital expenditures required for the start-up of the project, modernization of various manufacturing facilities, funding of investments in information technology assets, additional working capital requirements and general corporate purposes.
Interarch Building Products was established in 1983 and over the years the company has evolved into a turnkey PEB solutions provider, with integrated facilities for design and engineering, manufacturing and on-site project management capabilities for the installation and assembly of company supplied PEBs enabling it to offer comprehensive solutions to its customers.
The company’s revenue from operations for FY24 increased to Rs 1,293 crore from Rs 1,123 crore in the previous year, primarily due to an increase in revenue generated from pre-engineered construction contracts and sale of products through expansion of its sales and marketing presence in West Bengal and Telangana and diversification into new sectors/industries.
Profit after tax increased from Rs 81.46 crore for FY23 to Rs 86.26 crore for FY24. As of March 2024, Interarch Building Products’ order book stood at Rs 1,153 crore.
Ambit and Axis Capital are the lead managers for the issue, while Link Intime India is the registrar for the offer.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of The Economic Times)
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