Interarch Building Products' IPO, valued at INR 600 crore, closed with exceptional interest, being oversubscribed by 93.46 times. The company received bids for 43.88 million shares, well above the 4.69 million shares available. Qualified Institutional Buyers (QIBs) led the demand, with bids exceeding 205 times the shares on offer. Non-Institutional Investors (NIIs) subscribed 128.42 times, and Retail Individual Investors (RIIs) 19.11 times. The IPO, priced between INR 850 and INR 900 per share, will fund capital expenditures and system upgrades. Managed by Ambit Pvt Ltd and Axis Capital, the shares will list on BSE and NSE.
Interarch Building Products, a player in the pre-engineered steel construction sector, experienced remarkable interest in its initial public offering (IPO), which closed on Wednesday. The IPO, valued at INR 600 crore, was oversubscribed by an impressive 93.46 times, highlighting the robust demand for shares in this sector. According to data from the National Stock Exchange (NSE), the company received bids for around 43.88 million shares, significantly surpassing the 4.69 million shares available.
Breaking down the figures, the portion allocated for Qualified Institutional Buyers (QIBs) was particularly notable, receiving bids that exceeded 205 times the shares on offer. Non-Institutional Investors (NIIs) also displayed strong interest, with subscription levels reaching 128.42 times. Retail Individual Investors (RIIs) were not left behind, with their quota subscribed at a rate of 19.11 times. This broad spectrum of interest reflects increased confidence in Interarch's business model and growth potential.
The IPO consisted of a fresh issue of shares worth up to INR 200 crore, alongside an offer for sale totaling 44,47,630 equity shares. Investors could purchase shares within the price range of INR 850 to INR 900 per share. The substantial response to the offering is an indicator of the current market environment, wherein investors are actively seeking opportunities in the construction and infrastructure space, catalysed by government spending on infrastructure development.
Proceeds from the fresh issue will be allocated towards capital expenditures, system upgrades, and other corporate purposes. Interarch intends to use these funds to enhance its operational capabilities and streamline processes, which is critical for maintaining competitiveness in the growing market for pre-engineered buildings. As construction demand rises across India, driven by urbanisation and infrastructure projects, Interarch is well-positioned to leverage its expertise in turnkey solutions.
The company stands out in its sector for its comprehensive approach to construction - providing integrated services that encompass design, engineering, manufacturing, and project management. This positions Interarch as a reliable partner for developers and builders who require efficient and effective construction solutions.
The IPO is being managed by Ambit Pvt Ltd and Axis Capital, two well-respected firms in the investment banking space. The shares are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), allowing for greater accessibility for investors looking to engage with this promising company.
As the construction sector continues to evolve, Interarch Building Products exemplifies the growing trend towards pre-engineered solutions. With the solid backing from institutional and retail investors alike in its IPO, the company is likely to pursue further strategic initiatives that could position it for sustained growth in the years to come.
Advertisement
Facebook
Whatsapp
